There are three types of emergencies-
3) Financial emergency (Article-360)
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Financial emergency (Art.360)
Article 360 of Indian Constitution provides , if the president is satisfied that situation has arisen whereby the financial stability or credit of India or part of the territory thereof is threatened, he may By proclamation make a declaration to that effect.
The 44th Amendment makes Article 360 of self-contained. It provides that the proclamation of financial emergency shall cease to be in operation at the expiry of 2 months unless it has been approved by both houses of Parliament. Such a proclamation may be revoked or varied by the president by a subsequent proclamation. But if the Lok-Sabha is dissolved is all during the period of 2 months and resolution is approved by the Rajya-Sabha, but not by Lok Sabha the proclamation shall cease to operate at the expiry of 30 days from the date on which the new lok sabha sits unless before the expiry of 30 days a resolution approving proclamation is passed by Lok Sabha.
During the period when such a proclamation is in Operation, executive authority of the union shall extend to giving direction to any state to observe such canons of financial propriety as may be specified in the direction and be deemed necessary by the president for maintaining financial stability and the credit of the state. Any such direction may include a provision of A reduction of salary and allowances of all or any class of Persons serving in the state , including the judges of supreme court and high Courts. It may also it may also require that all money or financial Bills are to be reserved for the consideration of the president after they are passed by the Legislature of the state.
The duration of proclamation of financial emergency will be in operation for 2 months and unless approved by the president it shall Cease to operate at the expiry of 2 months Period.
The Constitution of India is unique in respect that it contains a complete scheme for Speedy readjustment of the peace time governmental machinery and movement of national peril . These provisions may appear to be particularly in a constitution which profess To be built upon an edifice of fundamental rights and democracy. But the provision must be studied in the light of India's past history. India had her in glorious days whenever the central power grew weak. It is for well that the constitution guards against the forces of disintegration. Events may take place threatening the very existence of the state and if there are no Safeguard's against such eventualities the state together with all that is desired desire to remain basic and immutable, will be swept away.