Thursday, April 20, 2017

Financial Emergency under Article 360 of Indian Constitution

The third and final type of emergency is known as the financial emergency.

The provisions for declaring a financial emergency are mentioned in Article 360 of the Indian Constitution.

According to this provision, the president can declare a proclamation for financial emergency if he is satisfied that a situation has arisen which can affect the financial stability or the credit of India or any part of the Indian Territory.

Just like we talked about in President's Rule, the thirty eight Amendment Act of 1975 provided that the satisfaction of the president about such a situation is final and conclusive.

This satisfaction, which acts as the grounds of financial emergency, cannot be challenged in a court of law.

This provision was also amended later by the 44th Amendment Act of 1978 which provided that the satisfaction of the president is not outside boundaries of judicial review.

Process of proclamation of financial emergency under Article 360 of Indian Constitution

The president can declare a financial emergency in the whole country or any part of the country if he is satisfied of its need.

Any such proclamation must be approved by both the houses of the Parliament which are Lok Sabha and Rajya Sabha, within two months from the date of the declaration.

But, if at the time of the declaration, Lok sabha is dissolved due to any reason whatsoever, then such a proclamation can only survive for 30 days starting from the first sitting of the reconstituted Lok Sabha.

Also, if the Lok Sabha is dissolved within the first two months of the proclamation, even then the proclamation will only survive for 30 days after the Lok Sabha has been reconstituted and has had its first sitting.

In the meantime the proclamation must have been approved by the Rajya Sabha.

Once the proclamation for financial emergency has been approved by both houses of the Parliament it shall continue indefinitely, until it is revoked by the president.

The president unlike national Emergency, can revoke the proclamation for financial emergency at any time, without seeking the approval of the Parliament(Lok Sabha).

Implications of Financial Emergency under Article 360 of Indian Constitution

1. There is no maximum period set for the operation of financial emergency.
2. Unlike National emergency or state emergency, there is no need for repeated approval from the parliament for the continuation of financial emergency

Effects of financial emergency as detailed under Article 360 of Indian Constitution

1. The executive authority of the central government is extended to give directions to the state governments to take proper and just financial decisions to tackle the problem at hand.

Also the central government is authorized to give adequate directions to the states as instructed by the president.

2. These directions may include the reduction in salaries and allowances of a particular class of people serving in the state or every citizen in the state.

The president can also reserve all money bills or other financial bills for his own consideration after they have been passed by the Legislature of the state.

3. The president can also issue directions to reduce the salaries and allowances of people from any class serving the union, including the judges of the Supreme Court and the High Courts.

Therefore to conclude, during a financial emergency, the central government takes full control over the financial matters of the states.

According to HN Kunzru, a member of the constituent assembly, the financial emergency provisions pose a grave threat to the financial autonomy of every Indian state.

Dr BR Ambedkar explained the reasons behind such provisions by stating that these provisions are similar in pattern to the National Recovery Act of the United States which was passed in 1933.

According to this, the President of The United States of America had the power to make similar provisions in order to remove and tackle both economic and financial difficulties.

This step was taken as a result of the Great Depression which had overtaken the American people in 1930.

Till date no financial emergency has been declared in the country or any part of it. However there was a financial crisis in the year 1991.

This concludes all three types of emergency provisions.

Despite all these advantages, some members of the constituent assembly criticized the inclusion of emergency provisions into the constitution based on the following grounds:

1. They were concerned that these provisions will destroy the federal character of the Constitution by making the central government really powerful.

2. President might become a dictator.

3. The financial emergency provisions will take away the financial autonomy and independence of a state.

4. Basic structure of the constitution which is based upon the rigidness of the fundamental rights will be destroyed.

According to H V Kamath, the emergency provisions lay the foundation of a totalitarian state which completely oppose all the ideas and principles of liberty and freedom.

He was concerned that the words Liberty or democracy might remain as mere words under the constitution if the president decides to use the emergency provisions to become a dictator.

TT Krishnamachari feared that by using these provisions the president and the executive will exercise a constitutional dictatorship.

HN Kunzru was concerned about the loss of financial autonomy of the states during financial emergencies.

In favor of the emergency provisions, Alladi Krishnaswamy Ayyer, called the emergency provisions the very life and breath of the constitution whereas Mahavir Tyagi considered the emergency provisions as a safety valve which will in turn help in the maintenance of the Indian Constitution.

Dr BR Ambedkar defended the emergency provisions in the constituent assembly but he was also concerned about their misuse.

In a statement he said," I do not altogether deny that there is a possibility of the articles being abused or employed for political purposes".

So to conclude this section of emergency provisions, these provisions can be called as the necessary evil of our constitution with both advantages and disadvantages.

There have been a lot of cases where the provisions for state emergency have been used for political gains in the past.

But there have also been certain cases where these unique emergency provisions have helped our nation under grave circumstances.

49 comments:

  1. Replies
    1. Machine Learning Projects for Final Year machine learning projects for final year

      Deep Learning Projects assist final year students with improving your applied Deep Learning skills rapidly while allowing you to investigate an intriguing point. Furthermore, you can include Deep Learning projects for final year into your portfolio, making it simpler to get a vocation, discover cool profession openings, and Deep Learning Projects for Final Year even arrange a more significant compensation.

      Python Training in Chennai Python Training in Chennai Angular Training

      Delete
  2. Believe it or not, it is the type of information I’ve long been trying to find. It matches to my requirements a lot. Thank you for writing this information. financial news for today

    ReplyDelete
  3. Thank you so much as you have been willing to share information with us. We will forever admire all you have done here because you have made my work as easy as ABC. http://ketquamoinhat.com/

    ReplyDelete
  4. Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. link vao w88

    ReplyDelete
  5. I got too much interesting stuff on your blog. I guess I am not the only one having all the enjoyment here! Keep up the good work. 파워볼 안전사이트

    ReplyDelete
  6. I read that Post and got it fine and informative. csgo ranks

    ReplyDelete
  7. Get Ahead Financial is the only place to buy and sell cryptocurrency in Vancouver Canada. With better fees than Bitcoin atm's. View our Canadian reviews online. Cryptocurrency Vancouver

    ReplyDelete
  8. Of course, your article is good enough, 먹튀검증 but I thought it would be much better to see professional photos and videos together. There are articles and photos on these topics on my homepage, so please visit and share your opinions.

    ReplyDelete
  9. I am very impressed with your writing 메이저놀이터 I couldn't think of this, but it's amazing! I wrote several posts similar to this one, but please come and see!

    ReplyDelete
  10. First of all, I would like to thank you for writing this article. I'm trying to make an article by citing your article.먹튀신고

    ReplyDelete
  11. Are there any supreme court cases on article 360?

    ReplyDelete
  12. The article composing business is going extraordinary for me at this moment, and the vast majority of my prosperity is because of the substance that you post here. I utilize your substance to compose my articles, and the substance makes my great article incredible. 온라인포커

    ReplyDelete
  13. In the meantime, I wondered why I couldn't think of the answer to this simple problem like this. Your article is an article that gives the answer to all the content I've been contemplating. 메이저토토사이트

    ReplyDelete
  14. Hi there colleagues, its wonderful paragraph on the topic of tutoringand completely explained,
    keep it up all the time.강남오피

    ReplyDelete
  15. Thanks for writing this awesome 메이저사이트. I'm a long time reader but I've never been compelled to leave a comment. I subscribed to your blog and shared this on my Facebook. Thanks again for a great article!

    ReplyDelete
  16. I am the one who writes on a topic similar to yours. I hope you come to my blog and take a look at the posts I've been writing. 안전놀이터추천

    ReplyDelete
  17. ou need to be a part of a contest for one of the highest quality sites on the 토토사이트. I most certainly will recommend this site!

    ReplyDelete
  18. Oh, the data you've shared in this incredible article is just magnificent. I am definitely going to make more use of this data in my future projects. You must continue sharing more data like this with us. 메이저사설놀이터

    ReplyDelete
  19. Incredible Info! I Recently Came Across Your Blog And Have Been Reading Along. I Thought I Would Leave My First Comment. I Don't Know What To Say Except That I Have.
    subject line for goodbye email samples

    ReplyDelete
  20. You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers. 메이저놀이터순위

    ReplyDelete
  21. Thank you a bunch for sharing this with all of us you actually realize what you are talking about! Bookmarked. Please also seek advice from my site =). We could have a hyperlink change contract between us 메이저놀이터

    ReplyDelete
  22. Your article was very impressive to me. It was unexpected information,but after reading it like this Kèonhàcái, I found it very interesting.

    ReplyDelete
  23. Thanks for your marvelous posting! I actually enjoyed reading it, you could be
    a great author.I will remember to bookmark your blog and will
    eventually come back from now on. I want to encourage you to continue your great
    writing, have a nice weekend!

    Website:카지노


    ReplyDelete
  24. I figure this article can be enhanced a tad. There are a couple of things that are dangerous here, and if you somehow managed to change these things, this article could wind up a standout amongst your best ones. I have a few thoughts with respect to how you can change these things. 메이저사설놀이터

    ReplyDelete
  25. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value. Im glad to have found this post as its such an interesting one! I am always on the lookout for quality posts and articles so i suppose im lucky to have found this! I hope you will be adding more in the future. 토토사이트

    ReplyDelete
  26. When I read your article on this topic, the first thought seems profound and difficult. There is also a bulletin board for discussion of articles and photos similar to this topic on my site, but I would like to visit once when I have time to discuss this topic. 메이저사이트

    ReplyDelete
  27. Hey There. I found your blog using msn. This is a very well written article. I’ll be sure to bookmark it and come back to read more of your useful info. Thanks for the post. I’ll definitely return. 안전놀이터

    ReplyDelete
  28. It’s awesome to pay a visit this web page and reading the views of all colleagues concerning
    this piece of writing, while I am also zealous of getting knowledge. 토토사이트

    ReplyDelete
  29. What’s Taking place i’m new to this, I stumbled upon this I’ve found It absolutely useful and it has aided me out loads. I hope to give a contribution & aid other
    customers like its aided me. Great job. 경마사이트
    경마

    ReplyDelete
  30. Everyone loves it when folks come together and share opinions.
    Great site, stick with it! 바카라

    ReplyDelete
  31. I am actually grateful to the holder of this site who has shared
    this enormous article at here. 사설토토

    ReplyDelete
  32. The vacation trades offered are evaluated a variety of in the chosen and simply good value all around the world. Those hostels are normally based towards households which you’ll find accented via charming shores promoting crystal-clear fishing holes, concurrent of one’s Ocean. Hotels Discounts 메이저놀이터

    ReplyDelete
  33. As I am looking at your writing, I regret being unable to do outdoor activities due to Corona 19, and I miss my old daily life. If you also miss the daily life of those days, would you please visit my site once? My site is a site where I post about photos and daily life when I was free.bong88

    ReplyDelete
  34. Hello, I am one of the most impressed people in your article. 메이저토토사이트 I'm very curious about how you write such a good article. Are you an expert on this subject? I think so. Thank you again for allowing me to read these posts, and have a nice day today. Thank you.

    ReplyDelete
  35. What a post I've been looking for! I'm very happy to finally read this post. 안전놀이터 Thank you very much. Can I refer to your post on my website? Your post touched me a lot and helped me a lot. If you have any questions, please visit my site and read what kind of posts I am posting. I am sure it will be interesting.

    ReplyDelete
  36. Hey there! I could have sworn I’ve been to this website before but after reading through some of the post I realized it’s new to me. Nonetheless, I’m definitely happy I found it and I’ll be book-marking and checking back frequently 안전놀이터추천

    ReplyDelete
  37. 온라인카지노 I just found this blog and have high hopes for it to continue. Keep up the great work, its hard to find good ones. I have added to my favorites. Thank You.

    ReplyDelete
  38. 바카라사이트 wow... what a great blog, this writter who wrote this article it's realy a great blogger, this article so inspiring me to be a better person

    ReplyDelete
  39. how you managed this blog so well. It’s so 메이저사이트remarkable thato through this valuable information whenever

    ReplyDelete
  40. work and wondering how you managed this blog so well. It’s so remarkable thato through this valuable information whenever 메이저사이트

    ReplyDelete
  41. very much for all your proposals on 메이저사이트 this site. Your shares are very interesting and very enriching

    ReplyDelete
  42. I blog often and I truly appreciate your content.
    야설

    Feel free to visit my blog :
    야설

    ReplyDelete
  43. This great article has truly peaked my interest.
    일본야동
    Feel free to visit my blog : 일본야동

    ReplyDelete
  44. I’m going to bookmark your site and keep checking for new details about once per week.
    국산야동
    Feel free to visit my blog : 국산야동

    ReplyDelete
  45. I subscribed to your Feed too.
    일본야동
    Feel free to visit my blog : 일본야동

    ReplyDelete
  46. Hi there! This article could not be written much better!
    야설
    Feel free to visit my blog : 야설

    ReplyDelete
  47. I am regular visitor, how are you everybody?
    This article posted at this website is in fact good
    Iポーカー

    ReplyDelete
  48. Truly when someone doesn’t know then its up to other visitors that they will assist, soo here it happens.
    고스톱

    ReplyDelete

Add a Comment or Query