Today, as India is battling the COVID-19 pandemic, financial and economic threats surround it. The government has announced various economic schemes, such as a relief package of Rs 1.70 lakh crore, an extension of dates for filing taxes, providing Rs 15,000 crore for health infrastructure, the need to maintain some minimum balance in bank accounts To complete, etc. State governments have also introduced financial packages. In addition, the Reserve Bank of India (RBI) has relaxed norms for Insolvency and Bankruptcy, SMEs etc.
Due to this, it seems that a financial emergency will be imposed in the country for the first time. However, according to government reports, no steps have been taken to impose a financial emergency yet.
What is a Financial Emergency?
Article 360 of the Constitution describes the provision of a financial emergency. Under this, when the President fully believes that there is an economic crisis in the country or the Center is on the verge of bankruptcy, then the Honorable President can declare a financial emergency.
According to this article 360, in the event of an economic emergency, the money and property of ordinary citizens will also be the right of the country. The President can also reduce the salary of any employee.
Article 360 of the Indian Constitution describes the provision of a financial emergency, which is as follows:
(1) If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened, he may by a Proclamation make a declaration to that effect
(2) A Proclamation issued under clause ( 1 )
(a) may be revoked or varied by a subsequent Proclamation;
(b) shall be laid before each House of Parliament;
(c) shall cease to operate at the expiration of two months unless before the expiration of that period it has been approved by resolutions of both Houses of Parliament: Provided that if any such Proclamation is issued at a time when the House of the People has been dissolved or the dissolution of the House of the People takes place during the period of two months referred to in sub-clause (c), and if a resolution approving the Proclamation has been passed by the Council of States, but no resolution with respect to such Proclamation has been passed by the House of the People before the expiration of that period, the Proclamation shall cease to operate at the expiration of thirty days from the date on which the House of the People first sits after its reconstitution unless before the expiration of the said period of thirty days a resolution approving the Proclamation has been also passed by the House of the People
(3) During the period any such Proclamation as is mentioned in clause ( 1 ) is in operation, the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety as may be specified in the directions, and to the giving of such other directions as the President may deem necessary and adequate for the purpose
(4) Notwithstanding anything in this Constitution
(a) any such direction may include
(i) a provision requiring the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of a State;
(ii) a provision requiring all Money Bills or other Bills to which the provisions of Article 207 apply to be reserved for the consideration of the President after they are passed by the Legislature of the State;
(b) it shall be competent for the President during the period any Proclamation issued under this article is in operation to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of the Supreme Court and the High Courts PART XIX MISCELLANEOUS