Emergency Financial Emergency

Summary

This video explores the provisions of Financial Emergency as outlined in Article 360 of the Indian Constitution. It details the President's authority to declare a Financial Emergency, the necessity of parliamentary approval, and the implications for salaries and financial governance. The video highlights historical contexts, including experiences from other federations during economic crises, and emphasizes the legal finality of such declarations. Through this analysis, viewers gain a comprehensive understanding of how these constitutional measures enable the government to act decisively in times of financial distress while maintaining checks and balances.

Takeaways

• 😀 Article 360 of the Indian Constitution empowers the President to proclaim a financial emergency when the financial stability of any part of the territory is threatened.
• 😀 A proclamation of financial emergency must be approved by both Houses of Parliament within two months of its issuance.
• 😀 If the Lok Sabha is dissolved, the proclamation can survive for two months without approval, as long as the Rajya Sabha has approved it.
• 😀 Financial emergencies can lead to the reduction of salaries and allowances for various public servants, as specified by the President's directions.
• 😀 The 38th Amendment Act of 1975 clarified the procedures for declaring a financial emergency and its implications.
• 😀 Financial emergencies enhance the central government's supervision over state financial matters.
• 😀 The concept of financial emergencies was influenced by the experiences of federations like the USA, Canada, and Australia during the 1930s depression.
• 😀 The government of India can take effective actions under Article 360 to address economic problems during a financial emergency.
• 😀 The validity of a financial emergency declaration made by the President cannot be questioned in any court.
• 😀 The 44th Amendment of the Constitution has removed certain provisions related to the finality of the President's declarations regarding financial emergencies.

Q & A

What does Article 360 of the Indian Constitution empower the President to do?

Article 360 empowers the President to proclaim a financial emergency if the financial stability or credit of India or any part of its territory is threatened.

What is required for a proclamation of financial emergency to remain valid?

The proclamation must be approved by both Houses of Parliament within two months from its issuance.

What happens if the Lok Sabha is dissolved before the proclamation is approved?

If the Lok Sabha is dissolved, the proclamation survives until the Lok Sabha is reconstituted, provided the Rajya Sabha has approved it in the meantime.

How long does a financial emergency continue once approved by both Houses of Parliament?

A financial emergency continues indefinitely until it is revoked.

What significant change was made by the 38th Amendment Act of 1975 regarding financial emergency?

The 38th Amendment Act of 1975 provided clarity on the government's powers during a financial emergency and allowed for the issuance of directions for salary reductions.

Can the President issue directions regarding salary and allowances during a financial emergency?

Yes, the President can issue directions for the reduction of salaries and allowances of persons serving in the State, including judges of the Supreme Court and High Courts.

What happens to a proclamation of financial emergency if it is not approved by both Houses of Parliament within two months?

The proclamation ceases to have effect after two months unless it is approved by both Houses.

What historical context influenced the inclusion of Article 360 in the Constitution?

Article 360 was influenced by the experiences of federations such as the USA, Canada, and Australia during the Great Depression of the 1930s.

How did the Supreme Court of India view the powers of the President under Article 360?

The Supreme Court ruled that the declaration made by the President under Article 360 is final and not subject to judicial review on any grounds.

What is the significance of the 44th Amendment to the Constitution concerning financial emergency?

The 44th Amendment deleted certain provisions related to the finality of the President's declaration, allowing for judicial scrutiny in cases related to financial emergencies.