Financial Emergency (Article 360) - Emergency provisions Polity UPSC notes

Financial Emergency (Article 360) - Emergency provisions Polity UPSC notes

Financial Emergency (Article 360) Grounds for Declaration The President can declare a Financial Emergency if he believes that the financial stability or credit of India (or any part of it) is threatened . Initially (1975 - 38th Amendment): The President's decision could not be questioned in court. Later (1978 - 44th Amendment): This shield was removed , meaning the courts can review the President’s decision if needed. Parliamentary Approval and Duration Step 1: After the President issues the Financial Emergency Proclamation , it must be approved by both Lok Sabha and Rajya Sabha within 2 months . What if Lok Sabha is dissolved? The Emergency still continues for 30 days from the new Lok Sabha’s first session , but Rajya Sabha must approve it in the meantime . No Maximum Time Limit: Once approved, the Financial Emergency continues indefinitely until the President revokes it . Unlike President’s Rule (Article 356), no repeated parliamentary approval is required . Approval Process: It only requires a simp…