Economic and social activities have come to a halt in the whole world including India because of the COVID-19 pandemic. Because of this, the financial condition is deteriorating day by day, bringing up a question in everybody's mind whether a financial emergency can be declared in the country and under what conditions is it announced in the country.
Article 360 of the Indian Constitution deals with the financial emergency. When the President is certain that the financial stability of India is under threat, then he imposes Financial Emergency. The proclamation must be passed by both the houses of the Parliament within 2 months of the same. While the President has the power to declare financial emergency, the Supreme Court can only review such declarations. Once passed, it continues indefinitely until it is revoked.
The proclamations of the Financial Emergency have the following consequences:-
1.During this, the Centre can provide financial order to any state according to them.
2.All the financial bills in the process of the President's assent can be reserved.
3.Salaries and allowances of the persons serving in the state can be reduced. Even, during COVID-19, all the Members of the Parliament have decided to accept a 30% pay cut for the year.
These provisions were given with the objective of preserving the dignity of the Constitution, and its aim is to protect the constitutional order. As happened in numerous nations during the popular World Economic Depression of the 1930s, an economic recession can be effectively averted by a financial emergency.
“To contract new debts is not the way to pay old ones.”
-George Washington
By:
Gauri Khanna
Comentarios