Explanation
Financial emergency under Article 360 must be approved by the parliament within two months by a simple majority. A state of financial emergency remains in force indefinitely until revoked by the President. The President is empowered to take following actions during this time:• The president can reduce the salaries of all government officials, including judges of the supreme court and high courts, in cases of a financial emergency. • All money bills passed by state legislatures are submitted to the president for approval.• He can direct the state to observe certain principles (economy measures) relating to financial matters.However, the President can suspend the normal allocation of revenues during the period of financial emergency.
The Constitution of India has provided for imposition of emergency caused by war, external aggression or internal rebellion. This is described as the National Emergency. This type of emergency can be declared by the President of India if he is satisfied that the situation is very grave and the security of India or any part thereof is threatened or is likely to be threatened either, by war or external aggression by armed rebellion within the country.
The declaration of National Emergency has effects both on the rights of individuals and the autonomy of the states. The Fundamental Rights under Article 19 are automatically suspended and this suspension continues till the end of the emergency.
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