2020 Current Affairs: Indian Constitution Article 360 decodes Financial Emergency – a must-read!

Interested in learning about financial emergencies and how they are defined in Article 360 of the Indian Constitution? Check out this informative article discussing current affairs in 2020!

1. What is a financial emergency?
   A financial emergency is a situation where the financial stability or credit of India or any part of its territory is threatened.

2. How is a financial emergency declared in India?
   A financial emergency can be declared by the President of India if he/she is satisfied that the financial stability or credit of India or any part of its territory is threatened.

3. What are the conditions under which Article 360 of the Indian Constitution can be invoked?
   Article 360 can be invoked if the government seeks a financial emergency due to circumstances like a breakdown in the financial stability of the country, the existence of a threat to the financial stability or credit of India, or a situation where the financial stability or credit of any part of India is threatened.

4. When was the last time a financial emergency was declared in India?
   A financial emergency has never been declared in India since the independence in 1947.

5. What measures can be taken during a financial emergency?
   During a financial emergency, the President can authorize the central government to issue directions to any state to observe such canons of fiscal propriety as may be specified by it, and to provide adequate facilities for instruction in economics, financial administration, accounting, and auditing.

6. What is the significance of Article 360 in the Indian Constitution?
   Article 360 is an important provision in the Indian Constitution as it provides for measures to be taken during a financial emergency in order to ensure the financial stability and credit of the country.

7. Can a financial emergency be declared by the President at any time?
   Yes, the President has the discretion to declare a financial emergency at any time if he/she deems it necessary to protect the financial stability or credit of India.

8. How does a financial emergency differ from a national emergency in India?
   A financial emergency pertains specifically to economic and financial matters, while a national emergency deals with threats to the security of India or any part of its territory.

Article 360 of the Indian Constitution allows the President to declare a financial emergency in the country if there is a threat to the financial stability of the nation. This provision was inspired by the Weimar Constitution of Germany and was included in the Indian Constitution as a measure to tackle severe financial crises. A financial emergency can be declared if the President is satisfied that the financial stability of India or any part of its territory is threatened due to factors such as war, external aggression, or economic crises.

During a financial emergency, the President is empowered to give directions to the states on various matters related to finance, including the reduction of salaries and allowances of all government employees. The President can also direct the states to reserve all money bills passed by the legislature for consideration of the Parliament. However, the powers of the President under Article 360 are not unlimited and are subject to judicial review. The declaration of a financial emergency must be approved by both houses of Parliament within two months of its issuance, and it remains in force for six months.

In the history of independent India, a financial emergency has been declared only once, during the tenure of Prime Minister Indira Gandhi in 1975. The financial emergency was declared by then President Fakhruddin Ali Ahmed on June 25, 1975, citing the prevailing economic crisis in the country. The emergency lasted for 21 months and saw the suspension of several civil liberties and the imposition of strict government control over various aspects of society.

The declaration of a financial emergency is a serious step that can have far-reaching consequences on the economy and the lives of the people. It is considered a measure of last resort and is only invoked in extreme circumstances where the financial stability of the nation is at stake. The provisions of Article 360 are designed to ensure that the government has the necessary tools to prevent a complete breakdown of the financial system and to safeguard the economic interests of the country.

In conclusion, Article 360 of the Indian Constitution provides for the declaration of a financial emergency in the country in case of a severe threat to its financial stability. The powers of the President under this provision are not unlimited and are subject to judicial review. The declaration of a financial emergency is a measure of last resort and is meant to be used only in extreme circumstances. It remains to be seen if this provision will be invoked in the future to address any financial crises that may arise in the country.

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