Financial emergency can be declared under __________ of the Constitution of India.
- A.Article 356
- B.Article 359
- C.Article 360
- D.Article 352
Show answer
Correct answer: C. Article 360
Explanation
The correct answer is C, Article 360. Article 360 lets the President proclaim a financial emergency when the financial stability or credit of India, or of any part of it, is threatened. Such a proclamation must be approved by both Houses of Parliament within two months, after which it continues indefinitely until revoked; there is no maximum period. During it the Union can direct states to follow canons of financial propriety, and salaries of government servants, including Supreme Court and High Court judges, can be reduced. No financial emergency has ever been declared in India, though it was discussed during the 1991 crisis. D is wrong because Article 352 is the national emergency on grounds of war, external aggression or armed rebellion, imposed in 1962, 1971 and 1975. A is wrong because Article 356 is President's rule, imposed when a state's constitutional machinery fails. B is wrong because Article 359 only suspends the enforcement of fundamental rights during a national emergency. Exam tip: 352 national, 356 state, 360 financial; only 360 has never been used.