Question

Article 360 of the Constitution of India empowers the President to proclaim

• A. National Disaster
• B. State Emergency
• C. Financial Emergency
• D. National Emergency

Hint:

Remember the three emergencies: National (Art. 352), State (Art. 356), Financial (Art. 360). Each has distinct provisions and conditions.

Answer 1

The Correct Option is C

Step 1: Constitutional Provision: Article 360 of the Indian Constitution deals specifically with the proclamation of Financial Emergency. Unlike National Emergency (Article 352) or State Emergency (Article 356), Financial Emergency concerns the economic and financial stability of the country or its parts.
Step 2: Grounds for Proclamation: The President can proclaim a Financial Emergency if satisfied that the financial stability or credit of India or any part of its territory is threatened. This situation may arise during severe financial crisis or economic breakdown.
Step 3: Effects of Financial Emergency: When proclaimed, the executive authority of the Union extends to giving directions to any state regarding financial matters, including reducing salaries and controlling financial policies. This ensures centralized control to manage the financial crisis.
Step 4: Historical Context: Financial Emergency under Article 360 has never been invoked since the Constitution's adoption, reflecting its gravity and exceptional nature.
Therefore, the President is empowered to proclaim Financial Emergency under Article 360.