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| What is Article 354 of Indian constitution |
Article 354 of the Indian Constitution
Title: Application of provisions relating to distribution of revenues while a Proclamation of Emergency is in operation
🔷 Explanation of Article 354:
Article 354 gives temporary financial powers to the President during a National Emergency (Article 352). It allows changes in how tax revenues are distributed between the Centre and the States.
✅ Key Provision:
While a Proclamation of Emergency is in operation under Article 352,
the President may by order direct that the provisions of:
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Article 268 (Duties levied by the Union but collected by the States), and
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Article 269 to 273 (Distribution of revenues between Union and States),
shall have effect subject to such exceptions or modifications as he thinks necessary.
🗓️ Duration: Such an order remains in force only until the end of the financial year in which the Emergency ceases to operate.
🟢 Key Points:
| Aspect | Details |
|---|---|
| Applies When? | Only during a National Emergency declared under Article 352 |
| Who exercises power? | President of India, through an official order |
| What can be changed? | Distribution of tax revenues between Centre and States |
| Which Articles are affected? | Articles 268 to 273 (covering taxes like excise duties, customs, and grants-in-aid) |
| Purpose | To allow the Centre to reallocate financial resources during a crisis |
| Limitation | Changes last only till the end of the financial year after the Emergency ends |
📌 Purpose of Article 354:
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To ensure that the Union Government has flexibility in using funds during times of national crisis.
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Allows the Centre to divert more financial resources to areas most affected by war, aggression, or rebellion.
📝 Example:
During a war, the President may reduce the State’s share of central taxes temporarily so that more funds are available for defense and emergency management.
Here is a comparison chart between Article 353 and Article 354 of the Indian Constitution:
🗂️ Comparison Chart: Article 353 vs Article 354
| Aspect | Article 353 | Article 354 |
|---|---|---|
| Title | Effect of Proclamation of Emergency | Application of revenue distribution provisions during Emergency |
| Main Focus | Expansion of executive and legislative powers during National Emergency | Modification of financial distribution between Centre and States during Emergency |
| Applies During | National Emergency under Article 352 | National Emergency under Article 352 |
| Who Exercises Power | Union Executive and Parliament | President of India |
| Scope of Power | Parliament can make laws on State List, Centre can direct States | President can alter how revenue is shared under Articles 268–273 |
| Effect on States | Reduces State autonomy in administration and legislation | Reduces State share in taxes and grants temporarily |
| Nature of Provision | Administrative and legislative powers | Financial powers |
| Time Limit | Laws remain valid during Emergency and 6 months after it ends | Order valid till end of financial year in which Emergency ends |
| Example | Centre directs all States on internal security during war | President modifies tax-sharing ratios to fund defense expenditure |
📝 Summary:
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⚙️ Article 353 = Expands Union’s control over governance and law-making during National Emergency.
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💰 Article 354 = Gives financial flexibility to the Union by adjusting tax sharing with States during that period.
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