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| What is Article 360 of Indian constitution |
Article 360 of the Indian Constitution
Title: Provisions as to Financial Emergency
🔷 Explanation of Article 360:
Article 360 empowers the President of India to declare a Financial Emergency if he is satisfied that the financial stability or credit of:
-
India or
-
Any part of its territory
is threatened.
✅ Key Provisions of Article 360:
| Clause | What it states |
|---|---|
| (1) | If the President is satisfied that the financial stability or credit of India (or any part thereof) is under threat, he may proclaim a Financial Emergency. |
| (2) | The Proclamation must be approved by both Houses of Parliament within 2 months. |
| (3) | Once approved, it remains in force indefinitely (no time limit like other Emergencies). |
| (4) | During a Financial Emergency, the Union can direct States to: |
-
Reduce salaries and allowances of civil servants,
-
Reserve money bills for the President’s consideration,
-
Reduce salaries of judges (including SC and HC judges). |
🟢 Key Effects of Article 360:
| Area | Effect |
|---|---|
| Centre-State Relations | Union gets financial control over State governments |
| Salaries | Centre can reduce salaries and pensions of all government officials (including judges) |
| State Budgets | States may be instructed to get Presidential approval for money bills |
| Duration | Unlimited once approved, until revoked by the President |
| Judicial Review | The validity of the proclamation can be challenged in courts |
📌 Notable Facts:
-
✅ Never Invoked: As of 2025, no Financial Emergency has ever been declared in India.
-
🧾 Designed as a last-resort tool to prevent economic collapse.
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Introduced to address situations like:
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Hyperinflation
-
Currency collapse
-
International credit downgrade
-
Severe fiscal deficit
-
📝 Example Scenario (Hypothetical):
If India faces an economic crisis like 1991 again (foreign reserves exhausted, default risk), Article 360 could be invoked to:
-
Cut administrative costs
-
Freeze or reduce government salaries
-
Redirect financial resources centrally
Here is a complete comparison chart of the three types of Emergencies in the Indian Constitution:
🛑 Comparison of National Emergency, President’s Rule & Financial Emergency
| Feature | National Emergency(Article 352) | President’s Rule(Article 356) | Financial Emergency(Article 360) |
|---|---|---|---|
| Type | National Emergency | State Emergency / President's Rule | Financial Emergency |
| Declared By | President, on written advice of Union Cabinet | President, usually based on Governor's report | President, if financial stability is threatened |
| Grounds for Proclamation | Threat from: 🔹 War 🔹 External aggression 🔹 Armed rebellion | Breakdown of constitutional machinery in a State | Threat to financial stability or credit of India or its territory |
| Constitutional Article | Article 352 | Article 356 | Article 360 |
| Scope of Application | Entire India or any part | Specific State or Union Territory | Entire India or part thereof |
| Parliamentary Approval | Within 1 month, renewable every 6 months | Within 2 months, renewable every 6 months (up to 3 years max) | Within 2 months, no maximum time limit |
| Duration | Can be indefinitely extended with 6-month approvals | Maximum 3 years (with conditions) | No time limit; continues till revoked |
| Impact on Fundamental Rights | Article 19 suspended (only in war/aggression) Other rights can be suspended under Article 359 | No direct impact | No direct impact |
| Effect on State Govt | Parliament can legislate on State List, Centre can direct States | State Government dismissed; Centre rules through Governor | Centre can reduce salaries, control State finances |
| Effect on Legislature | Parliament assumes full law-making powers | State Assembly suspended or dissolved | President can control financial legislation in States |
| Effect on Judiciary | No direct impact, but laws violating rights may be shielded | No direct effect | Salaries of judges can be reduced |
| Judicial Review? | ✅ Yes (after 44th Amendment) | ✅ Yes (S.R. Bommai case) | ✅ Yes |
| Has it been used? | ✅ Yes: 1962, 1971, 1975 (Internal Emergency) | ✅ Yes: Over 100 times in various States | ❌ Never invoked in India so far |
📝 Summary:
| Emergency Type | Focus Area | Key Feature |
|---|---|---|
| 🔴 National Emergency | Entire nation’s security | Total expansion of Centre’s power |
| 🟠 President’s Rule | State government failure | Centre takes over State |
| 🟢 Financial Emergency | Economic crisis | Central control over State finances and salaries |
Here's a 📅 Timeline of Emergencies in India under Articles 352, 356, and 360:
🔴 National Emergency Timeline (Article 352)
| Year | Reason | Duration | President | Details |
|---|---|---|---|---|
| 1962 | 🇨🇳 India-China War (external aggression) | Oct 26, 1962 – Jan 10, 1968 | Dr. S. Radhakrishnan | First National Emergency; lasted ~6 years |
| 1971 | 🇵🇰 India-Pakistan War (external aggression) | Dec 3, 1971 – Mar 21, 1977 | V. V. Giri / Fakhruddin Ali Ahmed | Second Emergency; continued along with 1975 Emergency |
| 1975 | Internal Disturbance (political crisis) | June 25, 1975 – Mar 21, 1977 | Fakhruddin Ali Ahmed | Third Emergency; most controversial; used to curb opposition & media |
⚠️ Total National Emergencies declared: 3
🧾 Note: After the 44th Amendment (1978), Emergency can now only be declared for war, external aggression, or armed rebellion — not just "internal disturbance."
🟠 President’s Rule (Article 356) — State Emergency Timeline Highlights
📌 Imposed Over 130 Times in various States since 1950.
| Year | State | Reason |
|---|---|---|
| 1951 | Punjab | First-ever President’s Rule |
| 1977 | Nine States | After Janata Party came to power; Congress-ruled States dismissed |
| 1980 | Nine States | After Indira Gandhi's return; Janata-ruled States dismissed |
| 1991 | Tamil Nadu | Alleged deterioration of law and order |
| 2005 | Bihar | Political deadlock & failure to form government |
| 2016 | Uttarakhand | Political crisis and rebel MLAs |
| 2016 | Arunachal Pradesh | Constitutional breakdown |
🟠 Most frequently used Emergency — sometimes controversially for political gains.
⚖️ S.R. Bommai judgment (1994) placed strict checks on its misuse.
🟢 Financial Emergency (Article 360)
| Year | Status | Remarks |
|---|---|---|
| ❌ Never Declared | Not used in Indian history till date | Even during 1991 economic crisis, it was not invoked |
🧾 Considered the most severe emergency — impacts salaries, pensions, and state autonomy.
🧊 Used only in extreme financial collapse — so far avoided in India.
✅ Summary Timeline (Quick View):
| Type | Total Times Used | First Used | Last Used |
|---|---|---|---|
| 🔴 National Emergency | 3 times | 1962 | 1975 (ended 1977) |
| 🟠 President’s Rule | 130+ times | 1951 (Punjab) | 2016 (Uttarakhand & Arunachal Pradesh) |
| 🟢 Financial Emergency | Never | — | — |
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