Short Paragraph on Financial Emergency – Article 360 of the Constitution provides for Financial Emergency to be declared by the President of India if there is threat to the financial stability of the nation.
During this period the executive authority of the Union extends to the effect that it could issue directions to any State with respect to finances as it deems necessary. This direction may include a provision requiring the reduction of salaries and allowances of all or any class of persons in connection with affairs of a State. Economic autonomy and self-reliance goes a long way in preserving the political independence of a country. Therefore, in case of a financial emergency it is important that the country stands together. It is to avoid any disharmonious functioning that a number of councils, committees, commissions and other political and constitutional bodies have been constituted.
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