Question

How many times has a Financial Emergency under Article 360 been proclaimed in India?

• A. Once -- during the 1975 Emergency
• B. Never
• C. Twice -- in 1962 and 1975
• D. Once -- during the 1962 war with China

Hint:

Remember the emergency provisions: align* Article 352 & National Emergency
Article 356 & President's Rule
Article 360 & Financial Emergency align* Among these, Financial Emergency has never been declared in India.

Answer 1

The Correct Option is B

Concept: Part XVIII of the Constitution of India deals with Emergency Provisions. These provisions were incorporated to enable the Union Government to effectively respond to extraordinary situations that may threaten the sovereignty, security, constitutional governance, or financial stability of the nation. The Constitution recognizes three types of emergencies: National Emergency, State Emergency (President's Rule), and Financial Emergency.

Step 1: Understand the constitutional basis of Financial Emergency. Article 360 empowers the President of India to proclaim a Financial Emergency if he or she is satisfied that a situation has arisen whereby the financial stability or credit of India or any part of its territory is threatened. A Financial Emergency may be declared when:

• The financial credibility of the nation is at risk.

• Economic conditions threaten governmental functioning.

• Severe fiscal instability affects the Union or any State.

Step 2: Examine the consequences of a Financial Emergency. If proclaimed:

• The Union Government may issue financial directions to States.

• Salaries and allowances of government employees may be reduced.

• Salaries of Supreme Court and High Court judges may also be reduced.

• All Money Bills passed by State Legislatures may require Presidential consideration.

Step 3: Review India's constitutional history. Although India has experienced major economic challenges, including:

• The 1966 economic crisis,

• The 1991 balance of payments crisis,

• Various global financial downturns,
no government has considered the situation severe enough to invoke Article 360.

Step 4: Compare with other emergencies.

• National Emergency under Article 352 has been proclaimed three times.

• President's Rule under Article 356 has been imposed numerous times.

• Financial Emergency under Article 360 has never been proclaimed.
Therefore, the correct answer is

(B) Never.