Question

Under which Article of the Indian Constitution can the President impose Financial Emergency?

• A. Article 352
• B. Article 356
• C. Article 360
• D. Article 365

Hint:

Types of emergencies in the Indian Constitution:

• \textbf{Article 352} → National Emergency
• \textbf{Article 356} → President's Rule (State Emergency)
• \textbf{Article 360} → Financial Emergency

Memory trick: \[ \textbf{352 → Nation} \] \[ \textbf{356 → State} \] \[ \textbf{360 → Finance} \]

Answer 1

The Correct Option is C

Concept:
The Indian Constitution provides provisions for different types of emergencies to protect the country's stability and governance during extraordinary situations. These emergencies are classified into three categories:

• National Emergency – Article 352
• State Emergency (President's Rule) – Article 356
• Financial Emergency – Article 360

A Financial Emergency can be declared when the financial stability or credit of India or any part of its territory is threatened. Under Article 360, the President of India has the authority to proclaim a financial emergency if he or she is satisfied that the financial stability of the country is at risk. If Financial Emergency is declared, the central government gains extensive powers such as:

• Directing states to observe financial discipline
• Reducing salaries and allowances of government employees
• Reducing salaries of judges of the Supreme Court and High Courts
• Requiring states to reserve money bills for presidential consideration

It is important to note that Financial Emergency has never been declared in India so far.
Step 1: Understand the type of emergency mentioned.

The question asks about the constitutional provision related to Financial Emergency.
Step 2: Recall the relevant article.

Financial Emergency is specifically provided under: \[ \text{Article 360} \]
Step 3: Analyze the options.

• Option (A): Article 352 — National Emergency.
• Option (B): Article 356 — President's Rule in states.
• Option (C): Article 360 — Financial Emergency.
• Option (D): Article 365 — Related to failure of states to comply with Union directions.

Step 4: Final answer.
\[ \boxed{\text{Article 360}} \]