Chapter 19: FINANCIAL EMERGENCY
If president is satisfied that
the financial stability or credit of India or any part of
the state is in
danger than he can issue a proclamation declaring
satisfaction is subject to judicial review.
Such a proclamation has to be
approved by a simple majority in both houses.
Sabha is dissolved Rajya Sabha can approve it but Lok
to approve too within 30 days of first sitting after its
Effect of the Financial Emergency
Once approved it continues
indefinitely [no max period] without repeated legislative
can revoke this proclamation anytime; this doesn’t need
the financial emergency, centre can ask states to observe
canons of financial
propriety. It can direct that money bills or financial
bills of state should
need president’s assent.
President can also direct a reduction of
government servants under union or state. These include
judges of SC and HC’s.
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