Emergency and Centre-State Relations · Financial Emergency (Article 360)
Q1. Which article of the Indian Constitution deals with Financial Emergency?
- (a) 352
- (b) 356
- (c) 360
- (d) 365
Answer & solution
Answer: (c) 360
Correct Answer: 360 — Option (c)
Article 360 of the Indian Constitution provides for the proclamation of a Financial Emergency. The President can proclaim a Financial Emergency if he/she is satisfied that the financial stability or credit of India or any part of its territory is threatened. During Financial Emergency, the President can direct states to observe financial propriety and can reduce the salaries of all government servants including judges of the Supreme Court and High Courts. Notably, a Financial Emergency has never been proclaimed in India.
Option (a) 352 — Incorrect: Article 352 deals with National Emergency (proclaimed in cases of war, external aggression, or armed rebellion).
Option (b) 356 — Incorrect: Article 356 deals with President's Rule (State Emergency), imposed when the constitutional machinery in a state fails.
Option (d) 365 — Incorrect: Article 365 deals with the effect of failure to comply with, or to give effect to, directions given by the Union to States; it is related to President's Rule grounds, not Financial Emergency.
Article 360 of the Indian Constitution provides for the proclamation of a Financial Emergency. The President can proclaim a Financial Emergency if he/she is satisfied that the financial stability or credit of India or any part of its territory is threatened. During Financial Emergency, the President can direct states to observe financial propriety and can reduce the salaries of all government servants including judges of the Supreme Court and High Courts. Notably, a Financial Emergency has never been proclaimed in India.
Option (a) 352 — Incorrect: Article 352 deals with National Emergency (proclaimed in cases of war, external aggression, or armed rebellion).
Option (b) 356 — Incorrect: Article 356 deals with President's Rule (State Emergency), imposed when the constitutional machinery in a state fails.
Option (d) 365 — Incorrect: Article 365 deals with the effect of failure to comply with, or to give effect to, directions given by the Union to States; it is related to President's Rule grounds, not Financial Emergency.