Important Legal Definitions
Explore legal terms, clear definitions and practical examples.
Financial Emergency (Article 360)
Constitutional & Public Law Doctrines
Definition
An extraordinary constitutional power empowering the President to issue a proclamation if satisfied that a situation has arisen whereby the financial stability or credit of India or any part of its territory is threatened, allowing the Union to direct states on financial propriety and reduce public salaries.
Example
Under a proclamation of Financial Emergency, the Union Executive can direct a State to reserve all money bills passed by the State Legislature for the consideration of the President.