Financial Emergency in India
The Constitution of India empowers the President to proclaim a state of financial emergency if the financial security or stability of the country is badly shaken.
The normal duration of financial emergency is two months unless renewed by the Parliament. And its effects are:
- The Union government may direct the States to observe the canons of financial property.
- After the Money bills are passed by the Legislature of the State, they are reserved for the final approval of the President.
- And the President may reduce the salaries of the government employees and the Court Judges.