Q: Elaborate Financial Emergency under Indian Constitution ?
Ans: Financial Emergency
As per Article 360, a Proclamation of Financial Emergency may be issued, if the President is of the opinion that such a situation exists where the financial stability of India or any part of the territory is threatened.
Duration
The Proclamation of Financial Emergency shall cease to operate after 2 months unless it has been approved by both the Houses of Parliament. In a case where during the issuance of Proclamation the Lok Sabha has been dissolved or its dissolution takes place within the said period of 2 months and the Rajya Sabha has approved the proclamation but the Lok Sabha has not approved it. Then, such a proclamation shall not operate unless before the expiry of 30 days Lok Sabha has passed a resolution approving proclamation.
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