There are 395 articles in the Indian Constitution in total but the provisions of emergency are in a limited form. The Constitution, deals with a number of emergencies and financial emergency is one of them. “A state of emergency refers to a period of governance under an altered constitutional setup that can be proclaimed by the President of India, when he perceives grave threats to the nation from internal and external sources or from financial situations of crisis. Under the advice of the cabinet of ministers and using the powers vested in him largely by Part XVIII of the Constitution of India, the President can overrule many provisions of the constitution, which guarantee fundamental rights to the citizens of India and acts governing devolution of powers to the states which form the federation.” The President can declare three types of emergencies: National emergency, State emergency and Financial emergency. Till now Financial emergency has not been declared in India even once.Financial Emergency basically means that, when the President is satisfied that a situation has arisen whereby the financial stability or credit of India, or any part thereof, is threatened, he may by proclamation make a proclamation to that effect. financial emergency can be declared if and only if the President is fully satisfied about its need in the situation concerned. Also, it is not that this type of emergency has some speciality attached to it, rather the proclamation in this case also should be approved by Parliament as in the other two cases of emergency. During the financial emergency, "the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety as may be specified in the direction" or any other directions which the President may deem necessary for the purpose. Such directions may include those requiring the reduction of salaries and allowances of Government servants and even those...
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