## CONSTITUTION 360

### CONSTITUTION 360 — Provisions as to financial emergency
- https://unisonlegal.in/statutes/constitution/360

> 360. Provisions as to financial emergency.-(1) If the President is
satisfied that a situation has arisen whereby the financial stability or credit of
India or of any part of the territory thereof is threatened, he may by a
Proclamation make a declaration to that effect.
4[(2) A Proclamation issued under clause (1)-
(a) may be revoked or varied by a subsequent Proclamation;
(b) shall be laid before each House of Parliament;

1. Ins. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 40 (w.e.f. 20-6-1979).
2. Added by the Constitution (Forty-second Amendment) Act, 1976, s. 53 (w.e.f. 3-1-1977).
3. Ins. by the Constitution (Fifty-ninth Amendment) Act, 1988, s. 3 (w.e.f. 30-3-1988) and
ceased to operate on the expiry of a period of two years from the commencement of that
Act, i.e. 30th day of March, 1988.
4. Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 41, for cl. (2)
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(c) shall cease to operate at the expiration of two months, unless
before the expiration of that period it has been approved by resolutions of
both Houses of Parliament:
Provided that if any such Proclamation is issued at a time when the House
of the People has been dissolved or the dissolution of the House of the People
takes place during the period of two months referred to in sub-clause
(c), and if a resolution approving the Proclamation has been passed by the
Council of States, but no resolution with respect to such Proclamation has been
passed by the House of the People before the expiration of that period, the
Proclamation shall cease to operate at the expiration of thirty days from the date
on which the House of the People first sits after its reconstitution unless before
the expiration of the said period of thirty days a resolution approving the
Proclamation has been also passed by the House of the People.]
(3) During the period any such Proclamation as is mentioned in clause
(1) is in operation, 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 directions, and to the giving of such other directions as the
President may deem necessary and adequate for the purpose.
(4) Notwithstanding anything in this Constitution-
(a) any such direction may include-
(i) a provision requiring the reduction of salaries and allowances of
all or any class of persons serving in connection with the affairs of a
State;
(ii) a provision requiring all Money Bills or other Bills to which the
provisions of article 207 apply to be reserved for the consideration of
the President after they are passed by the Legislature of the State;
(b) it shall be competent for the President during the period any
Proclamation issued under this article is in operation to issue directions
for the reduction of salaries and allowances of all or any class of persons
serving in connection with the affairs of the Union including the Judges
of the Supreme Court and the High Courts.
1[(5)
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1. Ins. by the Constitution (Thirty-eighth Amendment) Act, 1975, s. 8 (with retrospective
effect) and omitted by the Constitution (Forty-fourth Amendment) Act, 1978, s. 41
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PART XIX
MISCELLANEOUS