Shakti DubeyAIR 1 · CSE 2024 · 181 wordsTheir whole copy
Opening · a definition
A-360 of Indian constitution provides for provision related to Financial emergency in the country arising out of any external or internal economic crisis.
Body · points
Analysis of A-360
(1) Constitution empowers President to declare financial emergency (2) The Bill must be passed by both houses of parliament within two months by simple majority (3) No provision mentioned related to its revocation (4) In such cases the centre becomes empowered to guide the states on financial matters. (5) This can lead to decrease in Salary of government officials including High court judges.
India has faced economic crisis at several instances like-:
↳ 1989- BoP deficit ↳ 1990- BOP crisis ↳ 2008- Great financial crisis ↳ 2020- COVID induced financial challenges.
However A-360 has never be imposed on the nation and has remained a dead letter because-
(1) The financial power in India is highly tilted toward centre's control. (2) Centre uses fiscal policy along with RBI's monetary policy to ensure fiscal prudence. (3) State have cooperated in such condition thereby decreasing chances of confrontation
Close · a summary
Thus- Art 360 has remaind a dead letter