Financial Emergency in India
Financial emergency in imposed in India for situations such as high drop in currency, high growth in public debt etc. It is declared when there is threat to financial stability of the country.
All the rules and regulations of Financial emergency are mentioned in the article 360 of Indian Constitution. President declare this emergency during these situations.
Effect of Financial Emergency on people of India
There are certain effects on the people of India during the Financial Emergency situation.
- President reduces the salaries during financial emergency or allowances given by central or state government.
- The President can also direct the states to reduce their expenditures or increase their revenues.
- The President can also require the states to reserve all money bills and other financial bills for his consideration.
- Like other emergency states, financial emergency should also be placed to both house of parliament as soon as possible. It should be approved with a majority vote till the expiration of two months. It can also be revoked by president or if passed by either house of parliament.
- India has never faced a situation of financial emergency so far. It has only come close to it during some economic crises, such as the balance of payments crisis in 1991 and the global financial crisis in 2008.
Effect of State Emergency on the people of India
- Government may impose restrictions on the banks deposits, withdrawls, functioning and currency movements.
- Government actions can affect the value of assets and investments of citizens.
- The value of real estate assets may fluctuate during financial emergency.
- The government will reduce the amount which they spend on social welfare programs and weaker sections of society.
- The government can reduce the number of people in government services.
Emergency in India, Reason, History and Types
The emergency in India was one of the most controversial periods in its history. It was Indira Gandhi’s decision to impose an Indian Emergency, which was agreed upon by the President of India, the Cabinet, and the Parliament from July to August 1975.
A state of Emergency refers to a special situation where the President of India can change the normal functioning of government during some crisis situations. Every country can have some situation when the normal rules cannot handle the country.
In this article, we go through the states of emergency in India, the process of emergency declaration, emergency in the Indian constitution, the history of national emergency in India, and their effects on the people in detail.
Emergency in India
Table of Content
- Emergency in India
- National Emergency in India
- Emergency in Indian Constitution
- Three Types of Emergency in India
- 1. National Emergency in India
- 2. State Emergency in India
- 3. Financial Emergency in India
- Emergency Declared in India
- First Emergency in India (1962 to 1968)
- National Emergency in India 1971
- National Emergency in India 1975