Who has the authority to declare a financial emergency in India?

Correct option is D

Correct Answer: (d) The President

Explanation:
The President of India has the authority to declare a financial emergency under Article 360 of the Indian Constitution. This can be done if the President is satisfied that the financial stability or credit of India or any part of its territory is under threat.

Once proclaimed, the financial emergency must be approved by both Houses of Parliament within two months. The proclamation remains in force until it is revoked by the President.

Effects of a Financial Emergency:

1. The Central Government can direct states to follow financial measures it deems necessary.
2. The salaries of government officials, including judges of the Supreme Court and High Courts, can be reduced.
3. All money bills and financial proposals require the President's approval.

Knowledge Booster:
● India has never declared a financial emergency under Article 360.
● A financial emergency is distinct from national emergencies (Article 352) and state emergencies (Article 356).
● The purpose of such an emergency is to restore financial stability and prevent economic collapse.
● Parliament plays a crucial role in approving and reviewing the emergency.
● The proclamation can be revoked by the President at any time without needing parliamentary approval.

Additional Information:
● The Finance Minister (Option a): Incorrect; the Finance Minister advises but cannot declare an emergency.
● The Parliament (Option b): Incorrect; Parliament approves the proclamation but cannot declare it.
● The Prime Minister (Option c): Incorrect; the Prime Minister may recommend it but cannot declare an emergency.