The Role of Parliament on Financial Affairs during Emergency

Q. Discuss the role of the Parliament on financial affairs when Proclamation of Emergency is in operation

Ans.

When a National Emergency is in operation under Art. 352, the Parliament has the power to make laws conferring powers and imposing duties on any matter enumerated in the State List as per the provision of Art. 353.

According to Art. 354, the President may, while a proclamation of Emergency is in opration, by order direct that all or any of the provisions of Art. 268 to 279 shall for such period cease to operate or shall be effective with such exceptions or modification as he thinks fit.

If the President of India is satisfied, that a situation has arisen whereby the financial stability or credit of India is threatend, he may by a proclamation, make a declaration to that effect.

When a Financial Emergency is in operation under Art. 360, the President shall extent directions to any State to observe such canons (rules) of financial propriety (rightness) as may be specified in the directions.

Any such direction may include -

a ) i > a provision requiring the reduction of salaries and allowances of all or class of persons serving in connection with the affairs of the State;

ii > a provision requiring all Money Bills or other Bills to which the provisions of Art. 207 apply to be reserved for the consideration of the President after they are passed by the State Legislature,

b ) it shall be competent for the President during the period, any proclamation issued under this Article to reduce the salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of Supreme Court and High Court.