Using examples, highlight the distinctions between “holding together federations” and “coming together federations.” (A response of 200 words) (Answer in 200 words)
Model Answer Introduction Financial Emergency, outlined in Article 360 of the Indian Constitution, is one of the three emergencies the President of India can proclaim. Notably, it has never been imposed in independent India. This provision aims to safeguard the nation’s financial stability and crediRead more
Model Answer
Introduction
Financial Emergency, outlined in Article 360 of the Indian Constitution, is one of the three emergencies the President of India can proclaim. Notably, it has never been imposed in independent India. This provision aims to safeguard the nation’s financial stability and creditworthiness during critical situations.
Circumstances for Proclaiming Financial Emergency
According to Article 360, the President may declare a Financial Emergency if they believe that the financial stability or credit of India—or any part thereof—is under threat. This could occur due to various factors, such as:
- Severe fiscal deficits that jeopardize government operations.
- Economic shocks, such as a sharp decline in GDP or global financial crises.
- Insolvency issues affecting key state or central government institutions.
These circumstances necessitate immediate intervention to prevent further economic decline.
Consequences of Financial Emergency
The declaration of a Financial Emergency triggers several important consequences:
- Executive Authority: The central government gains extensive powers to direct states on financial propriety. This includes issuing instructions to ensure compliance with financial norms and regulations.
- Reduction of Salaries: The President can reduce the salaries and allowances of all Central and State government employees, including judges of the Supreme and High Courts. This measure aims to control public expenditure during financial distress.
- Legislative Implications: All Money Bills and financial legislation passed by State Legislatures must be reserved for the President’s consideration. Additionally, the President can direct reductions in salaries for Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs).
- Suspension of Fundamental Rights: While not explicitly stated, the enforcement of the Directive Principles of State Policy may take precedence over Fundamental Rights during a Financial Emergency, allowing for stricter governance measures.
Conclusion
Understanding the provisions and implications of Financial Emergency is vital for grasping the constitutional mechanisms in place to address financial crises in India. While it has never been invoked, the potential consequences could significantly affect government functioning and the economy, emphasizing the need for careful management of public finances.
See less
FEDARALISM IS DIVIDED INTO TWO FORMS i.e. the coming together fedaration and the holding together fedaration . Holding together fedartaion means that when a larger country decides to divide its power and authority in to the member states and the central government . Coming together fedaration on tRead more
FEDARALISM IS DIVIDED INTO TWO FORMS i.e. the coming together fedaration and the holding together fedaration . Holding together fedartaion means that when a larger country decides to divide its power and authority in to the member states and the central government . Coming together fedaration on the other hand means that the wherein the sovereign states they join their hands with other sovereign states in order to form a larger unit . In holding together fedaration the central government has its dominance in the other state constituences and that of the coming together fedaration both the state and the central government has the equal power distribution .
Examples of Holding together fedaration : India and Spain .
Examples of Coming together fedaration : USA and Australia.
See less