How many times 'Financial Emergency' has been declared in India?

The correct answer is Zero.

Key Points

• Financial Emergency in India is defined under Article 360 of the Indian Constitution.
• Article 360 empowers the President of India to declare a Financial Emergency if the financial stability or credit of India is threatened.
• Since the adoption of the Indian Constitution on 26th January 1950, a Financial Emergency has never been declared in India.
• Unlike National Emergency (Article 352) or President's Rule (Article 356), Financial Emergency is an exceptional provision, yet unused.
• If declared, measures under Financial Emergency include controlling government expenditure and directing states to observe financial propriety.

Additional Information

• Constitutional Provisions for Emergency:
  • India's Constitution provides for three types of emergencies: National Emergency (Article 352), President's Rule (Article 356), and Financial Emergency (Article 360).
  • These emergencies grant extraordinary powers to the Union government to maintain sovereignty, stability, and financial discipline.
• Financial Emergency Impact:
  • During Financial Emergency, the President may direct states to adhere to financial norms prescribed by the Union government.
  • Salaries and allowances of government officials, including judges, may be reduced during such an emergency.
• Historical Context:
  • Although Financial Emergency has never been declared, fears of its invocation arose during economic crises such as the balance of payments crisis in 1991.
  • The provision ensures preparedness for extreme financial instability.
• Comparison with Other Emergencies:
  • National Emergency has been declared thrice (1962, 1971, and 1975).
  • President's Rule has been imposed multiple times in Indian states.
  • Financial Emergency remains unused, highlighting India's financial resilience.