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In case of declaration of financial emergency –
Ans. c
- a)All money bills of state compulsorily will be considered and passed only by the parliament.
- b)All the state governments will dissolve and management of the economy will be taken over the union government
- c)It can be passed by a simple majority
- d)All the state assemblies will be put under suspension and laws on the state list will be enacted by parliament
Correct answer is option ''. Can you explain this answer?
Verified Answer
In case of declaration of financial emergency –Ans. ca) All money bil...
Article 360 empowers the president to proclaima Financial Emergency if he is satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened. The 38th Amendment Act of 1975 made the president's satisfaction in declaring a Financial Emergency final and conclusive and not questionable in any court on any ground. But, this provision was subsequently deleted by the 44thAmendment Act of 1978 implying that the satisfaction of the president is not beyond judicial review. A proclamation declaring financial emergency must be approved by both the Houses of Parliament within two months from the date of its issue. However, if the proclamation of Financial Emergency is issued at a time when the Lok Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided the Rajya Sabha has in the meantime approved it. Once approved by both the Houses of Parliament, the Financial Emergency continues indefinitely till it is revoked. This implies two things - (a) There is no maximum period prescribed for its operation; and (b) Repeated parliamentary approval is not required for its continuation. A resolution approving the proclamation of financial emergency can be passed by either House of Parliament only by a simple majority, that is, a majority of the members of that house present and voting. A proclamation of Financial Emergency may be revoked by the president at any time by a subsequent proclamation. Such a proclamation does not require parliamentary approval.
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In case of declaration of financial emergency –Ans. ca) All money bil...
Declaration of Financial Emergency
Financial Emergency is a provision under Article 360 of the Indian Constitution that empowers the President to declare a state of financial emergency in the country if he/she is satisfied that the financial stability or credit of India or any part of its territory is threatened. The declaration of a financial emergency gives the central government certain extraordinary powers to deal with the economic crisis.
Effects of the Declaration
When a financial emergency is declared, the following effects take place:
1. Dissolution of State Governments: The state governments are not dissolved automatically upon the declaration of a financial emergency. However, the management of the economy of the state is taken over by the central government. The President can issue directions to the state governments on financial matters and the state governments are bound to comply with these directions.
2. Passing of Money Bills: All money bills of the state are compulsorily considered and passed only by the Parliament. The state legislatures are suspended and the Parliament takes up the responsibility of enacting laws related to the state list.
3. Simple Majority: The declaration of a financial emergency can be passed by a simple majority in both houses of Parliament. It does not require a special majority or the President's prior approval.
4. Suspension of State Assemblies: During a financial emergency, the state assemblies can be put under suspension. The President can assume all the functions of the state government and the state's executive powers are exercised by the Governor on behalf of the President.
Correct Answer
The correct answer is option b) All the state governments will dissolve, and the management of the economy will be taken over by the central government. This is because the declaration of a financial emergency gives the central government the power to take over the management of the economy of the states. The state governments are not dissolved automatically, but their powers and functions are effectively taken over by the central government.
Financial Emergency is a provision under Article 360 of the Indian Constitution that empowers the President to declare a state of financial emergency in the country if he/she is satisfied that the financial stability or credit of India or any part of its territory is threatened. The declaration of a financial emergency gives the central government certain extraordinary powers to deal with the economic crisis.
Effects of the Declaration
When a financial emergency is declared, the following effects take place:
1. Dissolution of State Governments: The state governments are not dissolved automatically upon the declaration of a financial emergency. However, the management of the economy of the state is taken over by the central government. The President can issue directions to the state governments on financial matters and the state governments are bound to comply with these directions.
2. Passing of Money Bills: All money bills of the state are compulsorily considered and passed only by the Parliament. The state legislatures are suspended and the Parliament takes up the responsibility of enacting laws related to the state list.
3. Simple Majority: The declaration of a financial emergency can be passed by a simple majority in both houses of Parliament. It does not require a special majority or the President's prior approval.
4. Suspension of State Assemblies: During a financial emergency, the state assemblies can be put under suspension. The President can assume all the functions of the state government and the state's executive powers are exercised by the Governor on behalf of the President.
Correct Answer
The correct answer is option b) All the state governments will dissolve, and the management of the economy will be taken over by the central government. This is because the declaration of a financial emergency gives the central government the power to take over the management of the economy of the states. The state governments are not dissolved automatically, but their powers and functions are effectively taken over by the central government.
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In case of declaration of financial emergency –Ans. ca) All money bills of state compulsorily will be considered and passed only by the parliament.b) All the state governments will dissolve and management of the economy will be taken over the union governmentc) It can be passed by a simple majorityd) All the state assemblies will be put under suspension and laws on the state list will be enacted by parliamentCorrect answer is option ''. Can you explain this answer?
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In case of declaration of financial emergency –Ans. ca) All money bills of state compulsorily will be considered and passed only by the parliament.b) All the state governments will dissolve and management of the economy will be taken over the union governmentc) It can be passed by a simple majorityd) All the state assemblies will be put under suspension and laws on the state list will be enacted by parliamentCorrect answer is option ''. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In case of declaration of financial emergency –Ans. ca) All money bills of state compulsorily will be considered and passed only by the parliament.b) All the state governments will dissolve and management of the economy will be taken over the union governmentc) It can be passed by a simple majorityd) All the state assemblies will be put under suspension and laws on the state list will be enacted by parliamentCorrect answer is option ''. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case of declaration of financial emergency –Ans. ca) All money bills of state compulsorily will be considered and passed only by the parliament.b) All the state governments will dissolve and management of the economy will be taken over the union governmentc) It can be passed by a simple majorityd) All the state assemblies will be put under suspension and laws on the state list will be enacted by parliamentCorrect answer is option ''. Can you explain this answer?.
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