Article 360 empowers the president to proclaim a 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
Parliamentary approval and duration:
- A proclamation approving the financial emergency should be approved by the Parliament through a simple majority within two months. If the LS is not in session or has been dissolved then the proclamation continues until 30 days from the first sitting of the LS after its reconstitution, provided RS has approved it in the meantime
- Once approved by the parliament, the financial emergency continues indefinitely till it is revoked. Implying, there is no maximum prescribed maximum period for its operation and there is no repeated need for parliamentary approval for its continuation
- President can discontinue this emergency by passing another proclamation to this effect. Such a proclamation does not require the parliamentary approval.