Which of the following types of emergencies is declared under Article 360 of the Indian Constitution?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Financial Emergency.
Article 360 of the Indian Constitution empowers the President to declare a Financial Emergency if the country’s financial stability or credit is threatened. During such an emergency, the Union government can give directions to states on financial matters, reduce the salaries of government employees (including judges), and require all money bills to be reserved for the President’s consideration. Although provisions exist, no Financial Emergency has been declared in India so far. This mechanism ensures economic discipline and safeguards the nation’s fiscal health during severe financial crises.