Home The Constitution Part XVIII Article 360

Art. 360 Part XVIII: Emergency Provisions

Provisions as to Financial Emergency

Exact text — Constitution of India

(1) If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened, he may by a Proclamation make a declaration to that effect. (3) During the period any such Proclamation... is in operation, the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety as may be specified in the directions, and to the giving of such other directions as the President may deem necessary and adequate for the purpose... (4) Notwithstanding anything in this Constitution—(b) it shall be competent for the President during the period any Proclamation issued under this article is in operation to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of a State [and, per a further provision, of Union officials and judges too, subject to specific constitutional protections].

In Plain English

What this Article actually means

This Article gives the President power to declare a Financial Emergency if India's financial stability or credit is genuinely threatened — allowing directions to states on financial discipline, and even authorising salary reductions for government employees (and, notably, judges — though subject to specific constitutional protections on judicial independence). As of 2026, this power has never actually been invoked in India's history, unlike the other two Emergency types.

Why This Matters To You

How it shows up in everyday life

This is the least-used but potentially most economically disruptive Emergency power in the Constitution — its very existence as an available (if unused) tool reflects the framers' concern about protecting India's financial system from genuine crisis, even though the country has managed every economic downturn since 1950 without formally invoking it.

Read alongside this one

Art. 352 — Proclamation of National Emergency Art. 265 — No Tax Without Authority of Law

Frequently Asked

Quick answers about Article 360

Has India ever declared a Financial Emergency?

No — as of 2026, it has never been invoked, even during severe economic crises like 1991's balance-of-payments crisis, which was managed through other economic policy measures instead.

Could this power ever be used to cut judges' salaries?

The Article does contemplate directions affecting salaries broadly during a Financial Emergency, though this would need to be reconciled with the Constitution's separate, strong protections for judicial independence — a genuinely untested scenario given this power's complete non-use to date.

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The text above reproduces Article 360 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.