The Indian Constitution provides for fundamental rights as a cornerstone of the democratic framework. These rights, enshrined in Part III of the Constitution, are essential for the protection and preservation of individual liberties. However, during a financial emergency, certain provisions allow for the modification or suspension of specific fundamental rights. The primary constitutional provision related to financial emergencies is Article 360
- Article 360 – Provisions as to financial emergency:
- Article 360 of the Indian Constitution empowers the President to proclaim a state of financial emergency if he/she is satisfied that the financial stability or credit of India or any part thereof is threatened. Once such a proclamation is made, the President is authorized to issue directions for the reduction of salaries and allowances of all or any class of persons serving in the civil services, including judges of the Supreme Court and high courts.
- Impact on Fundamental Rights:
- The proclamation of a financial emergency under Article 360 does not automatically suspend or abolish fundamental rights. However, it provides specific powers to the President to issue directions that may affect certain rights, particularly the right to livelihood, which is closely linked to the reduction of salaries and allowances.
- Article 19 – Freedom of Speech and Expression:
- While Article 360 does not explicitly impact the right to freedom of speech and expression (Article 19), economic policies and measures taken during a financial emergency might indirectly affect public discourse and criticism. Austerity measures or economic policies may limit certain forms of expression.
- Judicial Review:
- Any measures taken during a financial emergency, including the reduction of salaries and allowances, would be subject to judicial review. The judiciary plays a crucial role in assessing the constitutionality and reasonableness of the actions taken during a financial emergency. Judicial scrutiny ensures that fundamental rights are not unduly compromised and that any restrictions imposed are in line with constitutional principles.
- Limitations on Certain Rights:
- While the proclamation of a financial emergency does not automatically suspend fundamental rights, certain measures may indirectly limit their exercise. For example, if there are restrictions on public gatherings or movements to address economic concerns, they may impact the right to assemble peacefully.
- Duration and Revocation:
- The imposition of a financial emergency is subject to parliamentary approval and is not intended to be a permanent state. The proclamation must be laid before each House of Parliament and requires approval within two months. The financial emergency ceases to operate unless it is approved by Parliament.
It’s important to note that the provisions related to financial emergencies are designed to be exceptional and are subject to strict constitutional limitations. The principles of reasonableness, proportionality, and adherence to constitutional values are expected to guide the government’s actions during such a period.
