Article 360 of Constitution of India "Provisions as to financial emergency"
(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.
(2) A Proclamation issued under clause (1) -
(a) may be revoked or varied by a subsequent Proclamation;
(b) shall be laid before each House of Parliament;
(c) shall cease to operate at the expiration of two
months unless before the expiration of that period it has
been approved by resolutions of both Houses of Parliament:
Provided that if any such Proclamation is issued at a time
when the House of the People has been dissolved or the
dissolution of the House of the People takes place during
the period of two months referred to in sub-clause ?, and if
a resolution approving the Proclamation has been passed by
the Council of States, but no resolution with respect to
such Proclamation has been passed by the House of the People
before the expiration of that period, the Proclamation shall
cease to operate at the expiration of thirty days from the
ate on which the House of the People first sits after its
reconstitution, unless before the expiration of the said
period of thirty days a resolution approving the
Proclamation has been also passed by the House of the
People.
(3) During the period any such Proclamation as is mentioned
in clause (1) 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-
(a) any such direction may include-
(i) a provision requiring the reduction of salaries and
allowances of all or any class of persons serving in
connection with the affairs of a State;
(ii) a provision requiring all Money Bills or other Bills to
which the provisions of Article 207 apply to be reserved for
the consideration of the President after they are passed by
the Legislature of the State;
(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 the Union including the
Judges of the Supreme Court and the High Courts.