Refer Report
In the history of the world The year 1929 was notable for the Great Depression. After World War I, the economic situation around the world was getting worse. Industrial production began to decline. Consumer demand decreased. Unemployment reached an all-time high. Poverty increased. In the year 1929, the situation became very dire. From there, the waves of recession continued for the next ten years. The end result of this is World War II. During this Great Depression, the National Recovery Act (1933) was passed in America. This Act gave special powers to the President in view of the economic crisis caused by the Great Depression. This law was challenged in the US Supreme Court. It was asserted that there is no need to give such special powers to the President. The court also declared this law unconstitutional. As a result, it became difficult for the President to take any important decision during the financial crisis. In the Constituent Assembly, Dr. Babasaheb Ambedkar had said. This provision gives undue powers to the President. Also, this means that the state governments are weak to handle financial crises. H. N. Kunzru said this provision threatens the financial autonomy of the states. Also, some members were of the opinion that it is wrong to give such special powers to the President on the rough basis that there is only an economic risk, a dire situation; But the amendments suggested by him were not approved. Finally the provision for financial emergency was shaped.
Accordingly, in case of economic crisis, the President can declare a financial emergency by circumventing the federal provisions. Such a provision is in Article 360. In order to declare such an emergency, the President must be convinced of the financial crisis. The 44th Amendment underlines that even this decision of the President can be subject to judicial review. A financial emergency declared by the President requires the approval of both the Houses of Parliament. This approval must be obtained within two months. After the approval of both Houses, this financial emergency can continue for any length of time. It often does not require the approval of Parliament.
After the imposition of financial emergency, the Central Government can give any direction to the State Government in financial matters. Generally, the separation of powers between the Center and the States in economic matters under normal circumstances is abolished. Therefore, the central government can reduce the salary of the state government employees. may reduce or cancel the allowances they receive. Money Bills passed by the State Legislature may be reserved for consideration by the President. State governments may have to send financial bills for President’s assent. Salaries and allowances of High Court and Supreme Court Judges may be reduced. Overall, during this period, the center had complete control over the state in financial matters. Many episodes of financial crisis have hit India. Even in 1991, the crisis got worse. At that time, India adopted a new open, liberalized economic policy, but India has never declared an economic emergency. Although it is true that this economic emergency threatens the federal system, the economic autonomy of the state is compromised, such provisions are needed to take very important and fundamental decisions in difficult times. Effective and efficient governance at the policy level is required to avoid such economic crisis on the states.
Dr. Sriranjan returned
poetshriranjan@gmail. Com
Source: Marathi