The correct answer is: A. Article 360
Article 360 of the Constitution of India deals with the Proclamation of Financial Emergency. It states that if the President is satisfied that a grave financial emergency exists whereby the financial stability or credit of India is threatened, he may by Proclamation, make a declaration to that effect.
The Proclamation shall be laid before each House of Parliament and shall cease to operate on the expiration of a period of one month from the date of its publication, unless before the expiration of that period it has been approved by both Houses of Parliament.
If the Proclamation has been approved by both Houses of Parliament, it shall cease to
operate on the expiration of a period of six months from the date of its publication, unless before the expiration of that period it has been renewed by a resolution of both Houses of Parliament.The President may, at any time, by Proclamation, revoke the Proclamation issued under this Article.
The effect of a Proclamation of Financial Emergency is that:
- The President may, by order, suspend the operation of all or any of the provisions of Articles 19(1)(f), (g), (h), (i), (j), (k), (l) and (m) and Article 301.
- The President may, by order, make such provisions as he deems necessary or expedient for the purpose of dealing with the situation arising out of the Proclamation.
- The President may, by order, authorise any expenditure from the Consolidated Fund of India, which would not be admissible under Article 268.
- The President may, by order, suspend the operation of all or any of the provisions of the Constitution relating to the distribution of revenues between the Union and the States.
The Proclamation of Financial Emergency is a drastic measure and should be resorted to only in the rarest of cases. It is important to note that the Proclamation of Financial Emergency does not suspend the operation of the fundamental rights guaranteed under Article 21 of the Constitution.