Actual Article
Article 354: Application of provisions relating to the distribution of revenues while a Proclamation of Emergency is in operation
(1) The President may, by order, direct that all or any of the provisions of Articles 268 to 279 shall, during such period as may be specified in the order, have effect subject to such exceptions or modifications as he thinks fit.
(2) Every order made under clause (1) shall, as soon as may be after it is made, be laid before each House of Parliament.
UPSC Notes for Article 354
Explanation:
- Presidential Power: Article 354(1) empowers the President to modify the financial provisions related to the distribution of revenues between the Union and the States during an emergency.
- Parliamentary Oversight: Article 354(2) requires that any such order made by the President must be laid before both Houses of Parliament as soon as possible, ensuring legislative oversight.
Key Points:
- Financial Adjustments: Allows the President to adjust the financial arrangements between the Union and States to address the exigencies of an emergency.
- Legislative Scrutiny: Ensures that modifications to financial provisions are subject to parliamentary scrutiny, maintaining a check on executive power.
Important Cases and Commissions Related to Article 354
Cases:
- No landmark Supreme Court cases specifically interpreting Article 354, but it is relevant in discussions on financial adjustments during emergencies and the balance of financial powers between the Union and States.
Commissions:
- Finance Commission: Reviews and recommends the distribution of revenues between the Union and the States, providing a framework that may be adjusted under Article 354 during emergencies.
Important Reports Related to Article 354:
- Finance Commission Reports: Discuss the financial arrangements between the Union and States and may provide insights into potential adjustments during emergencies.
Previous Year Prelims Questions Related to Article 354
- (UPSC Prelims 2016) What does Article 354 of the Indian Constitution empower the President to do during an emergency?
A. Suspend fundamental rights
B. Modify the financial provisions related to revenue distribution between the Union and States
C. Amend the Constitution
D. Dissolve the State Legislatures Correct Answer: B. Modify the financial provisions related to revenue distribution between the Union and States - (UPSC Prelims 2018) What is required after the President makes an order under Article 354(1) regarding financial provisions during an emergency?
A. The order must be approved by the Prime Minister
B. The order must be laid before each House of Parliament
C. The order must be ratified by the Supreme Court
D. The order must be approved by the Finance Commission Correct Answer: B. The order must be laid before each House of Parliament
Previous Year Mains Questions Related to Article 354
- Mains 2016: “Discuss the implications of Article 354 on the financial autonomy of States during an emergency. How does this article impact the distribution of revenues between the Union and States?”
- Mains 2019: “Evaluate the safeguards provided by the Indian Constitution to prevent the misuse of Article 354 during an emergency. How effective are these safeguards in maintaining a balance between the financial powers of the Union and the States?”
Additional Insights:
- Financial Flexibility: Article 354 provides the Union Government with the flexibility to adjust financial arrangements to meet the needs of an emergency, ensuring adequate resources are available.
- Parliamentary Oversight: The requirement to lay orders before Parliament ensures that there is oversight and accountability in the use of financial powers during emergencies.
- Balancing Act: Highlights the need to balance the financial powers of the Union and States, ensuring that adjustments during emergencies do not undermine the financial autonomy of States.
Understanding Article 354 is crucial for UPSC aspirants as it provides insights into the constitutional provisions for modifying financial arrangements during emergencies, highlighting the balance between central financial control and state financial autonomy. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the mechanisms ensuring effective financial management and legislative oversight within the Indian Constitution.