If the President is satisfied that
there is an economic situation in which the
financial stability or credit of India is threatened,
he or she can declare financial emergency under
Article 360 of the Indian Constitution. Such an
emergency must be approved by the Parliament
within two months. It has never been declared.a
Such a situation had arisen but was avoided by
putting the gold assets of India as collateral for
foreign credit. In case of a financial emergency,
the President can reduce the salaries of all
government officials, including judges of the
Supreme Court and High Courts. All money bills
passed by the State legislatures are submitted to
the President for his approval. He can direct the
state to observe certain principles (economy
measures) relating to financial matters.