No move to declare financial emergency: Nirmala Sitharaman

New Delhi: As the number of coronavirus cases in India hiked to 500 today, Finance Minister Nirmala Sitharaman announced a slew of measures. "No move to impose financial emergency as was claimed by some reports," Sitharaman said while addressing the media.

A financial emergency is one of the three types of emergency declarations provided in the Indian Constitution. Article 360 of the Constitution empowers the government to ask the president to enforce a financial emergency if a "situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened".

During a financial emergency, "the executive authority of the Union shall extend to the giving of directions to any state..." on financial matters. Article 360 has a provision requiring the reduction of salaries and allowances of all or any class of person serving a State or the Union. Once approved it remains in force till revoked by the President.

India has reported a total of 492 coronavirus cases so far. 10 deaths have been confirmed from Karnataka, Delhi, Mumbai, Punjab, Bihar and Kolkata. Almost 80% of the Indian companies have extended work-from-home facility for its employees. Foreign investors pulled out 1.08 lakh crore rupees from Indian market in just 15 trading sessions.