The President acquires the following extraordinary powers when the President’s Rule is imposed in a state:
He can take up the functions of the state government and powers vested in the governor or any other executive authority in the state.
He can declare that the powers of the state legislature are to be exercised by the Parliament.
He can take all other necessary steps including the suspension of the constitutional provisions relating to any body or authority in the state.
Therefore, when the President’s Rule is imposed in a state, the President dismisses the state council of ministers headed by the chief minister. The state governor, on behalf of the President, carries on the state administration with the help of the chief secretary of the state or the advisors appointed by the President. This is the reason why a proclamation under Article 356 is popularly known as the imposition of ‘President’s Rule’ in a state. Further, the President either suspends or dissolves the state legislative assembly. The Parliament passes the state legislative bills and the state budget. When the state legislature is thus suspended or dissolved:
the Parliament can delegate the power to make laws for the state to the President or to any other authority specified by him in this regard,
the Parliament or in case of delegation, the President or any other specified authority can make laws conferring powers and imposing duties on the Centre or its officers and authorities,
the President can authorise, when the Lok Sabha is not in session, expenditure from the state consolidated fund pending its sanction by the Parliament, and
the President can promulgate, when the Parliament is not in session, ordinances for the governance of the state.