Discussion
Which of the following is/are the consequence(s) of invoking Article 360, declaration of a financial emergency?
1. The President may order the States to reduce the salaries and allowances of all or any class of employees serving in connection with the State affairs.
2. Money Bills or other financial bills passed by the State Legislature are not required to be reserved for the consideration of the President.
3. The President can issue directions for the reduction of salaries and allowances of all or any class of employees serving in connection with the affairs of the Union, including the Judges of the Supreme Court and the High Courts.
4. Money Bills or other financial bills are to be reserved for the consideration of the President after they are passed by the Legislature of the State.
Select the correct answer using the codes given below.
Answer: A
The consequences are Only 1, 3 and 4.
Under Article 360, during a financial emergency, the Union may direct the States to reduce the salaries and allowances of their employees (1), and may require Money Bills and other financial bills passed by the State Legislature to be reserved for the President's consideration (4). The President may also direct reductions in the salaries and allowances of Union employees, including judges of the Supreme Court and High Courts (3).
Statement 2 says the opposite of statement 4 and is wrong.
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