Which of the following can be done during a Financial Emergency? State…
2012
Which of the following can be done during a Financial Emergency?
State Legislative Assemblies can be abolished.
The Union Government can exercise control over the budgets and expenditure of the States.
The salaries of judges of the High Courts and the Supreme Court can be reduced.
The right to constitutional remedies can be suspended.
Select the correct answer from the codes given below.
Answer: D. 2 and 3 — ConceptA Financial Emergency under Article 360 allows the Union to protect financial stability by issuing binding financial directions. Its effects are…
- A.
1, 2 and 3
- B.
2, 3 and 4
- C.
1 and 2
- D.
2 and 3
Attempted by 4 students.
Show answer & explanation
Correct answer: D
Concept
A Financial Emergency under Article 360 allows the Union to protect financial stability by issuing binding financial directions. Its effects are limited to financial administration, salaries and specified money-bill controls; it does not automatically produce the constitutional consequences of other kinds of emergency.
Application
Abolishing State Legislative Assemblies is not an effect authorised by Article 360. The provision concerns financial directions rather than dissolution of a State legislature.
The President may direct a State to observe specified canons of financial propriety and may issue other necessary directions. This permits Union control over the State’s budgetary and expenditure discipline during the proclamation.
A direction may require reduction of salaries and allowances of persons serving the Union or a State. Article 360 expressly includes judges of the Supreme Court and High Courts within the Union-side salary-reduction power.
A Financial Emergency does not authorise suspension of the right to constitutional remedies. Article 359 deals with suspension of the right to move a court for enforcement of specified Fundamental Rights during a National Emergency, subject to constitutional limits.
Cross-check
Statement | Constitutional position |
|---|---|
1 — State Legislative Assemblies | Not an Article 360 consequence |
2 — State budgets and expenditure | Covered through financial-propriety directions |
3 — Salaries of Supreme Court and High Court judges | Expressly covered by the salary-reduction power |
4 — Right to constitutional remedies | Not suspended by Article 360 |
Therefore, statements 2 and 3 are applicable, so the accepted code is “2 and 3”.