Explain any two effect of the financial emergency
Answers
When Financial Emergency is in action, the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety as may be specified in the directions, and to the giving of such other directions as the President may deem necessary and adequate for the purpose.
When Financial Emergency is in operation, the directions given by or powers assumed by Union or President are as follows:-
A provision requiring the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of a State.
A provision requiring all Money Bills or other Bills to which the provisions of article 207 apply to be reserved for the consideration of the President after they are passed by the Legislature of the State.
It shall be competent for the President to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of the Supreme Court and the High Courts.