Explain any two effects of the Financial Emergency.
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》The two effects of the Financial Emergency are as:-
■ It provides the directions of reduction of salaries and allowances of all or any class of persons given or powers assumed by Union or President and gives President the complete power over economic and financial matters to remove difficulties.
■ With action of financial emergency, the executive authority of the Union shall extend to the giving of directions to any State to observe such canons of financial propriety and to the giving of such other directions as the President may deem necessary.
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Financial emergency disrupts the initial budget, an individual may be affected when financial emergency arises since is initial budget on expenditure is affected, Financial emergency also delays development activities this is because the funds set aside for development purpose may be used to serve for the emergencies at hand.