Question

explain any two effects of the financial emergency.

Answer 1

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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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Answer 2

• 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.

• The provisions of Financial Emergency is enshrined under Article 360 of the Constitution. This provision is provides a safeguard for Union govt if any threat to financial stability of India. Article 360 empowers Union govt to take control over state govt on every financial matter deals by a state. The Financial Emergency has never imposed in any part of country or Article 360 has never been used till now.