Q. During the operation of a Financial Emergency, the executive authority of the Centre extends to which of the following?
1.Issuing directions to any state to follow specified financial propriety norms
2.Issuing directions for the reduction of salaries of persons serving in the state
3.Reserving all money bills passed by the state legislature for the consideration of the President
Select the correct answer using the code given below:
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: D
Notes:

Explanation:

Under Article 360 of the Indian Constitution, when a Financial Emergency is proclaimed, the executive authority of the Centre becomes significantly expanded over the states. The following consequences are specifically mentioned:

  • The Centre can direct any state to observe specified principles or “canons” of financial propriety. This means states must follow certain financial rules and policies laid down by the Centre during the emergency.
  • The Centre can direct states to reduce the salaries and allowances of all or any class of persons serving in connection with the affairs of the state, including government employees.
  • The President can direct that all Money Bills or other financial bills passed by the state legislature be reserved for his consideration, meaning they cannot become law without presidential assent.

Source: Laxmikant

Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants

Subscribe to get the latest posts sent to your email.

Blog
Academy
Community