(a) It can issue directions to states to observe certain cannons of financial propriety
(b) It can ask the states to reserve their money bills for the consideration of the President
(c) It can direct the states to reduce the salaries and allowances of all the persons serving in connection with the affairs of the states, including the judges of the Supreme Court and High Courts.
Codes :
Financial Emergency: Union Control Over State Finances
A Financial Emergency can be proclaimed by the President under Article 360 of the Constitution if there is a threat to India's financial stability or credit. During such an emergency, the Union executive gains significant control over state finances.
Analysis of Union's Control Measures
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Statement (a): Financial Propriety Directions
The Union executive can issue directions to states to follow specific principles of financial management. This is explicitly provided for under Article 360(3) of the Constitution. -
Statement (b): Reservation of Money Bills
The Union can direct states to reserve all Money Bills or appropriation Bills passed by the state legislature for the President's consideration. This ensures scrutiny of state financial legislation during the emergency, as per Article 360(3). -
Statement (c): Salary and Allowance Reductions
During a Financial Emergency, the Union executive can direct states to reduce the salaries and allowances of state government employees and officials. This power extends to High Court judges. Additionally, the President's directions can encompass reducing the salaries and allowances of Supreme Court judges, who serve the Union. Therefore, this measure represents a significant control exercised by the Union over personnel costs, impacting state finances.
Based on the analysis of Article 360, all three statements (a), (b), and (c) describe measures through which the executive authority of the Union exercises control over state finances during a Financial Emergency.
Important Questions from Constitution
- Which of the following Constitutional Amendments introduced the Goods and Services Tax (GST) in India?
- Which Article of the Indian Constitution imposes a duty on the Centre to ensure that the Government of every State is carried on under the
provisions of the Constitution? - Which of the following Articles of the Indian Constitution describes the effect of a National Emergency on the Fundamental Rights?
The Constitution of India under______________directs the State policy to secure that childhood and youth are protected against exploitation and against moral and material abandonment.
The "Doctrine of Basic Structure" was recognised by the Supreme Court for the first time in the case of _______ .
