During a financial emergency, the executive authority of the union exercises control over state finances through the following measures: (1) It can issue directions to state to observe certain cannons of financial propriety (2) It can ask the states to reserve their money bills for the consideration of the president (3) 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:

Option A: (1) and (2)

Option B: Only (1)

Option C: (2) and (3)

Option D: (1), (2) and (3)

Correct Answer

Option: d

Explanation

President can impose financial emergency if he is satisfied that a situation has arisen due to which financial stability or credit of India or any part of it is in danger. The proclamation must be approved by both the houses of Parliament within two months of its issue. The effects of Financial emergency are that President can direct the reduction of salaries and allowances of any dass of employees serving the state and postponement of the salary of Public servants amongst other directions.

Sample Mock Tests for Practice

CLAT 2015

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 18 Q. NO. 681 TO 720)

AILET – National Law University Delhi Entrance Test (NLU 2019)

CLAT 2013

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 18 Q. NO. 681 TO 720)

THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 03 Q. NO. 81 TO 120)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 03 Q. NO. 81 TO 120)

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 01 Q.NO. 1 TO 40)

AILET – National Law University Delhi Entrance Test (NLU 2020)

CLAT 2014

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 01 Q. NO. 1 TO 40)

THE INDUSTRIAL DISPUTES ACT, 1947 (PAPER 01 Q. NO. 1 TO 15)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 11 Q. NO. 401 TO 440)

DELHI LOWER JUDICIAL SERVICES 2018-2

THE INDIAN CONTRACT ACT, 1872 (PAPER – 09 Q. NO. 281 TO 315)

THE MUSLIM PERSONAL LAWS (PAPER 01 Q. NO. 1 TO 29)

THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 01 Q. NO. 1 TO 40)

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 06 Q. NO. 201 TO 240)

THE ARBITRATION AND CONCILIATION ACT, 1996 (PAPER 02 Q. NO. 31 TO 60)

SAMPLE PAPER 01

AILET – National Law University Delhi Entrance Test (NLU 2022)

GUJRAT LOWER JUDICIAL SERVICES 2019

THE HIMACHAL PRADESH URBAN RENT CONTROL ACT, 1987 (PAPER 01 Q. NO. 1 TO 30)

THE CONSUMER PROTECTION ACT, 1986 (PAPER 01 Q. NO. 1 TO 13)

DELHI LOWER JUDICIARY 2008

AILET – National Law University Delhi Entrance Test (NLU 2012)

CHHATTISGARH LOWER JUDICIAL SERVICES 2019

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 04 Q. NO. 121 TO 160)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 15 Q. NO. 561 TO 600)

AIBE-XIV-2019 (BCI-SEPT-2019-SET-D) (ALL INDIA BAR EXAM 2019)

MAHARASHTRA LOWER JUDICIAL SERVICES 2019

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 10 Q. NO. 361 TO 400)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 13 Q. NO. 421 TO 455)

MADHYA PARDESH LOWER JUDICIAL SERVICES 2019

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 07 Q. NO. 241 TO 280)

CLAT 2017