What are the effects of financial emergency?

Effects of Financial Emergency:

• The Union Government may give direction to any of the States regarding financial matters.
• The President may ask the States to reduce the salaries and allowances of all or any class of persons in government service.
• The President may ask the States to reserve all the money bills for the consideration of the Parliament after they have been passed by the State Legislature.
• The President may also give directions for the reduction of salaries and allowances of the Central Government employees including the Judges of the Supreme Court and the High Courts.

Further Reading:

• Financial Emergency [Article 360]
• Article 356 – President’s Rule