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.