Question

Which one of the following steps can not be taken by the President during the Financial Emergency?

• A. He can direct the Union and State Governments to observe such canons of financial propriety as he deems desirable
• B. He can suspend the Fundamental Rights of the Indian citizens
• C. He can order reduction of salaries and allowances of all civil servants
• D. He can order the reduction of the salaries of the Supreme Court and High Court judges.

Answer 1

Answer: (B)

He can suspend the Fundamental Rights of the Indian citizens

Under Article 360 of the Constitution, Financial Emergency can be declared by the President if he is satisfied that financial stability or credit of India or any state is threatened then he can issue a proclamation on declaring Financial Emergency. It can remain in operation for an indefinite period and can be revoked by President at any time. The Center becomes empowered to ask states to observe canons of financial propriety. President can direct reduction in salary of government servant under Union and State including judges of Supreme Court and High Court. Financial emergency has not been proclaimed in India so far.