The imposition of a financial emergency in the country or any part of it, can result in
(a) Freezing of expenditure from the Consolidated fund of India.
(b) Imposition of new taxes in the country.
(c) Reduction in salaries and allowances of judges of the Supreme Court.
(d) Devaluation of national currency.

Question

The imposition of a financial emergency in the country or any part of it, can result in
(a) Freezing of expenditure from the Consolidated fund of India.
(b) Imposition of new taxes in the country.
(c) Reduction in salaries and allowances of judges of the Supreme Court.
(d) Devaluation of national currency.

ONLiNE UPSC · Accepted Answer

Under Article 360 of the Constitution, the President can declare a financial emergency if the financial stability or credit of India (or any part thereof) is threatened. During a financial emergency:
1. The salaries and allowances of all government officials, including judges of the Supreme Court and High Courts, can be reduced.
2. Parliament is empowered to control financial matters, including expenditures.
The other options are incorrect because:
(a) Freezing of expenditure from the Consolidated Fund of India is not explicitly mentioned under Article 360.
(b) The imposition of new taxes is a legislative function, not a direct consequence of a financial emergency.
(d) Devaluation of currency is a monetary policy decision and not related to Article 360.

Emergency Provisions

Financial Emergency

Website Link

Test Your Knowledge

Student Resources


M Question 1	⏱ 0
The imposition of a financial emergency in the country or any part of it, can result in (a) Freezing of expenditure from the Consolidated fund of India. (b) Imposition of new taxes in the country. (c) Reduction in salaries and allowances of judges of the Supreme Court. (d) Devaluation of national currency.