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Question

When a financial emergency is proclaimed _____________________.
  1. A repayment of government debts will stop
  2. Payment of salaries to public servants will be postponed.
  3. Salaries and allowances of any class of employees may be reduced
  4. Union budget will not be presented.

A
Salaries and allowances of any class of employees may be reduced
B
A repayment of government debts will stop
C
Payment of salaries to public servants will be postponed.
D
Union budget will not be presented.
Solution
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Article 360 of the Constitution of India provides for the provision as to financial emergency. It provides for a provision that the President during the period of Proclamation of emergency issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union including the Judges of the Supreme Court and the High Court.

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