ICSE Class 10 Answered

The following are the effects of a financial emergency:

• The President appoints a Finance Commission which would suggest ways to take the country out of the financial crisis.
• The government would direct the state government to follow certain financial rules.
• The President can instruct the states to reduce the salaries and allowances of all the public servants including the judges of the Supreme Court and High Courts.
• The President can order the government to submit money bills to him/her for assent.
• The President has the right to issue instructions to the state government with respect to the funds utilised in the manner he/she deems fit.