69th BPSC Prelims (2023), question 118

🏛️ Indian Polity

118. Consequences of invoking Article 360 (financial emergency):
     1. President may order reduction of State employees' salaries.
     2. State money bills need not be reserved for President.
     3. President can order reduction of Union employees' (incl. SC/HC judges) salaries.
     4. State money bills must be reserved for President.
     Which is/are correct?

     1. Only 1, 3 and 4
     2. Only 2
     3. Only 1 and 2
     4. All of the above
     Show answer

     Answer: A — Only 1, 3 and 4

     Under financial emergency, State money bills MUST be reserved for the President (not exempted), so statement 2 is wrong; 1, 3 and 4 correctly describe the consequences.