Create a custom practice set
Pick category, difficulty, number of questions, and time limit. Start instantly with your own quiz.
Generate QuizGK Question
During a Financial Emergency under Article 360, the Union can give directions to States on financial matters. Which of the following is NOT a direction permitted under Article 360?
- Reduction of salaries of State government employees
- Reservation of money Bills for Presidential consideration
- Dissolution of State Legislature
- Observance of principles of financial propriety
Answer: Dissolution of State Legislature
Article 360 permitted directions: (a) Constitutional provision: During Financial Emergency, Union can give directions to States on: (i) Reduction of salaries of State government employees, constitutional functionaries, (ii) Reservation of money Bills for Presidential consideration, (iii) Observance of principles of financial propriety, (b) NOT permitted: Dissolution of State Legislature — Article 360 does not authorize Union to dissolve State Legislatures; that power exists only under Article 356 (President's Rule) for constitutional breakdown, not financial crisis, (c) Rationale: Enable coordinated fiscal response to crisis while preserving State legislative autonomy; financial Emergency addresses fiscal stability, not political governance, (d) Applications: (i) Historical non-use: Article 360 never invoked, reflecting preference for cooperative fiscal mechanisms, (ii) Alternative mechanisms: Finance Commission, FRBM Acts, GST Council address fiscal challenges without Emergency powers, (e) Illustrates calibrated fiscal federalism: Financial Emergency powers limited to fiscal matters; State legislative autonomy preserved unless separate constitutional breakdown under Article 356.