Official Question UPSC 2025
Solution & Analysis
Answer:
Medium Factual Recall
Fiscal Centralization during Crises
Analyze Fiscal Centralization during Crises using previous year trends.
Quick Recall
During a National Emergency, the President of India holds the power to reduce or cancel financial transfers to the states. During a Financial Emergency, the Union can mandate the reduction of salaries for all state employees, explicitly including High Court judges. These provisions centralize immense financial power during crises.
Concept Flow Mapping
National Emergency
allows President to cancel
allows President to cancel
State Financial Transfers
Financial Emergency
allows Centre to reduce
allows Centre to reduce
Salaries of High Court Judges
Financial Modification
continues until
continues until
End of Financial Year
Concept Question
During a Financial Emergency under Article 360, can the Union direct states to reduce the salaries of High Court judges?
Key Takeaway
Yes, the Centre can mandate the reduction of salaries of all state servants, explicitly including High Court judges.
Examiner's Trap
Students logically assume that because the Judiciary is 'independent', their salaries cannot be touched by the executive even during an emergency. Test-setters will also try to trick candidates on *when* the financial suspension ends (immediately vs end of financial year).
Core Insight
Emergency provisions temporarily suspend the federal financial bargain, subordinating state economic survival and judicial financial independence to the macroeconomic survival of the Union.