SSC CGL 2025 Tier-I · 23 September 2025, Shift 3 · General Awareness · Question 14 of 100

We transcribed this text from the pictures on a candidate's response sheet for this shift; the answer is the key SSC colour-marked on that sheet. Solution last reviewed 13 September 2026.

Where this paper and its answers come from

SSC does not publish CGL question papers or a public answer key. From 2025 the candidate response sheet prints every question and option as a picture, so the text here is transcribed from those pictures for this shift and checked against them independently; where the layout carries meaning, the picture is shown as well. Each answer is the key SSC colour-marked on that sheet. SSC released a tentative key for challenge and later its final one, both only to candidates behind a login, and the sheet does not say which of the two it carries. The solutions are written by UnlockIAS.

Which of the following accurately reflects the constitutional provisions and historical application of Financial Emergency under Article 360?

(a)No Financial Emergency has ever been declared, but it allows salary cuts of SC judges.
(b)A Financial Emergency was declared during the 1991 economic crisis.
(c)Article 360 allows states to withhold salaries of central employees.
(d)During a Financial Emergency, only the President can dismiss the Union Cabinet.

Answer

Why

Correct — A. Both halves of option (a) hold.

No Financial Emergency has ever been proclaimed in India, the 1991 crisis included.

While one is in operation, Article 360(4)(b) lets the President direct a cut in the salaries and allowances of persons serving the Union, including Supreme Court and High Court judges → option (a).

Why the others are wrong

(b)
A Financial Emergency was declared during the 1991 economic crisis. — No proclamation was made in 1991. India met that balance-of-payments crisis with IMF and World Bank loans and a reform package. Article 360 has never been invoked.
(c)
Article 360 allows states to withhold salaries of central employees. — The power runs from the Union to the states. Under Article 360(4)(a) the Union can direct a state to cut the salaries of people serving that state. No state gains any power over central employees' pay.
(d)
During a Financial Emergency, only the President can dismiss the Union Cabinet. — Article 360 says nothing about dismissing the Union Cabinet. Its powers are financial: directions on financial propriety, salary cuts, and reserving state Money Bills for the President.

Concept

Article 360 lets the President proclaim a Financial Emergency when satisfied that the financial stability or credit of India, or of any part of it, is threatened. The proclamation lapses after two months unless both Houses of Parliament approve it.

While it runs, the Union can direct states to observe canons of financial propriety, cut the salaries of state employees, and reserve Money Bills for the President.

It can also cut the salaries of those serving the Union, judges of the Supreme Court and High Courts among them.

The stem asks about provisions and history together. The keyed statement is true on both counts: Article 360 has never been used, and cutting judges' salaries is one of its powers.

Key facts

Article 360: Financial Emergency when the financial stability or credit of India or any part of it is threatened.
A Financial Emergency proclamation lapses after two months unless approved by both Houses of Parliament.
Article 360(4)(b): the President may direct a cut in the salaries of those serving the Union, including Supreme Court and High Court judges.
No Financial Emergency has ever been proclaimed in India.

Study next

National Emergency under Article 352 and its one-month approval windowPresident's Rule under Article 356How the Constitution protects judges' salaries (Articles 125 and 221)

Common traps

Picking the 1991 option because 1991 was a real financial crisis. India handled it with IMF and World Bank support, and Article 360 was never invoked.
Assuming judges' salaries can never be cut. Article 360(4)(b) is the stated exception during a Financial Emergency.

Here Article 360 is asked through a true-statement pick. Its salary-cut power is asked directly at 21 Sep 2025, 16:00, GA Q.16 (keyed: the President), and Article 360 is a distractor for President's Rule at 19 Sep 2024, 16:00, GA Q.13.

Related PYQs

No directly related past PYQ was found.

Topic: General Policy — all 308 SSC CGL questions on it, every solved shift.