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Question

Consider the following statements in respect of financial emergency under Article 360 of the Constitution of India:
1. A Proclamation of financial emergency issued shall cease to operate at the expiration of two months, unless before the expiration of that period it has been approved by the resolutions of both Houses of Parliament.
2. If any proclamation of financial emergency is in operation, it is competent for the President of India to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union but excluding the Judges of the Supreme Court and the High Courts.

A
1 only
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B
2 only
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C
Both 1 and 2
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D
Neither 1 nor 2
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Solution

The correct option is A 1 only

Option C is the correct answer as both statements are true.

Clause 1 of the Article 360 laying down the provisions of Financial Emergency state that the proclamation of Financial Emergency shall cease to operate at the expiration of two months, unless before the expiration of that period it has been approved by resolutions of both Houses of Parliament.

The president is empowered to reduce the salaries of all government officials, including judges of the supreme court and high courts, in cases of a financial emergency.


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