Question

Q. Which of the following could be the implications on the Centre-state relations after the declaration of the “National Emergency”?

Select the correct answer using the code given below:

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  Neither 1 nor 2

Answer 1

The correct option is D

Neither 1 nor 2
Explanation:

Statement 1 is incorrect:
During the National Emergency, the Parliament acquires the power to legislate with respect to matters in the State List. But it does not mean that states will lose that power of legislation. That means, the power of legislation on state subjects is not exclusive to the centre and both the centre and state can do. If there is any inconsistency between a parliamentary law and a state law, the latter is to prevail.

Note: The laws made by the Centre during National Emergency become inoperative on the expiration of six months after the emergency has ceased to operate.

Statement 2 is incorrect:
Money bills of the states will be reserved for the consideration of the President is the implication of the Financial Emergency under Article 360 of the Indian Constitution but not under the National Emergency.

Here are the differences between the consequences of National and Financial emergencies.

National Emergency

Financial Emergency

The President of India can modify the constitutional distribution of revenues between the Centre and the states. This implies that the president can either reduce or cancel the transfer of finances (both tax sharing and grants-in-aid) from the Centre to the states.

The Centre can give directions to the states in the following matters: (i) to observe the specified canons (basic set of rules and regulations) of financial propriety (ii) to reduce the salaries and allowances of all class of persons serving in the state (including the high court judges) and (iii) to reserve all the money bills and other types of financial bills for the consideration of the President.