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.
Which of the above statements are correct?
A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2

Answer 1

Hint: According to clause 1 of Article 360 of the constitution of India, the president can put a financial emergency. This article also lays down the provisions of the Financial Emergency.

Complete answer: Article 360 has the provisions of Financial Emergency which state that the proclamation of Financial Emergency shall stop to perform at the termination of two months unless before such termination of that period it has been approved by the houses of Parliament i.e. the Rajya Sabha and the Lok sabha. The president is authorised to decrease the salaries of all government officials. These include judges of the supreme court and high courts. The proclamation of financial emergency must be approved and accepted by both the Houses of Parliament within a time frame of two months from the date of its issue. Such a proclamation of Financial Emergency can very well be revoked by the President. This can happen anytime and without any Parliamentary approval. Therefore both statements are true.
Option “C” is the correct answer.

Note: A resolution that approves the proclamation of a financial emergency can be passed by either House of Parliament i.e. Lok Sabha or Rajya Sabha solely by a simple majority.