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 Supreme Court and the High Courts. Which of the statements given above is/are correct?

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YESPYQ · Accepted Answer

Correct answer: 1 only. A Financial Emergency under Article 360 of the Indian Constitution can be declared if the President believes that India’s financial stability or credit is threatened. It allows the central government to assume control over state finances and redistribute resources. Statement 1 is correct: Article 360 of the Indian Constitution specifies that a proclamation of financial emergency must be approved by both Houses of Parliament within two months of being issued; if not, it will automatically cease to operate after this period. Statement given aligns with the provisions under Article 360, making this statement accurate. Statement 2 is incorrect: While it is true that during a financial emergency, the President has the authority to issue directions for the reduction of salaries and allowances of persons serving in connection with the Union’s affairs, it is not true that Judges of the Supreme Court and High Courts are exempt from such reductions. In fact, the President is empowered to apply these measures to all public servants, including judges, during a financial e

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