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Q139 (IAS/2007) Polity & Governance › Federalism & Emergency Provisions › Financial Emergency provisions Answer Verified

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 statements given above is/are correct?

Result
Your answer: —  Â·  Correct: A
Explanation

Statement 1 is correct: a proclamation of financial emergency must be approved by both Houses of Parliament within two months of its issue, otherwise it ceases to operate (with special saving if the Lok Sabha is dissolved) [1]. Statement 2 is incorrect as framed: the cited authority describes the Centre’s power to give directions to States — including reduction of salaries and allowances of persons serving in the State — while the provided text does not support the claim that the President may direct reduction of salaries of persons serving in connection with the affairs of the Union with an explicit exclusion of Supreme Court and High Court Judges [2]. Therefore only statement 1 is valid based on the sources cited.

Sources

  1. [1] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 17: Emergency Provisions > Parliamentary Approval and Duration > p. 183
  2. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 15: Centre-State Relations > mi l Effects of Emergencies > p. 157
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