1. The President may order the States to reduce the salaries and allowances of all or any class of employees serving in connection with the State affairs.
2. Money Bills or other financial bills passed by the State Ligislature are not required to be reserved for the consideration of the President.
3. The President can issue directions for the reduction of salaries and allowances of all or any class of employees serving in connection with the affairs of the Union, including the Judges of the Supreme Court and the High Courts.
4. Money Bills or other financial bills are to be reserved for the consideration of the president after they are passed by the Legislature of the State.
Select the correct answer using the codes given below:
Correct Answer: (c) Only 1 and 2
Solution:The Financial emergency is declared under Article 360 by the President if he is satisfied that a situation has arisen whereby the financial stability or credit of India or any part of its Territory is threatened. The Proclamation shall cease to operate at the expiration of 2 months unless before the expiration of that period it is approved by resolution of both the Houses of Parliament. Thus, Statement 1 is correct. During financial emergency, the President can direct the States to reduce the salaries and allowances of all or any class of persons serving in connection with affairs of the State. The President can issue directions for reducing the salaries and allowances of Judges of the High Courts and Supreme Court as well.