Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — 1 only
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is correct: Under Article 360(2), a proclamation of Financial Emergency must be approved by both Houses of Parliament within two months from the date of its issuance; otherwise, it ceases to operate.
- Statement 2 is incorrect: During a Financial Emergency, the President can issue directions for reducing the salaries and allowances of all or any class of persons serving the Union, explicitly including the judges of the Supreme Court and the High Courts [Article 360(4)(b)].
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