2. Consider the following statements in respect of financial emergency under Article 360 of the Constitution (UPSC / IAS 2007)
- 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 of India approved by the resolutions of both Houses of Parliament.
- 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?