Consider the following statements regarding the effects of Financial Emergency under Article 360 of the Indian Constitution: 1. During a Financial Emergency, the Centre can direct states to reserve all Money Bills for the President’s consideration even after they are passed by the state legislature. 2. The President is empowered to order reduction in salaries and allowances of judges of the Supreme Court and High Courts. 3. Financial Emergency has been declared once in India during the 1991 economic crisis. Which of the statements given above is/are correct? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation:

During a Financial Emergency, the Centre can direct states to reserve Money Bills and financial bills for the President’s consideration after their passage by the state legislature.
The President may issue directions for reduction of salaries and allowances, including for judges of the Supreme Court and High Courts.
No Financial Emergency has ever been declared in India, not even during the 1991 financial crisis, though it was a severe economic situation.

Source: Laxmikant (Polity)