Q. Consider the following statements regarding financial emergency:
1. The Financial Emergency continues indefinitely till it is revoked, if it is approved by both houses.
2. A resolution approving the proclamation of financial emergency should be passed by both Houses of Parliament by special majority.
Which of the statements above given is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation:

  • Once approved by both the Houses of Parliament, the Financial Emergency continues indefinitely till it is revoked.

This implies two things:

  • there is no maximum period prescribed for its operation; and
  • Repeated parliamentary approval is not required for its continuation.
  • A resolution approving the proclamation of financial emergency can be passed by either House of Parliament only by a simple majority, that is, a majority of the members of that house present and voting.
  • A proclamation of Financial Emergency may be revoked by the president at anytime by a subsequent proclamation. Such a proclamation does not require the parliamentary approval.

Source: Laxmikanth