A proclamation of financial emergency under Article 360 must be approved by Parliament within
Answer: C
Correct answer: Two months
A proclamation of financial emergency ceases to operate at the expiry of two months unless approved in the meantime by resolutions of both Houses. Approval requires only a simple majority. Once approved it continues indefinitely until revoked by a further proclamation - there is no maximum period and no requirement of periodic renewal. This distinguishes it from a national emergency under Article 352, which needs a special majority and must be renewed every six months, and from President’s Rule under Article 356, which is limited to three years in total. During a financial emergency the Union may direct any state to observe canons of financial propriety; the President may reduce the salaries of state officials and of judges of the Supreme Court and High Courts; and all state money bills must be reserved for the President’s consideration. It has never been proclaimed, not even during the balance of payments crisis of 1991.
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