Consider the following statements Statement 1 Article 360 allows the President to declare a Financia...........

Indian Polity Emergency

Consider the following statements:

Statement-1:

Article 360 allows the President to declare a Financial Emergency if the financial stability or credit of India or any of its parts is threatened.

Statement-2:

Financial Emergency, once declared, must be approved by the Parliament within one month.

Which one of the following is correct in respect of the above statements?

Both Statement-1 and Statement-2 are correct and Statement-2 is the correct explanation for Statement-1

Both Statement-1 and Statement-2 are correct and Statement-2 is not the correct explanation for Statement-1

Statement-1 is correct but Statement-2 is incorrect

Statement-1 is incorrect but Statement-2 is correct

Statement-1 is correct but Statement-2 is incorrect

Article 360 of the Indian Constitution does indeed empower the President to proclaim a Financial Emergency if the financial stability or credit of India or any part of it is threatened. Therefore, Statement-1 is correct.
According to the Indian Constitution, a Financial Emergency needs to be approved by both houses of Parliament. However, the Constitution doesn't specify a time limit of "one month" for the approval of a Financial Emergency. For a National Emergency under Article 352, approval is required within one month, but this stipulation doesn't apply to a Financial Emergency under Article 360. Therefore, Statement-2 is incorrect.