Question

Consider the following about effects of National Emergency:

1. The President can modify the distribution of revenues between Centre and States during Emergency.

2. The life of Lok Sabha can be extended for a maximum of three years during Emergency.

3. State legislatures get suspended during National Emergency.

Which of the above statements is/are correct?

• A. 1 only
• B. 1 and 2 only
• C. 3 only
• D. All of the above

Answer 1

Answer:

A. 1 only

Effects of National Emergency (Article 352)

• A National Emergency significantly alters the distribution of powers between the Centre and States, moving towards a unitary system without amending the Constitution.
• It impacts the Fundamental Rights of citizens, the Centre-State financial relations, and the life of the Lok Sabha and State Assemblies.

Impact on Centre-State Financial Relations

• Statement 1 is Correct. Under Article 354(1), during a National Emergency, the President has the power to modify the distribution of revenues between the Union and the States.
• This modification can be done by an order of the President, affecting the provisions related to the distribution of taxes, grants, and other financial matters (Articles 268 to 279).
• Such an order remains in force until the end of the financial year in which the emergency ceases to operate.
• This provision allows the Centre to reallocate financial resources as deemed necessary for the emergency situation, effectively centralizing financial control.

Impact on the Life of Lok Sabha

• Statement 2 is Incorrect. While a Proclamation of National Emergency is in operation, the life of the Lok Sabha can be extended by Parliament by law for one year at a time.
• There is no maximum limit of three years for such extensions as long as the emergency is in effect.
• However, this extension cannot continue for more than six months after the Proclamation of Emergency has ceased to operate.
• For instance, during the 1975 National Emergency, the life of the 5th Lok Sabha was extended twice, each time by one year.

Impact on State Legislatures

• Statement 3 is Incorrect. During a National Emergency, state legislatures are not suspended or dissolved. They continue to function.
• However, the legislative power of the state legislatures becomes subordinate to that of the Union Parliament.
• Under Article 250, Parliament acquires the power to make laws on any subject enumerated in the State List, even if the state legislature itself is functioning.
• The laws made by Parliament under this power cease to have effect six months after the emergency ceases to operate.
• It is President's Rule (Article 356), declared due to the failure of constitutional machinery in a state, that leads to the dissolution or suspension of the state legislature.