| During a national emergency, the President can: |
| 1. Reduce the transfer of finances from Centre to states. |
| 2. Increase the transfer of finances from Centre to states. |
| 3. Cancel the transfer of finances from Centre to states. Select the correct answer using the codes given below. |
A) 1 only
B) 1 and 2 only
C) 1 and 3 only
D) 1, 2 and 3
Correct Answer: C
Solution :
While a proclamation of national emergency is in operation, the President can modify the constitutional distribution of revenues between the centre and the states. This means that the president can either reduce or cancel the transfer of finances from Centre to the states.
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