7. Consider the following statements in respect of financial emergency under Article 360 of the Constitution of India:  1. A proclamation of financial emergency issued shall cease to operate at the expiration of two months, unless before the expiration of that period it has been approved by the resolutions of both Houses of Parliament. 2. If any proclamation of financial emergency is in operation, it is competent for the President of India to issue directions for the reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the Union but excluding the Judges of Supreme Court and the High Courts. Which of the statements given above is/are correct?