When a state is under President's Rule, the Budget of that state is passed by:

When President's Rule is imposed in a state under Article 356, the President can declare that the powers of the state legislature shall be exercised by or under the authority of Parliament. So the budget of the state is presented in the Lok Sabha and passed by Parliament.

Effects of President's Rule on the state legislature:

• The President may dissolve the state Legislative Assembly or keep it in suspended animation.
• Parliament can pass the state budget and make laws for the state.
• Parliament may also delegate the power to make laws for the state to the President or another authority.
• When Parliament is not in session, the President can issue ordinances for the state.

Effects on the executive:

• The President takes over the functions of the state government.
• The state Council of Ministers headed by the Chief Minister is dismissed.
• The Governor runs the administration on behalf of the President, with the help of advisers.

The High Court:

President's Rule does not affect the powers of the High Court.

Duration of President's Rule:

• A proclamation must be approved by both Houses of Parliament within two months.
• Once approved, it lasts for six months and can be extended by six months at a time, up to a maximum of three years.
• Beyond one year, it can be continued only if a National Emergency is in force and the Election Commission certifies that elections cannot be held.

Judicial review:

In the S.R. Bommai case (1994), the Supreme Court held that the imposition of President's Rule is subject to judicial review.

The Court said that the majority of a government should be tested on the floor of the House.

Why not the other options?

• ✗The Governor cannot pass the budget alone.
• ✗A dissolved Assembly cannot meet.
• ✗The Union Cabinet cannot pass a budget without Parliament.