In case of a financial emergency, the President can reduce the salaries of all government officials, including judges of the Supreme Court and High Courts.

The Parliament is not empowered to vote on the expenditure charged on the ‘Consolidated Fund of India’, which includes the emoluments and allowances of the President of India. The reason why Parliament isn't allowed to vote on this charged expenditure is to allow financial independence and security to the executive and judiciary during the term of their office.

Parliamentary Government is more stable and successful in a country where there are two large parties.

No money bill can be introduced in the State Legislature without the permission of that particular state. The Governor has the power of issuing ordinances when the Legislature is not in session. The Governor can recommend the President to impose President’s Rule in the state.

Appointments of officers and servants of a High Court are made by the chief Justice of the High Court.

The President can proclaim a state of emergency in case of- a) external aggression or internal disturbances threatening the security of the country. b) failure of Constitutional machinery in a particular state. c) threat to the financial stability of the country.

In the election of the President, the value of the vote of the Lok Sabha members differs according to the number of votes a member represents.

In returning a proposal to the Council of Ministers for reconsideration, the President act's in his own discretion.

The five year term of the President is calculated from the day he assumes charge.

The President can make laws through ordinances during the recess of the Parliament. According to Article 123 of Indian Constitution, If at any time, except when both Houses of Parliament are in session, the President is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinance as the circumstances appear to him to require.

The Chief Minister of a Union Territory, whenever such a set up exists, is appointed by the Lt. Governor.

The Central Government’s exclusive powers are enumerated in the Union List.

If the President returns a bill sent to him for his assent and the Parliament once again passes the bill in its original form then the President gives assent to the bill.

In addition to the powers mentioned in the Union and Concurrent Lists, the Union Government has the residuary powers. Matters which are not included in any of the three lists are known as residuary subjects and the right to make laws on these subjects is called residuary power.

The President of India appoints the Governor of Jammu and Kashmir.

The only instance when the President of India exercised his power of veto related to the Indian Post Office (Amendment Bill).

Entertainment tax is levied by the state government on various forms of entertainment. Each state taxes different types of entertainment and at varying rates. 

Part XI(11) of the Indian constitution defines the power distribution between the federal government (the Centre) and the States in India. Both central and state government doesn't have co-ordinate status.

The state government’s responsibility for educational planning is shared by the Ministry of Human Resource Development.

Three types of emergencies have been visualised in the constitution of India National Emergency (under article 352) State Emergency (under article 356) Financial Emergency (under article 360)  

The Centre – State financial distribution takes place on the recommendation of the Finance Minister.

Railways is a subject in the union list.

Extradition is included in the Union List. Extradition is the official process whereby one country transfers a suspected or convicted criminal to another country. Between countries, extradition is normally regulated by treaties.

In normal times, the Union Parliament can legislate on any item in the State List if the Rajya Sabha passes a resolution to that effect by 2/3rd majority.

Population control and family planning is in the Concurrent List in the Constitution of India.

Finance Commission has the Constitutional authority to decide tax share of a state under article 269 of the Indian Consitution.

A law passed by a state on a concurrent subject gets precedence over the central law if it was passed by the State Legislature and approved by the President.

Option (2) is correct: Lottery organised by the government of a state comes under the State List. 

The Indian Parliament can invade the State List if I. A subject in the State List assumes National importance. II. A proclamation of emergency has been issued by the President of India.  

Due to centre’s control of the state in planning process Centre – State relation termed as municipal relation.