directions : The following four (4) items consist of two statements, Statement I and Statement II. Examine these two statements carefully and select the correct answer using the code given below : Code :
- ABoth the statements are individually true and Statement II is the correct explanation of Statement I.
- BBoth the statements are individually true but Statement II is not the corrct explanation of Statement I.
- CStatement I is true but Statement II is false.
- DStatement I is false but Statement II is true.
Explanation
As per the RBI's State Finances report of July 2018 (based on revised estimates), the consolidated gross fiscal deficit of states stood at 3.1% of GDP in 2017-18, remaining above the 3% threshold for the third successive year (3.1% in 2015-16, 3.5% in 2016-17, 3.1% in 2017-18), so statement I is true on the contemporaneous data. The same report shows special category states' GFD rising from 3.0% to 6.6% of GSDP in 2017-18, so statement II is also true on that data. However, later actuals revised the all-states figure downward (about 2.4%), and reputable keys disagree on whether II explains I, with some keys marking both statements false. The stored key is retained as given. (key disputed)