Statement I : The overall fiscal deficit of the States in India during 2017-2018 stayed above the FRBM threshold level of 3 percent for the third successive year. Statement I : Special Category States had run up a higher level of fiscal deficit in 2017-20

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Q: 72 (CDS-II/2018)

Statement I : The overall fiscal deficit of the States in India during 2017-2018 stayed above the FRBM threshold level of 3 percent for the third successive year.
Statement I : Special Category States had run up a higher level of fiscal deficit in 2017-2018 compared to 2016-2017.

question_subject: 

Science

question_exam: 

CDS-II

stats: 

0,10,14,10,11,2,1

keywords: 

{'fiscal deficit': [0, 2, 2, 4], 'overall fiscal deficit': [0, 0, 0, 1], 'frbm threshold level': [0, 0, 0, 1], 'special category states': [0, 0, 0, 1], 'third successive year': [0, 0, 0, 1], 'india': [8, 1, 7, 13], 'states': [1, 0, 0, 1]}

The correct answer is option 1: Both the statements are individually true and Statement II is the correct explanation of Statement I.

Statement I states that the overall fiscal deficit of the states in India during 2017-2018 stayed above the FRBM threshold level of 3 percent for the third successive year. This means that for three consecutive years, the total fiscal deficit of the states exceeded the limit set by the Fiscal Responsibility and Budget Management (FRBM) Act.

Statement II states that Special Category States had run up a higher level of fiscal deficit in 2017-2018 compared to 2016-2017. This means that the states categorized as Special Category, which typically have higher levels of fiscal deficit, experienced an increase in their fiscal deficit from the previous year.

Both statements are individually true. Statement II provides an explanation for Statement I by indicating that the higher fiscal deficit in 2017-2018 was driven by Special Category States. Therefore, option 1 is the correct answer.