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 II: Special Category States had run up a higher level of fiscal deficit in 2017-2018 compared to 2016-2017.
Both the statements are individually true and Statement II is the correct explanation of Statement I
Both the statements are individually true but Statement II is not the correct explanation of Statement I
Statement I is true but Statement II is false
Statement I is false but Statement II is true
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CDS-2 – 2018
– Statement II is true: Available data for 2017-2018 indicates that Special Category States, facing unique developmental challenges and revenue constraints, did generally run up a higher level of fiscal deficit in 2017-2018 compared to 2016-2017, often exceeding the 3% limit.
– Special Category Status provides certain benefits, including more favorable terms for central assistance, but these states often exhibit higher fiscal stress due to structural factors.