The correct answer is: Only II follows.
The statement says that the state government has not been able to pay salaries to its employees since April. This could be due to a number of reasons, such as a decline in revenue, an increase in expenses, or both.
Course of action I suggests that the state government should immediately curtail the staff strength at least by 30%. This would reduce the amount of money that the government needs to pay in salaries, and could help to alleviate the financial stringency. However, it is important to note that this would also mean that the government would have fewer employees to carry out its work. This could have a negative impact on the quality of government services.
Course of action II suggests that the state government should reduce wasteful expenditure and arrange to pay the salaries of its employees. This is a more sustainable solution, as it would not require the government to lay off employees. However, it is important to note that it may not be easy to identify and reduce wasteful expenditure.
In conclusion, only course of action II follows. The state government should reduce wasteful expenditure and arrange to pay the salaries of its employees.