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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.

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1. 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

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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.

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