Consider the following statements:1.Tax revenue as a percent of GDP of India has steadily increased in the last decade.2.Fiscal deficit as a percent of GDP of India has steadily increased in the last decade.Which of the statements given above is/are correct?

1. A

   1 only

   Option (a) is 1 only. Tax revenue as a percent of GDP did not rise steadily through the decade before 2017; it fluctuated with growth, tax reform and the crisis years. Statement 1 is false. This option is not the key.

2. B

   2 only

   Option (b) is 2 only. Fiscal deficit as a percent of GDP also did not increase steadily; India ran a large deficit around 2008–13 then consolidated. Statement 2 is false. This option is not the key.

3. C

   Both 1 and 2

   Option (c) is both. Neither ratio was a monotonic decade-long rise. This option is therefore wrong.

4. D

   Neither 1 nor 2

   Neither statement is correct: both tax/GDP and fiscal deficit/GDP moved up and down rather than steadily increasing over the last decade (as of 2017). That is why (d) is the official key.

Summary. Official key is (d) Neither 1 nor 2. 'Steadily increased' is a strong claim. India’s tax-to-GDP ratio wobbled, and the fiscal-deficit ratio spiked after the global crisis then was brought down under FRBM-type paths. Prelims punishes the word steadily. Both statements fail.