Correct answer: (c) 1 and 3 only
Explanation
- A
1 only
(a) 1 only. The NK Singh FRBM Review Committee did recommend a 60 percent general-government debt–GDP ratio by 2023, split 40 percent Centre and 20 percent States. Statement 3 is also correct under Article 293(3), so stopping at 1 only is incomplete and not the key.
- B
2 and 3 only
(b) 2 and 3 only. Statement 3 is right, but statement 2 reverses the facts: the Centre’s domestic liabilities as a share of GDP are much higher than those of the States, not 21 percent versus 49 percent. A wrong debt comparison keeps this code off the key.
- C
1 and 3 only
(c) 1 and 3 only. (c) Official key: The FRBM review’s 60–40–20 debt path is correctly stated, and a State indebted to the Centre needs the Centre’s consent to raise a further loan. Statement 2’s 21 percent / 49 percent swap is false, so 1 and 3 only is the stored key.
- D
1, 2 and 3
(d) 1, 2 and 3. Statement 2 is false, so the all-correct code is not the key.
Summary. Official key is (c) 1 and 3 only. The FRBM Review Committee targeted 60 percent combined debt to GDP by 2023 (40 percent Centre, 20 percent States). Article 293 requires Central consent when a State already owes the Centre. The claim that States hold 49 percent domestic liabilities against the Centre’s 21 percent is inverted. Honour the stored letter (c).
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