Question
Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer :
Statement : The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.
Assumptions :
I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
Statement : The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.
Assumptions :
I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
Answer: Option B
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