Consider the following statements about the latest developments in the Union Government finances : 1. The fiscal deficit of the Union Government had reached 9·2 percent of GDP during the pandemic FY21. 2. The fiscal deficit has moderated to 7·7 percent of GDP in FY22. 3. The revenue collection over the last two years has gone down. Which of the above statements is/are correct?

Explanation

Among the given statements, Statement 1 is correct, because during the COVID-19 pandemic in FY 2021, the Union Government’s fiscal deficit reached 9.2% of GDP. In FY 2022, the fiscal deficit fell to 6.7% of GDP, not 7.7%; therefore, Statement 2 is false. In the last two years, revenue collection has increased, not decreased; hence Statement 3 is also false. Thus, the correct answer is option (b).