Statement The biggest story of this Budget is a major change in the way the Union Government spends ...........

Logical Reasoning(Insurance) Statement - Assumptions

Statement: The biggest story of this Budget is a major change in the way the Union Government spends its money. Earlier this week, Finance Minister Arun Jaitley announced that the government had accepted the recommendations of the 14th Finance Commission and raised the States’ share in the net proceeds of union tax revenues from 32 per cent to 42 percent. With more of its pie going directly to States to spend as they like, the Union Government would begin reducing its allocations to the State plan and wind up some Centrally Sponsored Schemes. 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 directives of the central Government. You have to assume everything in the statement to be true, and then decide which of the three given suggested assumptions logically follows.

None is implicit

Only II and III are implicit

Only III is implicit

All are implicit

None of these

छोटे Courses बड़े Results

Master Statement - Assumptions

Prepare through Micro-courses

Try Now

Explanation:

Nothing about the sources of income of the State Governments is mentioned in the statement. So, I is not implicit. Since the Central Government has directed the State Governments to reduce expenditure, so II is implicit. Further, since the Central Government has refused any further grant to the State Governments for the next six months, it is quite clear that state Governments will abide by the directives of central Government. So, III is also implicit.