Explanation:

Statement 1 is correct. The nationalist agitation forced the Government to make some changes in legislative functioning by the Indian Councils Act of 1892. The number of additional members of the Imperial and Provincial Legislative Councils was increased from the previous six to ten to ten to sixteen. A few of these member could be elected indirectly through municipal committees, district boards, etc., but the official majority remained.

Statement 2 is not correct. The members were given the right to discuss the annual budget but they could neither vote on it nor move a motion to amend it. They could also ask questions but were not allowed to put supplementary questions or to discuss the answers.