Explanation:

The Tax buoyancy which is calculated as a ratio of percentage growth in tax revenues to growth in nominal GDP for a given year has shown variations. Tax revenue as a percent of GDP of India has not increase steadily in the last decade. Hence statement 1 is not correct

 Fiscal deficit as a percentage of GDP had increased rapidly in recession years after 2008 due the fiscal stimulus given by the government like reduced taxes such as Service tax, personal income tax, Corporation tax and Excise duty. Therefore statement 2 is incorrect.