Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?

Let's analyze the trends for tax revenue and fiscal deficit as a percent of GDP in India over the last decade (roughly 2010s to early 2020s, considering the context of a past exam): 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. This statement is incorrect. While there have been efforts to improve tax collection and compliance, tax revenue as a percentage of GDP in India has not shown a 'steady increase' over the last decade. It has generally fluctuated, influenced by economic growth, policy changes (like GST implementation, which initially caused some disruption), and global economic conditions. There have been periods of increase and decrease, not a consistent upward trend. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. This statement is incorrect. India's fiscal deficit as a percentage of GDP has also not 'steadily increased'. The government has generally aimed for fiscal consolidation, trying to reduce the deficit. While there have been deviations due to specific economic challenges (e.g., global financial crisis, economic slowdowns, and most notably, the COVID-19 pandemic which led to a sharp rise in deficit for a period), the overall trend has been one of fluctuation and efforts towards reduction, not a steady increase. Therefore, neither of the statements is correct.