Consider the following statements : 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct ?

Statement 1 is correct as the N.K. Singh Committee (FRBM Review Committee) recommended a 60% debt-to-GDP target (40% for Centre, 20% for States) by 2023, and Statement 3 is correct per Article 293(3) of the Constitution, which mandates Central consent for State borrowing if any part of a previous loan from the Centre remains outstanding. Statement 2 is the primary distractor and is incorrect because it swaps the figures; the Central Government’s liabilities are significantly higher (approx. 46-50% of GDP) than those of the State Governments (approx. 24% of GDP). The core concept tested is fiscal federalism, specifically the legal and constitutional framework governing public debt and deficit management in India.