Read the following statement carefully and identify the conclusion that follows.

Question

Read the following statement carefully and identify the conclusion that follows.

Statement: The government has announced a reduction in LPG subsidies.

Conclusions:

I. Citizens will now have to pay more for LPG.

II. The government has no money left.

1. A. Only Conclusion I follows (Correct answer)
2. B. Only Conclusion II follows
3. C. Both I and II follow
4. D. Neither I nor II follows

Correct Answer

Option A — Only Conclusion I follows

Detailed Solution & Explanation

The correct answer is Only Conclusion I follows.

Key Points

• A subsidy is government money that keeps the consumer price low.
• Reducing the LPG subsidy therefore raises what citizens pay — Conclusion I is a direct, necessary consequence.
• Conclusion II ('the government has no money left') is speculation about motive: subsidies get cut for fiscal discipline, policy redesign, or redirecting funds, none of which imply an empty treasury.
• In statement–conclusion questions, only what MUST follow counts; plausible-sounding motives that go beyond the statement never qualify.

Additional Information

• The governing rule in statement–conclusion questions: a conclusion follows only if it is necessarily true given the statement. Anything merely plausible, or requiring outside knowledge, fails.
• Conclusion II is a classic overreach: it supplies a motive the statement never states. Subsidy cuts commonly reflect fiscal consolidation, better targeting (as with DBT), or reallocation to other schemes.
• On the subject matter: LPG subsidy in India is delivered through DBTL/PAHAL, which transfers the subsidy directly into the beneficiary's bank account, and the Give It Up campaign encouraged voluntary surrender.
• A quick test for these items — ask whether you could imagine the statement being true while the conclusion is false. For II you easily can, so it does not follow.