Arrange the following sentences to form a meaningful paragraph and then choose the correct order from the options given below.
A)The consolidated gross fiscal deficit to the state GDP (GFD – GSDP) ratio in 2015-16 (RE) breached the 3 per cent ceiling of fiscal prudence for the first time since 2004-05, showing the worsening of state finances.
B)Data comes with a lag but a slippage is also expected in 2016-17. At a combined fiscal deficit of about 7 per cent, Centre and states put together, India’s fiscal deficit is large.
C)The consequences of fiscal imprudence — inflation, widening of the current account deficit and erosion of investor faith — will be adverse for the country.
D)The 2016-17 edition of the RBI’s study on state budgets has rightly warned states to claw back to the path of fiscal consolidation and lower their debt burden.
D will be the first sentence as it talks about RBI warning states on fiscal prudence and debt burden , supported by the statement ‘A’ . BC link can be made as large fiscal imprudence leads to mentioned consequences in the ‘C’ sentence