Given below are two statements :
Statement (I): In the First Five Year Plan of India one of the basic aims of the planners was to raise the level of national income.
Statement (II): It could be possible if the people saved more money than they spent
In the light of the above statements, choose the most appropriate answer from the options given below:

(1) Both Statement I and Statement II are true
(2) Both Statement I and Statement II are false  
(3) Statement I is true but Statement II is false
(4) Statement I is false but Statement II is true

1

First Five-Year Plan: The planners had a fundamental objective of increasing the national income, which could only be achieved if people saved more than they spent. However, in the 1950s, the level of spending was already low and couldn't be reduced further. Hence, the focus was on promoting savings. This proved challenging as the total capital stock in the country was relatively low compared to the number of employable individuals. Nevertheless, during the initial phase of the planned process until the conclusion of the Third Five Year Plan, people's savings did increase. However, the rise was not as remarkable as initially anticipated. Subsequently, from the early 1960s to the early 1970s, the proportion of savings in the country consistently declined.