Directions: The question given below consists of a passage, followed by three arguments I, II and III. You have to decide which of the arguments is/are 'strong' arguments and which of the arguments are 'weak' arguments and accordingly choose your answer from the alternatives given below each question.

Passage: There has been various calls for the setting up of an Independent Fiscal Council in India. A Fiscal Council is an independent fiscal institution (IFI) with a mandate to promote stable and sustainable public finances. These institutions assist in calibrating sustainable fiscal policy by making an objective and scientific analysis while also bringing in greater transparency and accountability.

Is the setting up of an Independent Fiscal Council necessary in India?

Arguments:

I. Yes. The fiscal deficit figures over the past years have consistently overshot relaxed FRBM targets and the current economic crisis will only increase the deficit.

II. No. This will dilute the powers of an elected Government to make appropriate fiscal decisions.

III. Yes. It has been observed that tax officials have been resorting to illegal bullying methods to achieve unrealistic tax targets.