Statement — Financial stringency has prevented State “X” from paying salaries to its employees since April this year.\n\nCourses of Action —\nI. Immediately curtail staff strength by at least 30%.\nII. Reduce wasteful expenditure and arrange to pay pending salaries.

Introduction / Context:
When a government defaults on salaries due to fiscal stress, immediate corrective actions should restore essential obligations while addressing inefficiencies. Measures must be proportionate, lawful, and socially responsible.

Given Data / Assumptions:

• Problem: months of unpaid salaries.
• COA I: slash workforce by 30% immediately.
• COA II: curb wasteful spending and prioritize salary payments.

Concept / Approach:
COA II directly targets the cause (spending discipline) and the effect (arrears), fitting public-finance norms of honoring wages first. COA I is extreme, operationally disruptive, and impractical without due process, legal frameworks, and workforce planning; it may worsen service delivery and morale and cannot restore arrears quickly. Therefore only II logically follows.

Step-by-Step Solution:

Verification / Alternative check:
Fiscal rules typically prefer expenditure rationalization, improved collections, and short-term financing over abrupt mass retrenchment. II aligns with this logic.

Why Other Options Are Wrong:

Common Pitfalls:
Assuming headcount cuts are the only way; often leakages and non-priority spends are substantial.

Final Answer:
Only II follows.