The following question has two blanks, each blank indicating something has been omitted. Choose the word for each blank which best fits the meaning of the sentence as a whole.
State Governments should not …………………'non-merit freebies 'such as gifts and consumer durables………….their fiscal capabilities.
dole out means to distribute or give something
beyond is a limit, which means the freebies should not exceed the state's financial capacity.
So, the sentence will be State Governments should not dole out non-merit freebies such as gifts and consumer durables beyond their fiscal capabilities.
The correct option is (A): dole out, beyond