Consider the following statements:

1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.

Which of the statements given above is/are correct?

The correct option is 1 and 2 only.

Let us analyze each statement step-by-step to understand why this option is correct:

1. Statement 1 is correct:
Under the Constitution of India, a Money Bill (defined in Article 110) can only be introduced in the Lok Sabha (the lower house of Parliament) on the recommendation of the President. Once passed by the Lok Sabha, it is transmitted to the Rajya Sabha (the upper house) for its recommendations. The Rajya Sabha has restricted powers regarding Money Bills: it cannot reject or amend a Money Bill; it can only make recommendations and must return the bill to the Lok Sabha within 14 days. The Lok Sabha is free to accept or reject any or all of these recommendations. If the Rajya Sabha does not return the bill within 14 days, it is deemed to have been passed by both Houses in the form in which it was passed by the Lok Sabha.

2. Statement 2 is correct:
The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement (Budget). According to Article 113 of the Constitution, while the Rajya Sabha can discuss the Demands for Grants, the power to vote on them is exclusively vested in the Lok Sabha. Rajya Sabha members do not have the right to vote on these demands.

3. Statement 3 is incorrect:
The Annual Financial Statement (Budget) is laid before both Houses of Parliament (the Lok Sabha and the Rajya Sabha) on the recommendation of the President. The Rajya Sabha is fully empowered to discuss the Annual Financial Statement as a whole, although it cannot vote on the Demands for Grants or amend/reject the associated Money Bill (Finance Bill).

Therefore, statements 1 and 2 are correct, while statement 3 is incorrect, making 1 and 2 only the correct choice.