Assertion (A) : The structural adjustment programme encourages State spending and budget deficit to spur growth.Reason (R) : The International Monetary Fund wants to ensure that money lent to a country is not spent for politically popular purposes but it is spent for purposes without economically profitable motives.

Structural adjustment programmes typically require fiscal austerity, reduction of state spending, and control of budget deficits, making Statement A false. Statement R correctly describes the conditionality approach often associated with international financial institutions like the IMF to ensure loan repayment. Therefore, A is false and R is true.