The correct option is "1 and 2 only" because the Cabinet Secretariat plays a crucial role in facilitating the functioning of the Cabinet by preparing agendas for meetings and providing secretariat assistance to Cabinet Committees. However, it does not have the authority to allocate financial resources to ministries, as this responsibility lies with the Ministry of Finance. This understanding is essential for UPSC aspirants, as it reflects the delineation of responsibilities within the executive branch of government, a key concept in Indian polity and governance.