Both statements are correct as they elucidate the dynamics of government financing and the role of domestic savings in the Indian economy. First, household financial savings are often channeled into government borrowings, primarily through instruments like Public Provident Fund (PPF) or National Savings Certificates (NSC), indicating a reliance on local savings for funding public expenditure. Second, dated securities, which are long-term debt instruments issued by the government at market-related rates, make up a substantial part of internal debt, reflecting the government's strategy to raise funds from domestic investors while managing interest rate risks. These concepts are integral to understanding fiscal policy and financial markets in the context of India's economic framework, as covered in sources like NCERT textbooks and standard reference materials for UPSC preparation.