Statement-I is Correct: India's public healthcare system has historically prioritized curative care through hospital-based services, while preventive, promotive, and rehabilitative services (such as early screening, health education, and post-treatment recovery) receive significantly less budgetary and structural emphasis.

Statement-II is Correct: Under the Seventh Schedule of the Indian Constitution, 'Public health and sanitation; hospitals and dispensaries' are listed under the State List (Entry 6). This decentralized framework makes State governments primarily responsible for the organization and delivery of health services.

Relationship: While both statements are factually accurate, Statement-II describes the administrative and constitutional division of power, which does not serve as the reason for the curative-heavy nature of the system described in Statement-I. The focus on curative care is a result of historical policy choices, infrastructure development patterns, and funding models rather than the fact that States manage the services. Therefore, Statement-II is not the correct explanation for Statement-I.