Multiple choice

What is the most important item of expenditure of the Union Government in India?

  1. Subsidies

  2. Defence

  3. Wages and salaries

  4. Interest payments
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For the Indian Union Government, interest payments on accumulated debt have historically been the largest single expenditure category, exceeding defense and subsidies. This reflects decades of fiscal deficit financing. While wages and subsidies are significant, interest payments dominate the budget.

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