WBCS.LIVE practice question

The major share of expenditure in the Union budget 2023-24 goes to —

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Interest payment
  2. State’s share of taxes and duties
  3. Centrally sponsored schemes
  4. Subsidies

Correct answer and explanation

Correct answer: Interest payment

Explanation: In the Union Budget 2023–24, the largest share of expenditure goes to Interest Payments. 📚 Other Information: ▪️ Interest payments account for 20% of total expenditure. ▪️ It is the cost of servicing government borrowings. ▪️ Government borrows through bonds, treasury bills, and loans. ▪️ High interest burden reduces funds available for development schemes. ▪️ Other major expenditures: defence, subsidies, and centrally sponsored schemes. ▪️ India’s fiscal deficit target for 2023–24 = 5.9% of GDP. ▪️ Total expenditure for 2023–24 = ₹45.03 lakh crore. ▪️ Highlights importance of fiscal discipline in India’s economy.