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 payments
  2. States’ share of taxes and duties
  3. Centrally sponsored schemes
  4. Subsidies

Correct answer and explanation

Correct answer: Interest payments

Explanation: ✅ Correct Answer: A) Interest payments 📚 Explanation: In the 2023-24 Union Budget, 'Interest Payments' on previous loans are the largest single item of government spending. This accounts for about 20 percent of the total budget. This high cost of debt means the government has less money for new development projects. Managing this expense is a major part of the country's annual financial planning.