WBCS.LIVE practice question

Which of the following is not regarded as public expenditure in India?

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

Answer options

  1. Subsidy given to local city bus service
  2. Defense expenditure
  3. Interest payment on national debt
  4. Investment spending by public companies

Correct answer and explanation

Correct answer: Investment spending by public companies

Explanation: āœ… Correct Answer: D) Investment spending by public companies šŸ“š Explanation: Public expenditure refers to money spent by the government on services and needs, such as subsidies, defense, and debt interest. The business investments of state-owned companies are categorized as corporate spending. While these companies belong to the state, their commercial investments are part of their own financial operations. This distinction is important for accurate national budget accounting.