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: Investment by public companies is not treated as public expenditure, as it is made by corporate entities, not directly by the government. 📚 Other Information: ▪️ Public expenditure includes subsidies, defence, welfare schemes, interest payments. ▪️ It is incurred by government for public welfare. ▪️ Public company investment is a private sector-like activity.