The correct answer is: a) Salaries and pensions.
Salaries and pensions are the largest component of Manipur’s expenditure, accounting for over 50% of the state’s budget. This is due to the fact that Manipur has a large government sector, which employs a significant proportion of the state’s population. The state government also provides a number of subsidies, such as food subsidies and fuel subsidies, which account for a significant portion of the state’s expenditure. Debt servicing is another major component of Manipur’s expenditure, accounting for over 20% of the state’s budget. This is due to the fact that Manipur has a large debt burden, which it has accumulated over the years. Capital expenditure on infrastructure is a relatively small component of Manipur’s expenditure, accounting for less than 10% of the state’s budget. This is due to the fact that Manipur has a limited budget, which it has to allocate to a number of competing priorities.
Here is a brief explanation of each option:
- Salaries and pensions: Salaries and pensions are the largest component of Manipur’s expenditure, accounting for over 50% of the state’s budget. This is due to the fact that Manipur has a large government sector, which employs a significant proportion of the state’s population. The state government also provides a number of subsidies, such as food subsidies and fuel subsidies, which account for a significant portion of the state’s expenditure.
- Subsidies: Subsidies are payments made by the government to individuals or businesses to reduce the cost of goods or services. Subsidies can be used to promote economic development, to protect consumers from high prices, or to support certain industries. In Manipur, subsidies are used to provide food and fuel to the poor, to support agriculture, and to promote industrial development.
- Debt servicing: Debt servicing is the payment of interest and principal on a loan. The amount of debt servicing a country pays depends on the size of its debt, the interest rate on its debt, and the terms of its loans. In Manipur, debt servicing is a major component of the state’s expenditure, accounting for over 20% of the state’s budget. This is due to the fact that Manipur has a large debt burden, which it has accumulated over the years.
- Capital expenditure on infrastructure: Capital expenditure is spending on assets that will last for more than one year, such as roads, bridges, and schools. Infrastructure is the basic physical and organizational structures and facilities needed for the operation of a society or enterprise, such as transportation, power, water and sewage systems, and communication systems. In Manipur, capital expenditure on infrastructure is a relatively small component of the state’s expenditure, accounting for less than 10% of the state’s budget. This is due to the fact that Manipur has a limited budget, which it has to allocate to a number of competing priorities.