The correct answer is: a) Salaries and pensions.
Salaries and pensions are the largest expenditure head in the Mizoram budget. In 2022-2023, the state government allocated Rs. 10,000 crore for salaries and pensions, which is about 30% of the total budget. This is followed by debt servicing, which is about 20% of the total budget. Capital expenditure is about 15% of the total budget, and subsidies are about 10% of the total budget.
Salaries and pensions are the largest expenditure head because the state government has a large number of employees. In 2022-2023, the state government had about 300,000 employees. The state government also has a large number of pensioners. In 2022-2023, the state government had about 100,000 pensioners.
Debt servicing is the second largest expenditure head because the state government has a large amount of debt. In 2022-2023, the state government’s debt was about Rs. 20,000 crore. The state government has to pay interest on this debt, which is a major expenditure.
Capital expenditure is the third largest expenditure head because the state government has to invest in infrastructure and other development projects. In 2022-2023, the state government’s capital expenditure was about Rs. 5,000 crore.
Subsidies are the fourth largest expenditure head because the state government gives subsidies to various sectors, such as agriculture, food, and fuel. In 2022-2023, the state government’s subsidy expenditure was about Rs. 3,000 crore.