The correct answer is: a) Social sector spending (education, health, etc.).
Sikkim is a small state in the Himalayas with a population of just over 700,000 people. The state has a high literacy rate and a strong focus on education. The government of Sikkim allocates a significant portion of its budget to social sector spending, including education, health, and social welfare. This spending has helped to improve the quality of life for the people of Sikkim and has made the state a leader in social development in India.
Here is a brief explanation of each option:
- Social sector spending (education, health, etc.): The government of Sikkim allocates a significant portion of its budget to social sector spending, including education, health, and social welfare. This spending has helped to improve the quality of life for the people of Sikkim and has made the state a leader in social development in India.
- Infrastructure development: The government of Sikkim also allocates a significant portion of its budget to infrastructure development, including roads, bridges, and power plants. This spending has helped to improve the connectivity and economic development of the state.
- Debt servicing: The government of Sikkim also has to service its debt, which is a significant portion of its budget. This debt is mostly due to the construction of infrastructure projects.
- Defense and military expenditures: The government of Sikkim does not have a large military and does not spend a significant portion of its budget on defense.