Grants from the central government form part of Bihar’s revenue.
Revenue is the money that a government receives from taxes, fees, and other sources. It is used to pay for the government’s expenses, such as salaries, infrastructure, and social programs.
Expenditure is the money that a government spends on its activities. It includes salaries, infrastructure, social programs, and debt service.
Borrowing is when a government takes out loans to finance its expenses. This can be done through the sale of bonds or other debt instruments.
Public debt is the total amount of money that a government owes. It includes both short-term and long-term debt.
In the case of Bihar, grants from the central government are a significant source of revenue. In 2019-20, they accounted for 14% of the state’s total revenue. This money is used to fund a variety of programs, including education, health, and infrastructure.
The other options are incorrect because they do not accurately describe the nature of grants from the central government. Expenditure is the money that a government spends on its activities, while borrowing is when a government takes out loans to finance its expenses. Public debt is the total amount of money that a government owes.