The correct answer is (b) Interest payments.
Interest payments are the largest item of public expenditure in the Union budgets in recent years. This is because the government has been borrowing heavily to finance its expenditure. The interest payments on these loans have been increasing steadily, and now account for a significant proportion of the government’s budget.
Defence expenditure is the second largest item of public expenditure. This is because India has a large military, which is necessary to maintain its security. The government spends a lot of money on salaries, equipment, and training for its soldiers.
Major subsidies are the third largest item of public expenditure. These are subsidies that the government gives to farmers, consumers, and other sectors of the economy. The government gives these subsidies to keep prices low and to support certain industries.
Capital expenditure is the fourth largest item of public expenditure. This is the money that the government spends on building roads, bridges, schools, and other infrastructure. The government invests in capital expenditure to improve the quality of life for its citizens.
In conclusion, the largest item of public expenditure in the Union budgets in recent years is interest payments. This is because the government has been borrowing heavily to finance its expenditure. The interest payments on these loans have been increasing steadily, and now account for a significant proportion of the government’s budget.