Which one among the following items comprises the major portion of revenue expenditure of the Union Government of India ?
[amp_mcq option1=”Salaries” option2=”Interest Payments” option3=”Road Transport and Highways” option4=”Defence Services” correct=”option2″]
This question was previously asked in
UPSC CDS-2 – 2024
Interest payments on the Union Government’s outstanding debt constitute one of the largest components of its revenue expenditure. These payments are mandatory outflows resulting from past borrowings and do not create any assets, hence classified under revenue expenditure.
Interest payments represent the largest single item of non-plan revenue expenditure for the Government of India year after year.