Question

The largest item of expenditure in the current account of the Central Govt. budget is:

  1. Defence expenditure
  2. Subsidies
  3. Interest payment
  4. Expenditure on social services

Answer:

Option C: Interest payment

Detailed Solution:

The correct answer is “Interest payment”.

As of recent trends, the largest item of expenditure in the current account of the Central Government budget in India is typically: (3) Interest payment.