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WBCS Preliminary Examination 2023 — General Studies · Question 59 of 200

Q59
Indian EconomyPublic Finance, Budget & Taxation
The major share of expenditure in the Union budget 2023-24 goes to —
  1. a.Interest payments
  2. b.States' share of taxes and duties
  3. c.Centrally sponsored schemes
  4. d.Subsidies

Answer: (A) Interest payments

In the Union Budget 2023–24 (presented on 1 February 2023), total expenditure was estimated at about ₹45.03 lakh crore, of which interest payments were about ₹10.80 lakh crore (roughly 24%), the largest single item. In the "Rupee Goes To" chart, interest payments take 20 paise, States' share of taxes and duties 18, central sector schemes 17, centrally sponsored schemes 9, Finance Commission and other transfers 9, defence 8, subsidies 7 and pensions 4. Note that the States' share of taxes is devolution, not the Centre's own spending. The same Budget set capital expenditure at ₹10 lakh crore and the fiscal deficit at 5.9% of GDP.

Q58 Whole paperQ60