Q. Consider the following statements:
Select the correct answer using the codes given below:
Q. Consider the following statements:
Select the correct answer using the codes given below:
The correct option is C 1 and 3 only
Explanation:
Statement 1 is correct: In 2020-21, total expenditure was 13% higher than the budget estimate, with revenue expenditure increasing by 15% and capital expenditure by 7%.
Statement 2 is incorrect: In India, both the Union government and state governments are criticized for incurring very high revenue expenditures that leave little money for developmental spending. In the case of Union budgets, 85-90% of the money spent goes into revenue expenditure. High revenue expenditure impedes developmental efforts and does not create any assets.
High revenue expenditure means that the government machinery is spending too much money on sustaining itself, rather than creating assets required to achieve high economic growth.
Statement 3 is correct: In India, up to a fourth of the Union budget goes into interest payment. It means that the government borrows Rs 6-7 lakh crore every year just to meet its interest payment liabilities, leaving very little for the creation of assets.
Explanation:
Statement 1 is correct: In 2020-21, total expenditure was 13% higher than the budget estimate, with revenue expenditure increasing by 15% and capital expenditure by 7%.
Statement 2 is incorrect: In India, both the Union government and state governments are criticized for incurring very high revenue expenditures that leave little money for developmental spending. In the case of Union budgets, 85-90% of the money spent goes into revenue expenditure. High revenue expenditure impedes developmental efforts and does not create any assets.
High revenue expenditure means that the government machinery is spending too much money on sustaining itself, rather than creating assets required to achieve high economic growth.
Statement 3 is correct: In India, up to a fourth of the Union budget goes into interest payment. It means that the government borrows Rs 6-7 lakh crore every year just to meet its interest payment liabilities, leaving very little for the creation of assets.
