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Question

Which is the most significant factor of revenue expenditure of Central Government?

A
Defence expenditure
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B
Subsidy
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C
Interest payment
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D
Salaries of employees
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Solution

The correct option is C Interest payment

A payment amount determined by the interest rate on an account. As a borrower, an interest payment represents the rate charged for being lent funds. As an investor, interest payments represent income on earned on cash accounts or fixed and variable rate securities.


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