Q21 (IAS/1996) Economy › Government Finance & Budget › Government Finance & Budget

The following Table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95 .Based on this table, it can be said that the Indian economy is in poor shape because the Central Government continues to be under pressure to

Years | Defence | Interest Payments | Subsidies | Grants to States/Uts | Others
1989-90 | 1.5.1 | 2.7.7 | 1.6.3 | 1.3.6 | 2.7.4
1994-95 | 1.3.6 | 3.8.7 | 8 | 1.6.7 | 2.3

A

reduce expenditure of defence

B

spend more and more on interest payments

C

reduce expenditure on subsidies

D

spend more and more as grants-in-aid to State Governments/Union Territories

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