Which one among the following items comprises the major portion of revenue expenditure of the Union Government of India? (a) Salaries (b) Interest Payments (c) Road Transport and Highways (d) Defence Services

The revenue expenditure of the Union Government of India consists of obligatory expenses that do not create physical or financial assets [3]. Among the major components—which include interest payments, subsidies, salaries, pensions, and defence revenue expenditure—interest payments consistently constitute the largest single portion [1]. For instance, in the 2023-24 budget estimates, interest payments were projected at Rs. 10.80 lakh crore, accounting for approximately 30.8% of the total revenue expenditure [1]. In contrast, major subsidies accounted for about 10.7% [1]. While salaries (pay and allowances) and defence services are significant components of non-plan revenue expenditure, they remain smaller in volume compared to the debt-servicing obligations of the government [4]. Road transport and highways primarily involve capital expenditure for asset creation, although some grants-in-aid for these purposes are technically classified as revenue expenditure [4].

Sources

1. [1] https://pib.gov.in/PressReleasePage.aspx?PRID=1895279
2. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Effective revenue deficit' and 'effective capital expenditure' > p. 153
3. [4] https://cga.gov.in/writereaddata/statements0405.pdf