Q62: MZPSC Prelims 2025 GS: Previous Year Question with Answer

Considering the financial allocations presented in the ‘Rupee Goes To’ section of the Budget 2025-2026, which of the following inferences about the government’s spending priorities can be logically drawn? (i) The largest share of government expenditure is directed towards meeting its mandatory financial commitments rather than direct developmental or welfare schemes. (ii) Defence spending, while substantial, is less than half of the allocation for the ‘Central Sector Scheme’ (excluding capital outlay on Defence and Subsidy). (iii) Transfers to States and Union Territories (including their share of taxes and duties, Finance Commission transfers, and Centrally Sponsored Schemes) collectively represent a larger portion of expenditure than all direct central government schemes and other operational expenses combined. Select the correct answer using the code given below: