Which one of the following is not true about the total outlay in the Union Budget 2023-24?
- (a)Interest payment (20%)
- (b)State share of taxes and duties (18%)
- (c)Defence (8%)
- (d)Subsidies (9%)
Correct — D, 'Subsidies (9%)' is the statement that is NOT true. In the Union Budget 2023-24 'Budget at a Glance — where the rupee goes' chart, subsidies accounted for about 7% of the rupee (total subsidies ≈ ₹4.03 lakh crore), not 9%. The other three figures are exactly as printed — interest payments 20% (the single largest outgo), states' share of taxes and duties 18%, and defence 8% — so only the subsidies figure is misstated, making (d) the answer.
- (a)Interest payment (20%) — True — interest payments were 20% of the rupee, the single largest expenditure item; correctly stated, so not the answer.
- (b)State share of taxes and duties (18%) — True — devolution of taxes and duties to the states was 18% of the rupee; correctly stated.
- (c)Defence (8%) — True — defence took 8% of the rupee; correctly stated.
The 'Budget at a Glance' document publishes two pie charts — where the rupee comes from and where it goes. For 2023-24 the 'rupee goes to' shares were: interest 20%, states' share 18%, central sector schemes 17%, centrally sponsored schemes 9%, finance commission & other transfers 9%, defence 8%, other expenditure 8%, subsidies 7%, and pensions 4%. Interest payments are the biggest outgo, reflecting India's debt-servicing burden.
A 'which is NOT true' item testing recall of the rupee-goes-to shares. Interest (20%), states' share (18%) and defence (8%) are quoted correctly; the subsidies figure is inflated from the real 7% to 9%, so (d) is the odd one out. A near-miss trap: subsidies are ~9% of total expenditure by one calculation, but the official pie labels them 7%.
- Union Budget 2023-24 total expenditure ≈ ₹45.03 lakh crore.
- 'Rupee goes to': interest 20%, states' share 18%, central sector schemes 17%, defence 8%, subsidies 7%, pensions 4%.
- Interest payments (20%) were the single largest expenditure item.
- Total subsidies ≈ ₹4.03 lakh crore (food, fertiliser, petroleum) — about 7% of the rupee.
Subsidies were 7% of the rupee, not 9% — so option (d) 'Subsidies (9%)' is the false statement.
- Confusing 'rupee comes from' with 'rupee goes to'.
- Mixing up subsidies as a share of total expenditure (~9%) with the official pie share (7%); thinking defence, not interest, is the largest outgo.
Budget composition — 'which is/ is not correctly stated', or the largest source/outgo of the rupee.
The following Table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95 (Heads: Defence, Interest Payments, Subsidies, Grants to States/UTs, Other). 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:
- (a) reduce expenditure on 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
Answer(b) spend more and more on interest payments
Same concept — reading the composition of Union budget expenditure; interest payments dominate and keep rising.
With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies Select the correct answer using the code given below.
- (a) 1 only
- (b) 2 and 3 only
- (c) 1, 2, 3 and 4
- (d) None
Answer(c) 1, 2, 3 and 4
Same concept — the major heads that make up Union budget expenditure (defence, interest, pensions, subsidies).
- practice — not a real PYQ
In the Union Budget, the single largest item of expenditure ('where the rupee goes') is usually:
- (a)Defence
- (b)Interest payments
- (c)Subsidies
- (d)States' share of taxes
Answer(b) Interest payments (~20% of the rupee in 2023-24).
- practice — not a real PYQ
On the 'rupee comes from' side of the Union Budget 2023-24, the single largest source was:
- (a)Income tax
- (b)Goods and Services Tax
- (c)Borrowings and other liabilities
- (d)Corporation tax
Answer(c) Borrowings and other liabilities (~34% of the rupee).