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UPSC 1995: 95. The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from
(a)balance from current revenue
(b)contribution of public enterprises
(c)government borrowings
(d)deficit financing
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Not attemptedCorrect Answer: (d) deficit financing
Budget documents for the Eighth Plan (1992-97) show that the largest single source for financing the public-sector outlay was deficit financing—borrowing from the RBI that expands the money supply. Government borrowings and internal surpluses were smaller contributors, making option (d) the right choice. ([edukemy.com](https://edukemy.com/blog/upsc-prelims-topic-wise-questions-indian-economy-economy-of-india/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (d): deficit financing. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Economic Planning & Five-Year Plans question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 95. It falls under Indian Economy > Economic Planning & Five-Year Plans.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Economic Planning & Five-Year Plans?▼
UPSC has asked 19 questions from Economic Planning & Five-Year Plans (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.