Previous Year Question
Which one of the following is not true about the total outlay in the Union Budget 2023-24?
Interest payment (20%)
State share of taxes and duties (18%)
Defence (8%)
Subsidies (9%)
Correct Answer: D
Detailed Solution
Under the “Rupee Goes To” distribution in Budget 2023-24, the major shares of Government expenditure were—
Interest Payments → 20%
States' Share of Taxes and Duties → 18%
Central Sector Schemes → 17%
Centrally Sponsored Schemes → 9%
Finance Commission and Other Transfers → 9%
Defence → 8%
Other Expenditure → 8%
Subsidies → 7%
Pensions → 4%.
Therefore, statement (a) is correct. Around 20 paise of every budgetary rupee was allocated towards Interest Payments.
Statement (b) is correct. The States' Share of Taxes and Duties was approximately 18%.
Statement (c) is correct. Defence accounted for around 8%.
Statement (d) is incorrect. Subsidies accounted for 7%, not 9%.
The confusion can arise because two other expenditure heads were shown at 9%—
Centrally Sponsored Schemes → 9%
Finance Commission & Other Transfers → 9%
Whereas—
Subsidies → only 7%