Interest payment as percent of revenue expenditure of Central Government is currently:
In the 2004-05 Union budget estimates, interest payments were about Rs. 1,29,500 crore against revenue expenditure of about Rs. 3,85,493 crore, roughly 33.6%; the 2003-04…
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Interest payment as percent of revenue expenditure of Central Government is currently:
Answer and explanation
Correct answer D
In the 2004-05 Union budget estimates, interest payments were about Rs. 1,29,500 crore against revenue expenditure of about Rs. 3,85,493 crore, roughly 33.6%; the 2003-04 figures give about 34.4%. Interest was the largest single item of revenue expenditure, so about 35% is the closest figure. Values of 15% to 30% understate the burden of interest at that time.
The share has stayed high since: in the 2025-26 budget estimates interest took about 32% of the Centre's revenue expenditure.
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UGC NET Economics