Assertion (A): Interest payments are the largest single item of revenue expenditure for India's central government.
Reason (R): Large past borrowing has built up a big stock of debt on which interest must be paid every year.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Union Budget documents show interest as the biggest single revenue expenditure item.
That follows from the debt piled up by past deficits. R explains A.

Concept: Interest burden
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat deficits do

Practise this chapter →

Ten questions from Budget Deficits, at your own pace.

Assertion (A): Interest payments are the largest single item of revenue expenditure for India's central government.Reason (R): Large past borrowing has built up a big stock of debt on which interest must be paid every year.

Explanation

Assertion (A): Interest payments are the largest single item of revenue expenditure for India's central government.
Reason (R): Large past borrowing has built up a big stock of debt on which interest must be paid every year.