With reference to the Indian Public Finance, consider the following statements:

Monjur Alahi

With reference to the Indian Public Finance, consider the following statements:

1. External liabilities reported in the Union Budget are based on historical exchange rates

2. The continued high borrowing has kept the real interest rates high in the economy

3. The upward trend in the ratio of Fiscal Deficit of GDP a recent years has an adverse effect on private investment

4. Interest payments is the single largest component of the non-plan revenue expenditure of the Union Government

Which of these statements are correct?

(a) 1, 2 and 3 (b) 1 and 4 (c) 2, 3 and 4 (d) 1, 2, 3 and 4


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Salim Ahmed Kawsar

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(c) 2, 3 and 4 

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