Question:
According to their relative importance in total expenditure, the main components of recurrent expenditure of Sri Lankan government can be ranked as
(1) transfers, interest, salaries.
(2) salaries, interest, transfers.
(3) transfers to public institutions, interest, salaries.
(4) transfers, salaries, interest.
(5) interest payments, transfers to public institutions, transfers to households.
Correct Answer:
(2)
Answer Explanation:
For decades, the Sri Lankan government’s recurrent expenditure has been overwhelmingly dominated by two massive line items: Salaries and Wages for a bloated public sector workforce, and Interest Payments on accumulated sovereign debt. Following these are social welfare transfers to households (like Samurdhi/pensions).
Topic: Public Finance Year: 2017
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