Question:
The biggest component of government recurrent expenditure in Sri Lanka at present is
(1) interest payments.
(2) salaries and wages.
(3) pension payments.
(4) fertilizer subsidy.
(5) current transfers to public corporations.
Correct Answer:
(1)
Answer Explanation:
For many years leading up to and including 2019, the single largest line item in the Sri Lankan government’s recurrent expenditure budget was the massive cost of servicing its sovereign debt—specifically, the interest payments required on both domestic and foreign loans.
Topic: Public Finance Year: 2019
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