Question:
The highest component of the of government recurrent expenditure in Sri Lanka in the year 2020 was
(1) wages and salaries.
(2) government transfers and subsidies.
(3) pensions.
(4) interest payments.
(5) fertilizer subsidy.
Correct Answer:
(4)
Answer Explanation:
Due to a highly accumulated public debt burden over decades, interest payments on existing domestic and foreign debt consumed the largest proportion of government recurrent expenditure in Sri Lanka during the 2020 fiscal year.
Topic: Public Finance Year: 2022
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