Consider the following statements with respect to the Union Budget 2025-26:
1. Borrowing and other liabilities contributed as the largest component of the receipts.
2. Interest Payments took the maximum proportion of the government expenditure.
3. The Fiscal deficit is targeted at 4.4% of the Gross Domestic Product.
Which of the statements given above are correct ?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Explanation Statement 1 is correct: The Following are the sources of overall receipts (capital and revenue) as per the Union Budget 2025-26:
1. Borrowing and other liabilities = 24%
2. Income Tax = 22%
3. GST & other taxes = 18%
4. Corporation tax = 17%
5. Non-tax receipts = 9%
6. Union Excise duties = 5%
7. Customs = 4%
8. Non-Debt Capital Receipts = 1%
Statement 2 is not correct: The Following are the destinations of overall expenditure (capital and revenue) as per the Union Budget 2025-26:
1. States share of Taxes and Duties = 22%
2. Interest payments = 20%
3. Central sector scheme (excluding capital outlay on Defence and Subsidy=16%
4. Defence = 8%
5. Finance commission and other transfers = 8%
6. Centrally sponsored scheme = 8%
7. Other expenditures = 8%
8. Major subsidies = 6%
9. Pensions = 4%
Statement 3 is correct: The Fiscal year 2024-25 is estimated to end with a fiscal deficit of 4.8%. The budgetary estimates target it to bring it down to 4.4% in the Fiscal Year 2025-26.
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