The following Table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95: Years Expenditure Head (per cent to total) Defence Interest-Payments Subsidies Grants to States/ UTs Others 1989-90 15.1 27.7 16.3 13.6 27.4 1994-95 13.6 38.7 8.0 16.7 23.0 Based on this table, it can be said that the Indian economy is in poor shape because the Central Government continues to be under pressure to
Options
(a)reduce expenditure of defence
(b)spend more and more on interest payments
(c)reduce expenditure on subsidies
(d)spend more and more as grants-in-aid to State Governments/Union Territories
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