2025 · Q17
Which one among the following items of expenditure received the highest allocations in the Union Budget, 2025-26?
indian-polity-economyfiscal-external
- ACentrally sponsored schemes
- BPensions
- CInterest payments
- DDefence
Explanation
In the Union Budget 2025-26, interest payments received the highest allocation at about Rs. 12.76 lakh crore — roughly one-fourth of total expenditure and larger than the allocations for defence, subsidies, centrally sponsored schemes and pensions. This reflects India's large debt-servicing burden. Hence interest payments is the answer.