The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from
- Abalance from current revenue
- Bcontribution of public enterprises
- Cgovernment borrowingsCorrect
- Ddeficit financing
Explanation
The Eighth Five Year Plan 1992 to 1997 faced a significant shortage of internal resources from current revenue and public enterprises. To bridge the gap for the public sector outlay, the government relied heavily on domestic and market borrowings. Government borrowings, which included small savings and market loans, accounted for the largest share of the total resources mobilized for the plan. This shift reflected the fiscal challenges of the period and the transition toward market based financing following the 1991 economic reforms.
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