UPSC Prelims 1995·GS1·economy·planning

The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from

Dalvoy logo
Reviewed by Dalvoy
UPSC Civil Services preparation
Last updated 23 May 2026, 3:31 pm IST
  1. Abalance from current revenue
  2. Bcontribution of public enterprises
  3. Cgovernment borrowingsCorrect
  4. 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.
economy: The largest source of financing the public sector outlay of the Eighth Five-Year Plan comes from
ShareWhatsAppXTelegram

Related questions

More UPSC Prelims practice from the same subject and topic.