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According to 2019-20 (budget estimates) what percentage of total expenditure is to be spent on salary, pension, interest payments and subsidies in Himachal Pradesh?

HPPSC · 2021 · GS1
Question:
According to 2019-20 (budget estimates) what percentage of total expenditure is to be spent on salary, pension, interest payments and subsidies in Himachal Pradesh?

Options

(1) 39%
(2) 49%
(3) 59%
(4) 69%
Answer: (3) 59%

Explanation:
As per the Himachal Pradesh Budget Estimates 2019-20, approximately 59% of the total expenditure was earmarked for committed expenditure items — salary, pension, interest payments, and subsidies combined. This high committed expenditure ratio reflects HP's status as a small hill state heavily dependent on Central transfers, with a large government workforce relative to its tax base, significantly constraining its fiscal space for capital/development expenditure.

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