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The single largest component of non-plan revenue expenditure is:

AInterest payments
BDefence services
CFood subsidies
DStaff pensions
Answer & Solution
Correct answer: A. Interest payments
1. Defence is committed expenditure too. 2. Interest payments are the largest item. 3. Subsidies aim to increase welfare. _Source: syllabus Introductory Macroeconomics, Chapter 5, Government Budget and the Economy._
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