Q.With reference to the Indian Public Finance, consider the following statements. 1. External liabilities reported in the Union Budget are based on historical exchange rates. 2. The continued high borrowing has kept the real interest rates high in the economy. 3. The upward trend in the ratio of Fiscal deficit of GDP a recent years has an adverse effect on private investment. 4. Interest payment is the single largest component of the nonplan revenue expenditure of the Union Government. Which of these statements are correct?
Correct answer: 2, 3 and 4