Q. Consider the following statements:
1.The committed expenditure of the State Government on revenue accounts consists of interest payments, expenditure on salaries and wages, and pensions.
2.If the Committed Expenditure is higher, it means that the government has lesser flexibility to determine the purpose for which revenue expenditure is to be incurred.
Which of the statements given above is/are correct?–

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Statement 1 and 2 are correct. The committed expenditure of the State Government on revenue accounts consists of interest payments, expenditure on salaries and wages, and pensions. If the Committed Expenditure is higher, it means that the government has lesser flexibility to determine the purpose for which revenue expenditure is to be incurred.

Source: ForumIAS