He also noted that as the productivity of government expenditure is generally lower than that of private expenditure, it makes sense if the government undertakes only those expenditures that deliver benefits commensurate with the benefits forgone on the resources raised from the private sector.
In 2019-20, the government spent Rs 5.46 trillion as establishment expenditure and Rs 6.60 trillion as interest payments.
The establishment expenditure is to take care of salaries, dearness and other allowances, pensions and other establishment-related expenditures such as travelling allowances.
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