The following table shows the percentage…

The following table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95:

Based on this table, it can be said that the Indian economy is in poor shape because the Central government continues to be under pressure to:

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reduce expenditure on defence

spend more and more on interest payments

reduce expenditure on subsidies

spend more and more as grants-in-aid to State government/Union Territories.