Q. Which of the following statements correct defines the term ‘Off-Budget Debt’?

[A] These are borrowings taken by the Centre to pay off the liabilities or NPAs of Important financial institutions or banks.

[B] These are borrowings taken not by the Centre directly, but by another public institution on the direction of government.

[C] These are borrowings taken by the government, to spend on the activities of central intelligence to maintain secrecy.

[D] These are the borrowings taken by the center, for payment of salaries of constitutional bodies.

Answer: B
Notes:

Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution which borrows on the directions of the central government. Such borrowings are used to fulfil the government’s expenditure needs.

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