The following Table shows the percentage distribution of revenue expenditure of Government of India in 1989-90 and 1994-95: Expenditure Head (percent to total) Years - Defence - Interest Payments - Subsidies - Grants to States/Uts - Other 1989-90 - 15.1 - 27.7 - 16.3 - 13.6 - 27.4 1994-95 - 13.6 - 38.7 - 8.0 - 16.7 - 23.0 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

1. The table shows the percentage distribution of the Central Government's revenue expenditure across different heads for 1989-90 and 1994-95. 2. To assess the pressure on the Indian economy based on this data, we look for significant and potentially problematic trends in expenditure. 3. Comparing 1994-95 to 1989-90: - Defence expenditure share decreased (15.1% to 13.6%). - Interest Payments share increased significantly (27.7% to 38.7%). - Subsidies share decreased sharply (16.3% to 8.0%). - Grants to States/UTs share increased slightly (13.6% to 16.7%). - Other expenditure share decreased (27.4% to 23.0%). 4. The most striking change is the large increase in the share of interest payments, indicating a growing burden of debt servicing. High and rising interest payments consume a large portion of revenue, leaving less for other productive expenditures and indicating potential fiscal stress. 5. Therefore, the pressure to spend more on interest payments reflects a challenging economic situation.