The portfolio composition of the government refers to
aPublic sector assets quality.
bInvestment in liquid assets.
cMix of government investment in different industrial sectors.
dBuying Return on Investment yielding capital assets.
AnswerUPSC’s answer is (c).
In the passage, the government's portfolio composition is a question of which activities the state should hold and which it should leave to private firms: airlines can be wholly private, while rural roads, public health facilities and forest protection need public ownership. It should change over time. So it means the mix of government investment across sectors. Asset quality, liquidity and returns are not what it refers to.
Why each option is right or wrong
(a) The quality of public assets is not the subject.
(b) Liquid assets are not discussed.
(c) Right. It means the mix of government investment across sectors.
(d) Return-yielding assets are not what portfolio composition means here.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
