The correct answer is Internal liabilities. Explanation & Key Takeaways: • Part XII from Article 294 to 300 deals with the property, contracts, rights, liabilities, obligations and suits of the centre and the states. • Government liabilities have been broadly classified as debt contracted against the Consolidated Fund of India (defined as Public Debt) and liabilities in the Public Account, called Other Liabilities. • Public debt is further classified into internal and external debt. • External Liability – All obligations which a business has to pay back to external parties i.e. lenders, vendors, etc. are termed as external liabilities. Example – Borrowings, Creditors, Taxes, Overdraft, etc. • Internal Liability – All obligations which a business has to pay back to internal parties such as promoters (owners), employees, etc. are termed as internal liabilities. Example – Capital, Salaries, Accumulated profits, etc. • Internal debt is a class of national debt that has to do with the money owed by the government to lenders based in that same country. • During 1983-84 to 2011-12, Domestic liabilities of the Centre ranged from 31.77% to 59.64%, while External liabilities of the Centre ranged from 2.6% to 16%. (Percentage to GDP) • Total internal liabilities: Internal debt + Small savings, deposits & provident funds + Other accounts + Reserve funds and deposits. • Hence, during 1983-84 to 2011-12 Internal liabilities of the central Govt. are higher in total liabilities.