How have public sector undertakings responded to the decline in budgetary support from the central government?

By generating their own resources

The correct answer is option 2- By generating their own resources.

Public sector undertakings responded to the decline in budgetary support from the central government by generating their own resources.

The central government’s budgetary support for financing the public sector outlays has declined over the years. The public sector undertakings have realised that, in order to survive and grow, they will have to be more efficient and generate their own resources for the purpose.