Correct option is A
Under the Employees' State Insurance (ESI) Act, 1948, the state government contributes 3/8 (or 37.5%) of the expenditure on medical care, while the remaining cost is borne by the ESI Corporation.
· (a) 3/8 – Correct answer, as per ESI Act, 1948, the state government contributes 3/8 of the total medical expenditure.
· (b) 5% – Incorrect, as this is not the official share of medical expenditure under the ESI Act.
· (c) 7/8 – Incorrect, as the state government does not bear this high proportion of costs.
· (d) 9% – Incorrect, as 9% is not the correct share specified under the ESI Act, 1948.