Correct Option
(B) The Interim Government of India was formed on September 2, 1946. The Muslim League initially boycotted the government but subsequently joined it on October 26, 1946. Upon their induction, Liaquat Ali Khan was assigned the portfolio of Finance. His role included presenting the 'Poor Man's Budget', which proposed significant reductions in military expenditure, a move often viewed as an attempt to limit the influence of Congress-controlled ministries.
Incorrect Options
Foreign affairs: This portfolio was held by Jawaharlal Nehru, who also served as the Vice-President of the Executive Council in the Interim Government.
Home: Sardar Vallabhbhai Patel was responsible for the Home Affairs portfolio in the Interim Government.
Defence: Sardar Baldev Singh was assigned the Defence portfolio in the Interim Government.