Which of the following are among the non-plan expenditures of the Government of India?
1. I. Defence expenditure
2. II. Subsidies
3. III. All expenditures linked with the previous plan periods
4. IV. Interest payment
Choose the correct answer from the codes given below:
Correct Answer: Option D
Explanation
1. The question asks to identify items that fall under non-plan expenditure of the Government of India.
2. Government expenditure is broadly classified into Plan Expenditure (related to Five-Year Plans, focused on development projects) and Non-Plan Expenditure (covers routine functioning, committed liabilities, etc.). This classification was used until the 2017-18 budget.
3. I. Defence expenditure: Generally considered non-plan expenditure as it relates to national security and maintenance, not specific plan projects.
4. II. Subsidies: Such as food, fertilizer, and fuel subsidies are recurring expenditures and typically classified under non-plan expenditure.
5. III. All expenditures linked with the previous plan periods: Maintenance of assets created in previous plans, salaries of staff recruited for previous plan schemes continued, etc., fall under non-plan expenditure.
6. IV. Interest payment: Payments on government debt are a major component of committed non-plan expenditure.
7. Therefore, all four items listed – Defence expenditure, Subsidies, expenditures linked with previous plan periods, and Interest payment – were traditionally classified as non-plan expenditure.
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