GS PrelimsEconomyBudget2014

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies Select the correct answer using the code given below.

A

1 only

B

2 and 3 only

C

1, 2, 3 and 4

D

None

Correct Answer: Option C

Explanation

1. Non-Plan Expenditure (a classification used prior to 2017-18) primarily included committed expenditures of the government, covering essential routine functions and liabilities. 2. Defence expenditure, covering salaries, pensions, and capital outlay for defence services, was largely categorized under Non-Plan Expenditure. 3. Interest payments on government debt (both internal and external) were a major component of Non-Plan Expenditure. 4. Salaries and pensions for government employees constituted a significant part of the routine, committed expenditure classified as Non-Plan. 5. Government subsidies (e.g., food, fertilizer, fuel) were also treated as Non-Plan Expenditure. Therefore, all the given items (1, 2, 3, and 4) were covered under Non-Plan Expenditure in the Union Budget during the period this classification was used.

More Economy PYQs

View all Economy questions →

Master UPSC Revision

Get 10,000+ topic-wise MCQs, spaced repetition, daily CSAT challenges, and detailed performance analytics.

Coming Soon to Play Store
Coming Soon to Play Store