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.
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.
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