Q: With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
a) Defence -expenditure
b) Interest payments
c) Salaries and pensions
d) Subsidies
The correct answer is 1, 2, 3, and 4.
Non Plan Expenditure
⦁ All expenditures which are done in the name of planning were called plan expenditures while the rest are placed under non-plan expenditures.
⦁ The government of India has now scrapped the plan and non-plan expenditures in budget exercise and are replaced by capital and revenue spending classifications.
Example of Non-plan expenditure
⦁ Expenditure incurred on Defence Services
⦁ Interest payments for debt
⦁ Subsidies (food, fertilisers, etc.)
⦁ Salaries and pensions of employees in various government services
⦁ Economic services by the government such as Agriculture, Industry, Power, Science & Technology,
⦁ Loans and grants
⦁ Social services such as healthcare, education, social security
⦁ Police, etc.
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