Q1. Which of the following are among the non-plan expenditures of the Government of India?
1. Defence expenditure
2. Subsidies
3. All expenditures linked with the previous plan periods
4. Interest payment Codes:
1. Defence expenditure
2. Subsidies
3. All expenditures linked with the previous plan periods
4. Interest payment Codes:
Explanation
Option (d) is correct:
Non-plan expenditure refers to all recurring and obligatory expenses of the government, which are not associated with specific planned development projects. It includes:
Defence expenditure: A significant part of non-plan expenditure allocated for maintaining the country’s security. Subsidies: Expenditures on subsidies like food, fertilizers, and petroleum products are non-plan in nature. Expenditures linked to previous plans: Commitments made during past plan periods, like spillovers of plan projects, also fall under non-plan expenditure. Interest payments: Payments on borrowings are a substantial component of non-plan expenditure and have consistently been the largest contributor.