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.

examrobotsa's picture

Submitted by examrobotsa on

QE: 100 (IAS/2014)
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.

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,128,73,18,30,128,25

keywords: 

{'union budget': [1, 0, 2, 2], 'pensions': [0, 0, 0, 1], 'subsidies': [1, 0, 0, 1], 'salaries': [1, 0, 1, 0], 'interest payments': [1, 2, 3, 2], 'none': [2, 0, 8, 15]}

The Union Budget classifies government expenditure under two broad categories: Plan Expenditure and Non-Plan Expenditure.

Plan Expenditure includes the expenditure on the government`s plan schemes, which are designed to achieve specific development goals.

Non-Plan Expenditure includes all other government expenditure that does not come under Plan Expenditure.

The components of Non-Plan Expenditure include, but are not limited to:

1. Defence expenditure

2. Interest payments

3. Salaries and pensions

4. Subsidies

Therefore, the correct answer is "1, 2, 3, and 4".