Question

Consider the following expenditures:
1. Interest payments
2. Subsidies
3. Defence expenditure
Which of the expenditures given above is/are Non-Plan Revenue Expenditure?

• A. 1 and 2
• B. 1 and 3
• C. Only 1
• D. All of those

Answer 1

The correct option is D All of those

Non Plan Revenue Expenditure consists of the followig:

1) Interest paid (on whatever loan Union had taken)

2) Subsidies, freebies, Debt relief to farmers

3) Defense revenue Expenditure (lightbill, phonebill, diesel, bullets etc.)

4) Salaries and pensions

5) Losses in Postal dept (deficit)

6) Grants given to States/UT/Foreign nations.