Question

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 codes given below.

• A. Only 1
• B. 2 and 3
• C. 1, 2, 3 and 4
• D. None of these

Answer 1

The correct option is C 1, 2, 3 and 4

Non-plan expenditure constitutes the dominant portion of budget expenditure. These expenses are spread across defence, interest payments for debt, subsidies (especially for food and fertilisers) and salaries and pensions of employees in various government services.