UPSC CSE Prelims
Question 64
With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?
- Defence expenditure
- Interest payments
- Salaries and pensions
- Subsidies
Select the correct answer using the code given below.
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Under the pre-2017 Plan/Non-Plan budget classification, defence, interest payments, routine salaries/pensions and most subsidies were major Non-Plan expenditures.
Statement/Pair-wise Analysis:
Statement/Item 1: Correct - Defence spending was generally shown as Non-Plan expenditure.
Statement/Item 2: Correct - Interest payments on public debt were Non-Plan commitments.
Statement/Item 3: Correct - Regular administrative salaries and pensions were largely Non-Plan items.
Statement/Item 4: Correct - Subsidies were ordinarily part of Non-Plan expenditure.
Option-wise Analysis:
A: Incorrect - omits correct statement/items 2, 3, 4.
B: Incorrect - omits correct statement/items 1, 4.
C: Correct - includes all and only the correct items.
D: Incorrect - omits correct statement/items 1, 2, 3, 4.
Review Note: The Plan/Non-Plan expenditure distinction was discontinued beginning with the Union Budget 2017–18; the explanation describes 2014 usage.