With reference to Union Budget, which of the following is/are covered

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.

1 only
2 and 3 only
1, 2 and 3 and 4
None
This question was previously asked in
UPSC IAS – 2014
All four listed items fall under the traditional definition of Non-Plan Expenditure in the Union Budget.
Non-Plan Expenditure refers to the government’s essential or committed expenditures that are not directly linked to specific central plans or schemes. These include expenditures necessary for the functioning of the government and basic services.
Defence expenditure is a major component of non-plan expenditure.
Interest payments on the government’s borrowing constitute a significant portion of non-plan expenditure and are mandatory obligations.
Salaries and pensions for government employees are committed expenditures and fall under non-plan expenditure.
Subsidies (e.g., for food, fertilizers, petroleum) are also typically treated as non-plan expenditure aimed at providing support to specific sectors or populations.
The distinction between Plan and Non-Plan Expenditure was abolished starting from the Union Budget 2017-18. Expenditures are now classified based on Capital and Revenue accounts and outcomes. However, questions based on the older classification may still appear in exams referencing past budgets. Under the new system, these expenditures would still be classified, primarily under the Revenue account, but the “non-plan” label is no longer used for budget presentation.
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