Which of the following are among the non-plan expenditures of the Government of India?1. Defence expenditure2. Subsidies3. All expenditures linked with the previous plan periods4. Interest paymentCodes:
✓ Correct answer: d) 1, 2, 3 and 4
ExplanationOption (d) is correct: Non-plan expenditure refers to all recurring and obligatory expenses of the government, which are not associated with specific planned development projects.It includes:Defence expenditure: A significant part of non-plan expenditure allocated for maintaining the country’s security.Subsidies: Expenditures on subsidies like food, fertilizers, and petroleum products are non-plan in nature.Expenditures linked to previous plans: Commitments made during past plan periods, like spillovers of plan projects, also fall under non-plan expenditure.Interest payments: Payments on borrowings are a substantial component of non-plan expenditure and have consistently been the largest contributor.10. EXTERNAL SECTOR OF INDIA 249
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →