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 code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1, 2, 3 and 4
(d) None
Answer:
C
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Explanation:
Non-Plan Expenditure in the Union Budget refers to the expenditure that is not directly allocated for specific development plans or schemes. It includes various recurring expenses of the government. The items covered under Non-Plan Expenditure include:
Defence expenditure: This includes the budget allocation for defense-related activities and defense forces.
Interest payments: This refers to the payment of interest on government borrowings and loans.
Salaries and pensions: This includes the salaries and pensions of government employees, such as civil servants and defense personnel.
Subsidies: This refers to the financial assistance provided by the government to various sectors, such as food subsidies, fuel subsidies, and fertilizer subsidies.