Which of the following come under Non-plan expenditure?
1. I. Subsidies
2. II. Interest payments
3. III. Defence expenditure
4. IV. Maintenance expenditure for the infrastructure created in the previous plans
Choose the correct answer using the codes given below:
Codes:
Correct Answer: Option D
Explanation
1. Before the classification was abolished (from Budget 2017-18), Indian government expenditure was categorized into Plan and Non-plan expenditure.
2. Non-plan expenditure represented the government's committed and routine spending required for maintaining essential services and administrative functions.
3. This category included major items such as:
- Subsidies (like food, fertilizers, fuel) (I)
- Interest payments on government debt (II)
- Defence expenditure (III)
- Salaries, pensions, and administrative costs
- Maintenance expenditure for infrastructure and assets created in previous plans (IV).
4. Therefore, all four items listed (Subsidies, Interest payments, Defence expenditure, and Maintenance expenditure) were considered part of Non-plan expenditure under the previous budgeting system.
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