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.

UPSC Prelims 2014: With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure? — Answer & Explanation

Prelims 2014 · archive

Easy

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.

Answer & explanation

Answer: (c) 1, 2, 3 and 4

All four are covered. Before 2017-18, Non-Plan Expenditure in the Union Budget meant all government spending not included in the Plan. Its main items were interest payments, defence services, subsidies, salaries and pensions.

✓ 1. Defence services are one of the main items of non-plan expenditure.
✓ 2. Interest payments on government debt are a main item of non-plan expenditure.
✓ 3. Salaries and pensions are listed among the main items of non-plan expenditure.
✓ 4. Explicit subsidies provided by the government also form part of non-plan expenditure.
• Since then The Plan and Non-Plan classification was done away with from fiscal 2017-18.

Remember · Non-Plan Expenditure = all government spending outside the Plan, whether revenue or capital. Its main items are interest payments, defence, subsidies, salaries and pensions. The classification ended from 2017-18.

📘 Read it in NCERT: Class 12 Introductory Macroeconomics, Ch 5 (practise this chapter)

Sources

NCERT Class 12 · Introductory Macroeconomics, Chapter 5 “The main items of non-plan expenditure are interest payments, defence services, subsidies, salaries and pensions.”
Expenditure Budget Vol. I, 2005-2006 – Non-Plan Expenditure (Ministry of Finance) ↗ “Non-Plan expenditure is a generic term, which is used to cover all expenditure of Government not included in the Plan. It may either be revenue expenditure or capital expenditure.”
Arthapedia, Indian Economic Service (ies.gov.in) – Non Plan Expenditure ↗ “Expenditure on salaries as well as explicit subsidies provided by the Government also form part of non-plan expenditure.”
PIB, Ministry of Finance – Plan–Non Plan Classification To Be Done Away from Fiscal 2017-18 ↗ “The Plan and Non-Plan classification will be done away with from fiscal 2017-18.”

Question: UPSC Civil Services (Preliminary) 2014, General Studies paper. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

Prelims 2014 · archive

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