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 I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
