UPSC Prelims 1997 · General Studies
Question 97: Economy and Social Development
Which of the following come under Non-plan expenditure? I. Subsidies II. Interest payments III. Defence expenditure IV. Maintenance expenditure for the infrastructure created in the previous plans Choose the correct answer using the codes given below: Codes:
AnswerThe answer is (d).
Non-plan expenditure is the government's spending that is not part of the Five-Year Plan. Interest payments, subsidies, defence spending and the cost of running and maintaining assets created under earlier plans all come under it. So all four items are non-plan expenditure. Remember the big non-plan heads: interest, defence and subsidies.
- I. Subsidies are non-plan expenditure.
- II. Interest payments are non-plan expenditure.
- III. Defence expenditure is non-plan.
- IV. Maintenance of infrastructure built under earlier plans is non-plan.
Why each option is right or wrong
- (a) I and II are non-plan, but so are III and IV.
- (b) I and III are non-plan, but so are II and IV.
- (c) II and IV are non-plan, but so are I and III.
- (d) Right: all four are non-plan expenditure.
Worth knowing: The plan and non-plan classification was abolished from 2017-18, when the Union Budget moved to revenue and capital expenditure.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1997, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.