2014 GS Paper I, all questions

UPSC Prelims 2014 · GS Paper I

Question 100: Economy and Social Development

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

  1. 1.Defence expenditure
  2. 2.Interest payments
  3. 3.Salaries and pensions
  4. 4.Subsidies

Select the correct answer using the code given below.

a1 only
b2 and 3 only
c1, 2, 3 and 4
dNone

AnswerUPSC’s answer is (c).

Non-Plan expenditure in the Union Budget covered the spending that is not part of the Five-Year Plans: the running costs of government and its commitments. Defence expenditure, interest payments, salaries and pensions, and subsidies all fall under it. That is why all four items count as Non-Plan expenditure, the largest items being interest payments, defence and subsidies.

  • 1. Defence spending is Non-Plan.
  • 2. Interest payments are Non-Plan.
  • 3. Salaries and pensions are Non-Plan.
  • 4. Subsidies are Non-Plan.
Why each option is right or wrong
  • (a) Wrong. Interest, salaries and subsidies are also Non-Plan.
  • (b) Wrong. Defence and subsidies are also Non-Plan.
  • (c) Right. All four are Non-Plan expenditure.
  • (d) Wrong. These are all Non-Plan items.

Worth knowing: The Plan and Non-Plan distinction was removed from the Union Budget from 2017-18, which now classifies spending as revenue and capital.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2014, General Studies Paper I, Series A. The paper on upsc.gov.in.