UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Fiscal and Monetary Policy

  • question_answer
          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.

    A) 1 only              

    B)        2 and 3 only

    C) 1, 2, 3 and 4 

    D)        None

    Correct Answer: C

    Solution :

    Non-plan expenditure covers interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, defence, loans to public enterprises, loans to States, Union Territories and foreign governments.


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