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 b

examrobotsa's picture

Submitted by examrobotsa on

Q: 97 (IAS/1997)
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 :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,129,17,5,2,10,129

keywords: 

{'maintenance expenditure': [0, 1, 0, 0], 'defence expenditure': [0, 1, 0, 0], 'subsidies': [1, 0, 0, 1], 'infrastructure': [1, 4, 4, 6], 'previous plans': [0, 1, 0, 0], 'interest payments': [1, 2, 3, 2]}

Non-plan expenditure refers to the expenses that the government incurs not related to any planned economic development.

Option 1: Subsidies (I) are monetary help provided by the government to persons or groups, not linked with any development project hence it`s a non-plan expenditure. Interest payments (II) are incurred on the loans taken by the government to fund its expenditures and are non-plan.

Option 2: Subsidies (I) have been discussed already. Defence expenditure (III) are not associated with economic growth or development, hence, non-plan.

Option 3: Interest payments (II) and maintenance expenditure for the infrastructure created in the previous plans (IV) are both non-plan expenditures as they do not contribute to any current development plan.

Option 4 includes all (I, II, III, IV) the expenditures discussed above which come under non-plan expenditure.

Therefore, the correct answer is option 4, that is, all of them (I, II, III, and IV) are non-plan expenditures.