Answer: (c) 1, 2, 3, and 4
Explanation:
In the context of the Indian Union Budget, expenditures are traditionally categorized into two main types: Plan and Non-Plan Expenditure. This categorization has since been replaced by Revenue and Capital Expenditure classifications, but the question refers to the earlier system.
Non-Plan Expenditure generally covered recurring expenses necessary for the day-to-day functioning of the government. This included:
- Defence Expenditure: The cost of maintaining the armed forces, which is a significant component of the government's expenditure and is considered non-discretionary or non-plan as it is recurring and essential.
- Interest Payments: Payments made by the government on its borrowings (both internal and external) are a substantial part of Non-Plan Expenditure. These are mandatory payments that the government must make to service its debt.
- Salaries and Pensions: The salaries of government employees and pensions paid to retired personnel are recurring expenses that the government incurs regularly. These payments are classified under Non-Plan Expenditure because they are obligatory and do not depend on specific developmental plans.
- Subsidies: These are financial assistance provided by the government to various sectors (like agriculture, food, fuel) to promote economic and social welfare. Subsidies are part of Non-Plan Expenditure because they are ongoing and not linked to specific projects or plans.
Given this understanding, all the listed items (1, 2, 3, and 4) were part of Non-Plan Expenditure under the budgetary framework of that time, making the correct answer (c) 1, 2, 3, and 4.
In 2017, the distinction between Plan and Non-Plan Expenditure was abolished to simplify the budgetary process. The government now classifies expenditures as Capital Expenditure (for creating assets) and Revenue Expenditure (for the regular functioning of the government). This change aims to improve budget transparency and efficiency in resource allocation.
Answer: (c) 1, 2, 3, and 4
Explanation:
In the context of the Indian Union Budget, expenditures are traditionally categorized into two main types: Plan and Non-Plan Expenditure. This categorization has since been replaced by Revenue and Capital Expenditure classifications, but the question refers to the earlier system.
Non-Plan Expenditure generally covered recurring expenses necessary for the day-to-day functioning of the government. This included:
- Defence Expenditure: The cost of maintaining the armed forces, which is a significant component of the government's expenditure and is considered non-discretionary or non-plan as it is recurring and essential.
- Interest Payments: Payments made by the government on its borrowings (both internal and external) are a substantial part of Non-Plan Expenditure. These are mandatory payments that the government must make to service its debt.
- Salaries and Pensions: The salaries of government employees and pensions paid to retired personnel are recurring expenses that the government incurs regularly. These payments are classified under Non-Plan Expenditure because they are obligatory and do not depend on specific developmental plans.
- Subsidies: These are financial assistance provided by the government to various sectors (like agriculture, food, fuel) to promote economic and social welfare. Subsidies are part of Non-Plan Expenditure because they are ongoing and not linked to specific projects or plans.
Given this understanding, all the listed items (1, 2, 3, and 4) were part of Non-Plan Expenditure under the budgetary framework of that time, making the correct answer (c) 1, 2, 3, and 4.
In 2017, the distinction between Plan and Non-Plan Expenditure was abolished to simplify the budgetary process. The government now classifies expenditures as Capital Expenditure (for creating assets) and Revenue Expenditure (for the regular functioning of the government). This change aims to improve budget transparency and efficiency in resource allocation.
Answer: (c) 1, 2, 3, and 4
Explanation:
In the context of the Indian Union Budget, expenditures are traditionally categorized into two main types: Plan and Non-Plan Expenditure. This categorization has since been replaced by Revenue and Capital Expenditure classifications, but the question refers to the earlier system.
Non-Plan Expenditure generally covered recurring expenses necessary for the day-to-day functioning of the government. This included:
- Defence Expenditure: The cost of maintaining the armed forces, which is a significant component of the government's expenditure and is considered non-discretionary or non-plan as it is recurring and essential.
- Interest Payments: Payments made by the government on its borrowings (both internal and external) are a substantial part of Non-Plan Expenditure. These are mandatory payments that the government must make to service its debt.
- Salaries and Pensions: The salaries of government employees and pensions paid to retired personnel are recurring expenses that the government incurs regularly. These payments are classified under Non-Plan Expenditure because they are obligatory and do not depend on specific developmental plans.
- Subsidies: These are financial assistance provided by the government to various sectors (like agriculture, food, fuel) to promote economic and social welfare. Subsidies are part of Non-Plan Expenditure because they are ongoing and not linked to specific projects or plans.
Given this understanding, all the listed items (1, 2, 3, and 4) were part of Non-Plan Expenditure under the budgetary framework of that time, making the correct answer (c) 1, 2, 3, and 4.
In 2017, the distinction between Plan and Non-Plan Expenditure was abolished to simplify the budgetary process. The government now classifies expenditures as Capital Expenditure (for creating assets) and Revenue Expenditure (for the regular functioning of the government). This change aims to improve budget transparency and efficiency in resource allocation.