Official Answer Key & Detailed Solution
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Correct Answer: Option (C) — 1, 2, 3 and 4
Concept & Option Breakdown
Standard Reference VerifiedPrior to the 2017 budgetary reforms that merged Plan and Non-Plan classifications, Non-Plan Expenditure encompassed all obligatory, committed, and routine governmental expenditures, including:
- Defence expenditure
- Interest payments on domestic and external debt
- Salaries and pensions of government employees
- Subsidies on food, fertilizers, and petroleum.
All recurring obligatory liabilities of the government (defence, interest, salaries, pensions, subsidies) fell under Non-Plan spending.
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