{"id":2263,"date":"2024-04-26T05:22:49","date_gmt":"2024-04-25T23:52:49","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=2263"},"modified":"2024-04-26T05:22:49","modified_gmt":"2024-04-25T23:52:49","slug":"q-with-reference-to-union-budget-which-of-the-following-is-are-covered-under-non-plan-expenditure-2","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-with-reference-to-union-budget-which-of-the-following-is-are-covered-under-non-plan-expenditure-2","title":{"rendered":"Q. With reference to Union Budget, which of the following is\/are covered under Non-Plan Expenditure?"},"content":{"rendered":"\n<ol class=\"wp-block-list\">\n<li>Defence expenditure<\/li>\n\n\n\n<li>Interest payments<\/li>\n\n\n\n<li>Salaries and pensions<\/li>\n\n\n\n<li>Subsidies<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Select the correct answer using the code given below.<\/p>\n\n\n\n<ul class=\"mcq wp-block-list\">\n<li>1 only<\/li>\n\n\n\n<li>2 and 3 only<\/li>\n\n\n\n<li>1, 2, 3 and 4<\/li>\n\n\n\n<li>None<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (c) 1, 2, 3 and 4<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"plan-expenditure\"><strong>Plan Expenditure:<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All expenditures\u00a0<strong>done in the name of planning<\/strong>\u00a0(i.e. Five Year Plans) were called plan expenditures.\n<ul class=\"wp-block-list\">\n<li>For example expenditure on electricity generation, irrigation and rural developments, construction of roads, bridges, canals, etc.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The government of India has now scrapped the plan and non-plan expenditures\u00a0in budget exercise and are\u00a0replaced by\u00a0<strong>capital and revenue spending classifications<\/strong>.\u00a0<\/li>\n\n\n\n<li>Plan Expenditure was earmarked for activities\u00a0<strong>focused on creating assets, including physical, human, and social capital<\/strong>. This category aimed at fostering development and enhancing the country\u2019s infrastructure.<\/li>\n\n\n\n<li><strong>Asset Creation Examples:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Projects such as building dams, roads, power plants, and investments in social and human capital were categorized as Plan Expenditure.<\/li>\n\n\n\n<li>The goal was to contribute to\u00a0<strong>long-term development objectives<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Perverse Effects:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Despite the positive intent, the classification led to unintended consequences. Asset maintenance, crucial for the sustainability of infrastructure, was designated as Non-plan Expenditure. This led to neglect of maintenance activities, creating a false perception of skewed spending priorities.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"nonplan-expenditure\"><strong>Non-plan Expenditure:<\/strong><\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All expenditures\u00a0<strong>other than plan expenditure<\/strong>\u00a0were known as non-plan expenditure.\n<ul class=\"wp-block-list\">\n<li>For example interest payments, salaries and pensions, statutory transfers to States and Union Territories governments, defence expenditure, etc.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Non-plan Expenditure covered\u00a0<strong>maintenance activities and the upkeep of existing assets<\/strong>. This included routine expenditures to ensure the functionality and longevity of previously created infrastructure.<\/li>\n\n\n\n<li><strong>Maintenance Neglect:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The negative perception associated with Non-plan Expenditure resulted in a neglect of maintenance activities. The public viewed higher spending on maintenance as a diversion from capital formation, even though it was essential for the sustainability of assets.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"nonplan-expenditure-is-spread-across\"><strong>Non-plan expenditure is spread across:<\/strong><\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expenditure\u00a0incurred on\u00a0Defence Services<\/strong><\/li>\n\n\n\n<li><strong>Interest payments<\/strong>\u00a0for debt<\/li>\n\n\n\n<li><strong>Subsidies<\/strong>\u00a0(food, fertilisers, etc.)<\/li>\n\n\n\n<li><strong>Salaries\u00a0and\u00a0pensions\u00a0<\/strong>of employees in various government services\u00a0<\/li>\n\n\n\n<li>Economic services\u00a0by the government such as\u00a0Agriculture, Industry, Power, Science &amp; Technology,<\/li>\n\n\n\n<li><strong>Loans\u00a0and\u00a0grants<\/strong><\/li>\n\n\n\n<li><strong>Social services<\/strong>\u00a0such as healthcare, education, social security<\/li>\n\n\n\n<li><strong>Police<\/strong>, etc.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Select the correct answer using the code given below. Answer: (c) 1, 2, 3 and 4 Plan Expenditure: Non-plan Expenditure: Non-plan expenditure is spread across:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[39],"years":[59],"class_list":["post-2263","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-polity","years-59"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":39,"label":"Indian Polity"}],"years":[{"value":59,"label":"2014"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":39,"name":"Indian Polity","slug":"indian-polity","term_group":0,"term_taxonomy_id":39,"taxonomy":"post_tag","description":"","parent":0,"count":188,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=2263"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2263\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=2263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=2263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=2263"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=2263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}