| Consider the following items of expenditures. Which of the following will come under the category of non-plan expenditure? |
| 1. Capital expenditure on defence. |
| 2. Revenue expenditure on defence. |
| 3. Programmes related to science and technology, environment and social services. |
| 4. Grants to states and union territories and grants to foreign governments. |
| Select the correct answer using the codes given below. |
A) Only 2
B) 1 and 3
C) 2 and 4
D) All of these
Correct Answer: C
Solution :
[c] Capital expenditure on defence is not a non-plan expenditure. It is a planned one for activities like R and D, DRDO etc. But, revenue expenditure of defence can't be planned. Examples like salary of defence officers etc. The grant states is a major non-plan expenditure and the programmes elated to social sector like MGNREGA, Lay, Bharat Nirman are plan expenditures, as they are included in Five Year Plans.
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