SSC Economics Sample Paper NCERT Sample Paper-4

  • question_answer
    Consider the following statements:
    1. Presently, interest payments, defence, subsidies and general, economic and social services together form over 80% of the non-plan expenditure.
    2. Subsidies has now become the single largest item of non-plan expenditure. Which of the above statements is/are correct?

    A)  1 only 

    B)  2 only

    C)  Both 1 & 2      

    D)         neither 1 nor 2

    Correct Answer: A

    Solution :

    [a] A major part of the Non-Plan Expenditure is obligatory in nature, like interest payments, pensions, statutory transfers to States and Union Territories governments. Non-Plan Expenditure constitutes the biggest' proportion of the of the government's total expenditure. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies. For defence services, both revenue and capital expenditure are incurred.

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