With reference to Union Budget, which of the following is/are covered under Non-plan Expenditure 1. Defence expenditure 2. Interest payments 3. Salaries and pensions 4. Subsidies Select the correct answer using the code given below?

Option 3 : 1, 2, 3 and 4

The correct answer is 1, 2, 3, and 4.

• All expenditures which are done in the name of planning were called plan expenditures while the rest are placed under non-plan expenditures. 
• The government of India has now scrapped the plan and non-plan expenditures in budget exercise and are replaced by capital and revenue spending classifications. 

Non-plan expenditure is spread across:

• Expenditure incurred on Defence Services
• Interest payments for debt
• Subsidies (food, fertilisers, etc.)
• Salaries and pensions of employees in various government services 
• Economic services by the government such as Agriculture, Industry, Power, Science & Technology,
• Loans and grants
• Social services such as healthcare, education, social security
• Police, etc.