Which of the following are among the non-plan expenditures of the Government of India? I. Defence expenditure II. Subsidies III. All expenditures linked with the previous plan periods IV. Interest payment Choose the correct answer from the codes given below: Codes:

The correct option is D because all four items listed were classified as non plan expenditures under the traditional accounting system of the Government of India.

Non plan expenditure refers to the outlays that are not part of the specific projects or schemes outlined in the Five Year Plans. It primarily covers the maintenance and routine functioning of the government.

First, defence expenditure is considered non plan because it relates to national security and administrative maintenance rather than developmental planning. Second, subsidies on food, fuel, and fertilizers are recurring administrative costs aimed at welfare and price stability. Third, expenditures linked with previous plan periods are classified as non plan because once a plan period ends, the ongoing maintenance of the assets created during that period becomes a liability on the regular budget. Finally, interest payments on internal and external loans are mandatory contractual obligations that do not fall under developmental plan projects.

Note that while the distinction between plan and non plan expenditure was abolished starting from the 2017 to 2018 budget in favor of capital and revenue classification, this historical classification remains a standard topic in economic studies.