Which of the following come under Non-plan expenditure? I. Subsidies II. Interest payments III. Defence expenditure IV. Maintenance expenditure for the infrastructure created in the previous plans Choose the correct answer using the codes given below: Codes:

The correct option is D because all four items listed were classified as Non plan expenditure under the traditional budgeting system used in India before the distinction between Plan and Non plan expenditure was abolished in 2017 18.

Non plan expenditure refers to the estimated expenditure of the government that is not part of the Five Year Plans. It primarily covers the recurring and obligatory costs required to maintain the status quo of the administration and existing assets.

1. Subsidies: These are recurring financial supports for food, fuel, and fertilizers, falling under regular revenue expenditure.
2. Interest payments: These are mandatory servicing costs for previous government borrowings and constitute the largest component of Non plan expenditure.
3. Defence expenditure: This includes the maintenance of the armed forces and equipment, which is treated as a sovereign necessity outside the scope of developmental planning.
4. Maintenance expenditure: While building new infrastructure is considered Plan expenditure, the money spent on maintaining assets created in previous plans is categorized as Non plan expenditure once the specific plan period ends.

Since all four categories represent these types of mandatory or recurring costs, they all come under Non plan expenditure.