Which of the following component is not part of non-planned expenditure?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Central assistance to States.
Budget documents divide government expenditure into plan and non-plan expenditure. Plan expenditure relates to the central Plans (the Five Year Plans) and to the central assistance for State and Union Territory plans. The Centre’s help for the plans of the States and Union Territories is therefore plan expenditure, the one item here that is not part of non-plan expenditure.
Non-plan expenditure covers the general, economic and social services of the government; its main items are interest payments, defence services, subsidies, salaries and pensions.
What the other options are
Option (1) Interest payments. — Non-plan expenditure (Incorrect). Interest on market loans, external loans and reserve funds is the single largest item of non-plan revenue expenditure.
Option (3) Salaries and pensions. — Non-plan expenditure (Incorrect). The pay and pensions of government employees are one of the main items of non-plan expenditure; they have to be met every year whatever the plan.
Option (4) Defence services. — Non-plan expenditure (Incorrect). Defence is committed expenditure: given the needs of national security there is little scope for cutting it, and it is a main item of non-plan expenditure.
Note: A same/similar question was asked in CUET (UG) in the papers below.
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 21-05 S1* 31-05 S1 | – | – | – | – |
* A similar question.
NCERT (2025-26): “Revenue Expenditure … Budget documents classify total expenditure into plan and non-plan expenditure 3. This is shown in item 6 on Table 5.1 within revenue expenditure, a distinction is made between plan and non-plan. According to this classification, plan revenue expenditure relates to central Plans (the Five-Year Plans) and central assistance for State and Union Territory plans. Non-plan expenditure, the more important component of revenue expenditure, covers a vast range of general, economic and social services of the government. The main items of non-plan expenditure are interest payments, defence services, subsidies, salaries and pensions.…” |