BANKING AFFAIRS

Detailed explanation-1: -Description: Plan Expenditure is aimed at bolstering the productive capacity of the economy. It includes expenditure on electricity generation, infrastructure, education, and other productive areas of our economy. Non-Tax Revenue is the recurring income earned by the government from sources other than taxes.

Detailed explanation-2: -These expenses are spread across defence, interest payments for debt, subsidies (especially for food and fertilisers) and salaries and pensions of employees in various government services. Was this answer helpful?

Detailed explanation-3: -Non-plan expenditure is what the government spends on the so-called non-productive areas and is mostly obligatory in nature. It includes salaries, subsidies, loans and interest. Plan expenditure, on the other hand, pertains to the money set aside for productive purposes like various projects of ministries.

Detailed explanation-4: -Revenue expenditures refer to the day-to-day expenditures incurred by the government to ensure its normal functioning. Hence, interest payments on the debt, defence purchases, and wage bill are all a part of the government’s revenue expenditure. Which of the expenditures given above is/are Non-Plan Revenue Expenditure?