UPSC CIVIL SERVICES PRELIMINARY EXAMINATION

UPSC Prelims 2014— Question 20

2014General Studies Paper-IEconomyPublic Financemoderate
Q20

Question

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

Options

A
1 only
B
2 and 3 only
C
1, 2, 3 and 4✓ Correct Answer
D
None
AnswerOption C

Explanation

Correct answer: Option C. Under the expenditure classification used in the Union Budget at that time, defence expenditure, interest payments, salaries and pensions, and subsidies were included within non-plan expenditure. The question therefore requires recognizing that all four listed items were treated as non-plan expenditure in the relevant budget framework. Option A: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “1 only” Option B: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “2 and 3 only” Option C: Correct. This option is consistent with the governing fact or the valid combination identified in the question. The option reads: “1, 2, 3 and 4” Option D: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “None” The key Prelims lesson is to test each proposition independently before selecting the combination. Where the question uses words such as 'only', 'all', 'none', 'always' or a precise institutional/geographical association, a single inaccurate component is sufficient to eliminate the option. The answer recorded here follows the official answer key for the question-paper series represented by the uploaded source and has been cross-checked against an independent published key. The explanation is intended for conceptual revision rather than as a reproduction of any third-party solution.

Question Classification

SubjectEconomy
TopicPublic Finance
SubtopicTerminal topic
Question TypeConceptual MCQ
Difficultymoderate
VerificationVerified