Question Bank - Accountancy

Here's the question bank on all the accountancy topics.

Expenditure for public administration falls under

A.
Plan expenditure
B.
Non-plan expenditure
C.
Profitable expenditure
D.
None of the above

Solution:

The correct answer is Non-plan expenditure. The plan and non-plan expenditure was a major exercise in India during the planning era. Government of India has now scrapped that system in budget exercise and their place has been now taken by capital and revenue spending classifications. Earlier, all expenditures which were done in the name of planning were called plan expenditures. While all other expenditures were placed under non-plan expenditures. Additional InformationImportant non-plan revenue expenditures included the following:Interest payments on the loans taken by the Government of IndiaExpenditure incurred on Defence Services (except Defence Equipment which is a capital expenditure)SubsidiesGrants to the states and UTs, including those from calamity fundPensions, Social services such as healthcare, education, social security etc. PoliceEconomic services by the government such as Agriculture, Industry, Power, Science & TechnologyGrants to Foreign GovernmentsNon-Plan Capital Expenditure included the following:Defence Equipment and modernizationLoans to Public sector companiesLoans to states and union territories.

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