Which of the following is the biggest head of non-plan expenditure of Government of India

Question: Which of the following is the biggest head of non-plan expenditure of Government of India ?
(1) Interest payments
(2) Subsidies
(3) Defence
(4) Salaries and Wages

Answer: (1) Interest payments
The central government expenditure itself is divided into two parts –plan expenditure and non-plan expenditure. Non Plan Expenditure is money that’s spent on sustaining the country like defense, postal
deficit, subsidies etc. and Plan Expenditure is the money that is spent on improving the country like the money spent on dams, roads etc. Interest Payments and Debt Servicing comprise more than 30 per cent of this expenditure.

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