Public expenditure classification in India: Which of the following items are included in as used in public finance accounts? Consider these heads separately. A) Interest payments B) Subsidies C) Defence expenditure D) Irrigation outlays Choose the correct combination.

Given data

• We must classify items as non-development (non-plan) vs development expenditure.

Concept / ApproachNon-development expenditure covers committed/maintenance heads such as interest, defence, pensions, and subsidies; development expenditure finances sectoral development like irrigation, power, transport, etc.

ReasoningInterest (A), subsidies (B), and defence (C) are classic non-development heads; irrigation (D) is a development outlay.

Final AnswerA, B and C only.