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. Select the correct answer using the code given below.

1. Defence expenditure — Covered under Non-Plan Expenditure because routine defence spending was treated as non-plan in the old budget classification. Verdict: Correct.

2. Interest payments — These are classic Non-Plan Expenditure items since they are obligatory liabilities of the government. Verdict: Correct.

3. Salaries and pensions — Regular administrative expenses like salaries and pensions were included in Non-Plan Expenditure. Verdict: Correct.

4. Subsidies — Major subsidies (food, fertilizer, petroleum, etc.) were also booked under Non-Plan Expenditure. Verdict: Correct.

Hence, all four are covered under Non-Plan Expenditure.