IAS Economy Practice Question . 8
In context with the Centrally Sponsored Schemes in India, what is committed liability?
[A]The Budget allocation for the scheme for a financial year
[B]Total expenditure incurred in the first year of a five year plan
[C]Total expenditure incurred in the terminal year of the Five Year Plan
[D]Total expenditure incurred in any Financial year
Answer: Total expenditure incurred in the terminal year of the Five Year Plan
Total expenditure incurred under Centrally Sponsored Scheme in the terminal year of the Five Year Plan is the committed liability of the States/Uts for every year of the subsequent Five Year Plan. Please note that N.E. States are exempted from the concept of committed liability.
