(1) Interest payments Explanation: 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 darns, roads etc. Interest Payments and Debt Servicing comprise more than 30 per cent of this expenditure.