Q. With regard to Indian Economy, what do you understand by the term ‘Non-discretionary spending’?

[A] The payment in terms of indirect taxes in a year.

[B] The expenses made on luxury items by a consumer.

[C] The expenses incurred on essential goods such as food by the consumer.

[D] The reduced value for money due to increasing inflation.

Answer: C
Notes:

Non-discretionary spending is essential and non-negotiable spending defined within a budget. Examples of these expenses include: rent, food, or mortgage payments. While the discretionary spending refers to non-essential expenses, such as hobbies and travel. For example, going to a movie or buying an expensive gift for a friend is considered discretionary spending.

Source: Indian Express

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