WHAT IS NON-PLAN EXPENDITURE
Non-Plan Expenditure
The government's total spending can be divided into two broad sub-heads — plan and non-plan — with the latter constituting the bulk of expenditure.
Non-plan expenditure is what the government spends on the so-called non-productive areas and is mostly obligatory in nature. It includes salaries, subsidies, loans and interest.
Plan expenditure, on the other hand, pertains to the money set aside for productive purposes like various projects of ministries. It is spent on productive asset creation through Centrally-sponsored programmes and flagship schemes.
RELATED BUDGET TERMS
NON-PLAN EXPENDITURE NEWS
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Budget Byte: Post-pandemic Budget has less room for targeted spending
Efficacy of fiscal deficit is limited by revenue deficit - the lower the latter, the bigger the space for capex| January 28, 2021, Thursday -
Infra spotlight: Little help from govt rejig of plan, non-plan expenditure
Despite wanting to, the government has managed to spend very little on capital account| February 02, 2017, Thursday -
Govt to scrap distinction between plan & non-plan expenditures in Budget
It would increase the focus on reducing the revenue deficit and enhancing capital spending, setting the stage for improvement in ...| September 21, 2016, Wednesday -
Fiscal deficit zooms to 61% of BE in Apr-Jun qtr
The government estimates fiscal deficit in 2016-17 to be Rs 5.33 lakh crore or 3.5% of GDP| July 29, 2016, Friday -
Ministers, depts can clear bigger non-Plan projects
Ministries, depts can appraise non-Plan projects of less than Rs 300 cr, against earlier limit of Rs 75 cr| June 29, 2016, Wednesday -
Framework for abolition of Plan, non-Plan classification soon
Centre likely to switch to a more globally relevant system of classifying spending as revenue expenditure and capital expenditure| May 18, 2016, Wednesday -
Govt to abolish Plan, non-Plan expenditure classifications
The move will link government spending to its eventual outcome more effectively| December 08, 2015, Tuesday -
Govt mulls abolishing plan, non-plan expenditure: Watal
Union Finance Secretary Ratan Watal said the classification is losing its significance.| December 08, 2015, Tuesday
