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WHAT IS PLAN EXPENDITURE


The government's expenditure can be divided into two parts — plan and non-plan. Plan expenditure is that component of government expenses which helps increase the productive capacity in the economy. It includes outlays for different sectors, such as rural development and education.
 
Unlike non-plan expenditure, which is mostly fixed and obligatory in nature, plan expenditure is part of Budget estimates determined after discussions with the ministries and stakeholders concerned.

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