Plan and Non Plan Expenditure

Concept: Plan and Non Plan Expenditure

Topic: Finance

Category: Governance

Related News: Hindu, June 29

CNA mentions: 1(June 29)

Plan and Non Plan Expenditure  

Plan expenditure, also known as  development expenditure, is used on government programmes and flagship schemes, whereas non-Plan expenditure involves spending on defence, subsidies and transfer to states and the large share of government spending comes from none other than non-Plan expenditure. The Plan expenditure allocation estimates are determined by the Planning Commission whereas in the case of non-Plan expenditure, the finance ministry determines them without consultation with the Commission.

In other words,the public expenditure that represents current investment and development outlays which arise due to current plan proposals.There are several items included in plan expenditure like construction of bridges,canals,roads,etc,electricity generation expenditure,rural developments and irrigation expenditure,expenditure on environment,science and technology,etc.

All the expenditure other than the plan expenditure of the government comes under non plan expenditure.

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