What is non-plan expenditure in budget?

What is non-plan expenditure in budget?

Non-plan expenditure is what the government spends on the so-called non-productive areas, such as salaries, subsidies, loans and interest. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.

What are the examples of non-plan expenditure?

The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies. For defence services, both revenue and capital expenditure are incurred.

What is planned expenditure in budget?

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.

Which is not a part of planned expenditure?

Detailed Solution. Electrification is not a part of the non-plan expenditure of central government. Non-plan expenditure is the revenue expenditure of the government which also includes capital expenditure. It covers all those expenditures which are not included in the plan expenditure.

What is planned expenditure and non planned 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.

What is the difference between planned expenditure and non planned expenditure?

Non-plan expenditure is what the government spends on the so-called non-productive areas, such as salaries, subsidies, loans and interest, while plan expenditure pertains to the money to be set aside for productive purposes, like various projects of ministries.

What is difference between plan and non-plan budget?

What is non development expenditure?

(ii) Non Developmental Expenditure. It refers to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.

Which of the following is non development expenditure?

it refers, to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.

What is developmental and non developmental expenditure?

Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account. (ii) Non Developmental Expenditure. It refers to those expenditure of the government which does not directly help in economic development of the country.

Is an example of non transfer expenditure?

Expenditure on armaments,education,post and telegraph,agricultural development and railways are some important examples of non-transferable expenditures. Government expenditure on education,health care ,fair,price shops, etc. benefits most to the poor than rich.

What is non-plan budget class 12?

Non-plan expenditure is all expenditure other than plan expenditure. Such an expenditure is a must for every country, planning or no planning. For instance, no government can escape from its basic function of protecting the lives and properties of the people and protecting the country from foreign invasions.

What is the difference between Plan Expenditure and Non-Plan 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.

Why was plan and Non-Plan Expenditure abolished in India?

The main reason behind the abolishing Plan and Non-Plan expenditure by the Government of India was the C Rangarajan Committee report of 2011. The new classification will assist the Government to create a proper link between Government spendings, earnings, and outcomes.

What is a 5 Year Plan Expenditure?

Plan expenditure is that expenditure which is incurred in a 5-year plan and by definition is developmental and productive expenditure (as a 5-year plan itself comprises programs and projects to be completed during the course of the plan).

How are the plan expenditures of the government estimated?

Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.

https://www.youtube.com/watch?v=bvrZePRYfEQ