What is Plan expenditure and Non-Plan expenditure?

Categories: Budget Special NITI Aayog

    In the expenditure budget, the funds allocated by the central government to the states and union territories are accounted for along with the expenditure on the schemes of the central government. Like the budget, it can also be divided into revenue and capital. At the same time, plan expenditure is made jointly by several ministries of the government and NITI Aayog. It broadly includes all those expenses, which are incurred on the schemes run by different departments. In this, a fixed amount is allocated to the ministries and departments. This is the largest part of the amount spent by the government.

     Non-Plan expenditure i.e. Non-Plan expenditure has two parts. Non-Planned Revenue Expenditure and Non-Planned Capital Expenditure. Non-Plan revenue expenditure includes those expenses which are spent on giving interest on loans taken by the government, subsidizing people, giving salary to government employees as well as grants to state governments, grants to foreign governments, etc. . Whereas, non-plan capital expenditure includes defence, loans to public enterprises, loans to states, union territories and foreign governments.