What are plan expenditures?

Plan expenditure pertains to the money to be set aside for productive purposes, like various projects of ministries. They are estimated after discussions between each of the ministries concerned and the Planning Commission.

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 plan and Non-plan expenditure Upsc?

Plan Expenditure: All expenditures done in the name of planning (i.e. Five Year Plans) were called plan expenditures. Non-plan Expenditure: All expenditures other than plan expenditure were known as non-plan expenditure.

What is non budget expenditure?

Off-budget financing refers to expenditure that’s not funded through the budget. For instance, the government may set up a special purpose vehicle (SPV) to borrow money for a particular task such as to construct a bridge. Since the loan is not taken directly by the govt, it does not reflect in the budget document.

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.

What is expenditure with example?

The definition of an expenditure is the act of spending money or time and it is something on which you spend money. An example of an expenditure is the money spent on office equipment that you have purchased. The expenditure of time, money, and political capital on this project has been excessive.

What is the difference between plan and non-plan?

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 plan expenditure Class 12?

Plan Expenditure refers to the estimated expenditure which is provided in the budget to be incurred during the year on implementing various projects and programmes included in the plan. Provision of such expenditure in the budget is called Plan Expenditure.

What is difference between capital expenditure and revenue expenditure?

Capital expenditure is the money spent by a firm to acquire assets or to improve the quality of existing ones. Revenue expenditure is the money spent by business entities to maintain their everyday operations.

What is Plan capital expenditure?

Capital expenditure planning includes the people and procedures a business relies on to evaluate long-term needs and assess long-term business requirements. For example, upgrading an IT infrastructure typically must be planned in a series of stages that in total span a period of months or years.

What is the main difference between development and non development expenditure?

The expenditure which results in the generation of employment, increase in production, price stability, etc. is known as a developmental expenditure. The expenditure which does not yield any direct productive impact on the country is called non-developmental expenditure. It is productive in nature.

What is plan and Non Plan Expenditure in India?

Plan and Non Plan Expenditure The Government of India had announced in 2016, that the classification of plan expenditure and non-plan expenditure will be abolished. The plan and non-plan classification was removed from 2017-18. Henceforth the expenditures of the Government will be reclassified as Capital and Revenue spending.

What is non-plan capital expenditure?

Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments. What are direct taxes? What are indirect taxes?

What is meant by Plan Expenditure?

Plan expenditure are those expenditure which are mentioned in the 5 year plan prepared by the government.

What are the two components of expenditure?

There are two components of expenditure – plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.