Budget 2021

Non-Plan Expenditure

Government mulling abolishing plan, non-plan expenditure: Watal

India Inc capital expenditure to remain muted this financial year

cashier counts rupee notes inside a bank in Mumbai

Union Finance Minister Arun Jaitley with Union Railway Minister Suresh Prabhu leaves after addressing the media regarding the cabinet meeting in New Delhi

Data

Infrastructure

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	The government&#39;s total spending can be divided into two broad sub-heads &mdash; plan and non-plan &mdash; with the latter constituting the bulk of expenditure.</div>
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	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.</div>
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	Plan expenditure, on the other hand, pertains to the money set aside for productive purposes like various projects of ministries. It is spent on productive asset creation through Centrally-sponsored programmes and flagship schemes.</div>

RELATED BUDGET TERMS

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What is Non-Plan Expenditure, News, Budget 2020 News, Non-Plan Expenditure Definition

What is Non-Plan Expenditure

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		The Expenditure Budget of the government highlights the allotment of funds for disbursement to different ministries, sectors, departments in a financial year as part of the Union Budget. The allotments are made under Plan and non-Plan estimates for departments and ministries concerned.&nbsp;</div>
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		The government prepares the expenditure portfolio in three different documents:&nbsp;</div>
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		<strong>1. Expenditure profile:</strong> The expenditure profile compiles relevant data across all ministries and departments to sketch a profile of the general financial performance of the government. It is one of the explanatory documents that aid economic analyses. The statements contained in this document are prepared on the basis of data given by ministries. Some of the statements are based on the data contained in the Expenditure Budget. It includes Budgetary trends on gender Budget, the welfare of women and children, resource allocation for the northeastern states and welfare of SC/STs.</div>
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		<strong>2. Demand for Grants:</strong> It is the document in which estimates of expenditure from the consolidated fund of India are submitted in pursuance of Article 113 of the Constitution. They are included in the annual financial statement and are required to be voted upon in the Lok Sabha. The demands for grants include both charged and voted expenditure. These are further classified as revenue and capital expenditure according to the nature of end-use.</div>
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		<strong>3. Expenditure Budget:</strong> As explained above, the Expenditure Budget contains details and estimates of the amount to be allocated to different ministries and departments for their proper functioning in a given financial year.&nbsp;</div>
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		<strong>What are the parts of Expenditure Budget?</strong></div>
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		The Expenditure Budget is further divided into capital expenditure and revenue expenditure.&nbsp;</div>
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	<strong>Capital Expenditure:</strong> This expenditure pertains to amount spent on the creation of assets and is a cause for a reduction in liabilities for the government. It is non-recurring in nature and adds to the capital stock of the economy, increasing its productivity through long-term developmental programmes and welfare schemes &mdash; for instance, construction of metro rail networks, highways, ports, etc. It also includes the loans given to Union Territories and states, and repayment of borrowings.&nbsp;</div>
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	<strong>Revenue Expenditure:</strong> This section details of expenditure that neither creates assets nor causes a reduction in liability for the government. It is recurring in nature and is incurred on the normal functioning of the government. The allocations under Revenue Expenditure include payment of salaries, pension, interests, expenditure on administration, defence, health, and other services in the country.</div>

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What is Expenditure Budget, Expenditure Budget Meaning, Expenditure Budget Definition

Expenditure Budget

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	Expenditure profile is a full compilation of information from all ministries and departments to analyse the Union government&rsquo;s financial performance. It documents budgetary trends on important policy issues, such as gender budget, welfare of women, resource allocation for the northeastern states and many other important issues. It also contains consolidated information about government schemes, such as centrally-sponsored schemes, subsidies, and investment in public-sector undertakings (PSUs).</div>
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	Since the merger of the Railway Budget with the Union Budget in 2017-18, the information in the expenditure profile also includes a detailed analysis of the Ministry of Railways. The statements contained in this document are prepared on the basis of inputs given by ministries and departments. Some of the statements are based on the data contained in the Expenditure Budget.</div>
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	The Expenditure profile provides a summary of expenditure of the Union government which includes actual revenues and capital spent in the previous financial year and the budgeted and revised estimates for the current financial year, besides estimates for the upcoming financial year.</div>
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	The document also provides a statement of major variations in expenditure between Budgeted Estimates and Revised Estimates of the ongoing financial year. It details the expenditure of ministries and departments, transfers to Union Territories and legislature. Expenditure profile also lists in detail the spending on subsidies &mdash; food, fertiliser and other important ones.</div>
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	The five parts of the expenditure profile also include information about spending on external sectors, such as externally aided projects and loans to foreign governments. The final part is the detailed statement of analysis on railways with an overview of receipts and expenditure.</div>
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Non-Plan Expenditure

What is Non-Plan Expenditure

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