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The expenditure in plan head is planned like( salary,purchase, etc.) but in case of non-plan that is renomn planned expenditure (like administration expenditure,calamity,mischalaneous etc.)
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What is plan and non plan budget?
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. Plan expenditure forms a sizeable proportion of the total expenditure of the Central Government. The Demands for Grants of the various Ministries show the Plan expenditure under each head separately from the Non-Plan expenditure. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.
What is the definition of Plan and Non Plan 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. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
Distinction between Plan and non-Plan expenditure?
Plan expendirture includes the expenditure of government in the productive assets through centrally sponsored scheme and flagship scheme whereas Non-plan expenditure includes expenditure made by the government for routine normal activities of government e.g. expenditure on salaries, pensions, administrative expenses etc.,
What about planned and unplanned expenditure in indian economy?
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. Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments. Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.
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What is the relation between fiscal deficit and GDP?
Fiscal Deficit relates to Public Finance wherein the Revenues of the Government from Taxes Investments etc is lesser than the expenditure of the Government. This means that the Expenditures of the Government is more than the revenue the Government gets and it is called fiscal deficit which is met by borrowing from Public or printing currency to meet the Deficit while the GROSS DOMESTIC PRODUCT means the total of goods and services produced by the Country in a year. These goods when valued in money it becomes National Income GDP = C+I+G+(X-M) C stands for consumption by private and Government and Investments private Investments and Government Investments and X stands for exports and M for Imports. The Deficit will affect GDP and if there is more deficit then the GDP will rise as the Government migh t have involved in Plan Expenditures and if it is Non-Plan Expenditure then it will affect the GDP as this expenditure will not bring benefits to the Country.
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