Abolition of Plan & Non-plan Expenditure

An important reform in this year’s Budget is the abolition of Plan and Non-Plan distinction. The reform has been initiated in view of the policy decision to do away with the term “Plan” while making a distinction between socio-economic welfare programmes.

Plan & Non-plan Expenditure

The practice of classifying Expenditure Budget as Plan and Non-plan was introduced in the First Five Year Plan in 1951, with the Planning Commission deciding the estimates of Plan allocation.

Plan Expenditure

• Plan expenditure referred to the spending on programmes and schemes of the Government detailed under the prevailing Five Year Plan. It included as ....