Budget may drop plan, non-plan classification of expenditure

Date: December 09, 2015

plan & non plan expenditure finance commission

The Centre is looking to do away with the practice of classifying expenditure as ‘plan and non-plan’ in the Budget documents as part of an effort to improve the link between spending and outcomes, Union Finance Secretary Ratan P. Watal said on Tuesday. The distinction, in the budget due to be presented in February 2016, he indicated, could be between ‘capital and revenue’ spending—a proposal first mooted in 2011 by Dr. C. Rangarajan, the Chairman of the Economic Advisory Council to then Prime Minister Dr. Manmohan Singh.

 

for more visit http://www.thehindu.com/business/Economy/budget-may-drop-plan-nonplan-classification-of-expenditure/article7962577.ece

useful part for Civil Services-

What is Plan and non-plan expenditure?

What is role of Finance commission & planning commission/NITI ayog w.r.t. bothpan and non plan expenditure?