1.

PLAN EXPENDITURE AND NON-PLAN EXPENDITURE:-

a. PLAN EXPENDITURE: - 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.
Alternatively “plan expenditure is that public expenditure which represents
current development and investment outlays (expenditure) that arise due to plan
proposals in the current.”
b. NON-PLAN EXPENDITURE: - Non-plan expenditure refers to the
estimated expenditure provided in the budget for spending during the year
on routine functioning of the government. In short, expenditure other than
plan expenditure related to current five year plan is treated as non-plan
expenditure.
PLAN EXPENDITURE AND NON-PLAN EXPENDITURE IS FURTHER
DIVIDED INTO TWO CATEGORIES:-
 REVENUE EXPENDITURE: - An expenditure which neither creates
assets nor reduces liability is called revenue expenditure.
 CAPITAL EXPENDITURE: - An expenditure which either creates an
asset or reduces liability is called capital expenditure.
 BUDGET EXPENDITURE

PLAN NON-PLAN
EXPENDITURE EXPENDITURE

REVENUE CAPITAL REVENUE

CAPITAL
EXPENDITURE EXPENDITURE EXPENDITURE EXPENDITURE
 CENTRAL  CENTRAL  INTEREST  DEFENCE
PLANS PLANS CAPITAL PAYMENT (ON CAPITAL
 ASSISTANCE PROJECTS LOANS TAKEN BY  OTHER THAN
TO FINANCIAL  LOANS TO GOVERNMENT) DEFENCE
STATE AND STATE AND  PAYMENT OF CAPITAL
U.T. PLANS. UNION SLARIES  LOANS TO
TERRITORIES  DEFENCE STATES AND
FOR THEIR SERVICES UNION
CAPITAL EXPENDITURE TERRITORIES
PROJECTS.  SUBSIDIES  LOANS TO
 GRANTS TO PUBLIC
STATESAND  LOANS TO
UNION FOREIGN
TERRITORIES GOVERNMENT
 ECONOMIC
SERVICES
 EDUCATION AND
HEALTH
SERVICES
 FAMILY WELFARE
 FLOOD CONTROL
 RURAL
DEVELOPMENT