Q140
Indian EconomyPublic Finance, Budget & Taxation
Expenditure for public administration falls under
- a.Plan expenditure
- b.Non-plan expenditure
- c.Profitable expenditure
- d.None of the above
Answer: (B) Non-plan expenditure
Under the old classification, plan expenditure was spending on schemes of the Five Year Plans, while non-plan expenditure covered routine items such as public administration, defence, interest payments, subsidies and pensions. The plan/non-plan distinction was removed from the Union Budget of 2017-18, after the end of the Twelfth Plan, and expenditure is now shown only as revenue and capital expenditure.