explain the following terms.give two examples of each.1) plan and non- plan expenditure of government.2) development and non- development expenditure of government.
Answers
Plan Expenditure
Any expenditure that is incurred on programmes which are detailed under the current (Five Year) Plan of the centre or centre’s advances to state for their plans is called plan expenditure. Provision of such expenditure in the budget is called Plan Expenditure.
Non-Plan Expenditure
This refers to the estimated expenditure provided in the budget for spending during the year on routine functioning of the government. Non- Plan expenditure is all expenditure other than plan expenditure of the govt. Such expenditure is a must for every country, planning or no planning.
Developmental Expenditure
Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country.
Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account.
Non Developmental Expenditure
It refers to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure. Pension to retired govt. employees, non-developmental assistance to states are also included in this category.