What is meant by government budget? Distinguish between plan and non-plan expenditures of government.
Answers
Plan Expenditures
components relate to items dealing with long-term socio-economic goals as determined by the ongoing plan process.
they are usually routed through central ministries to state governments for achieving certain desired objectives.
In some cases, the state governments also contribute their own funds to the schemes
Non plan expenditure
Interest payments on the loans taken by Government of India
Expenditure incurred on Defence Services (except Defence Equipment which is a capital expenditure)
Subsidies
Pensions, Social services such as healthcare, education, social security etc.
Police
Economic services by the government such as Agriculture, Industry, Power, Science & Technology
Grants to foreign Governments
Defence Equipments and modernization
Loans to Public sector companies
Loans to states and union territories