Government expenditure in India was historically classified into Plan and Non-Plan expenditure. Plan expenditure related to outlays for Five-Year Plans and central assistance for state and union territory plans. Non-Plan expenditure covered all other government spending, including essential services, salaries, pensions, interest payments, subsidies, defence, and the cost of running government departments and administration (public administration). This classification was discontinued from the Union Budget 2017-18, replaced by Revenue and Capital expenditure classification, but the concept is still relevant for understanding historical budgets and the nature of spending.
Expenditure for public administration falls under
Asked in WBPSC CS Prelims 2018 · Topic: Fiscal Policy & Revenue (Public Expenditure: Classification, trends, and impact on development)
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