The practice of classifying expenditure budget as Plan and Non-Plan in the Budget documents was introduced from the First Five Year Plan in 1951, with the Planning Commission deciding the estimates of plan allocation. Taking Sarva Siksha Abhiyan as an example, expenditure on teachers’ salary constituted Plan Revenue Expenditure, and that on construction of school buildings was Plan Capital Expenditure. Non-Plan expenditure has referred to outlays on routine functioning of the government. In important development sectors, more than two-third of total public spending has come from Non-Plan budget. This classification had given rise to a misleading notion that Plan expenditure was developmental and Non Plan was non-developmental.

Source: dna February 01, 2017 02:44 UTC