Question

What is the primary difference between plan and non-plan expenditure?

• A. Plan expenditure is for capital investment, non-plan is for revenue.
• B. Plan expenditure is for defense, non-plan is for social welfare.
• C. Plan expenditure is related to specific schemes and projects, while non-plan is for routine, recurring expenses.
• D. Plan expenditure is funded by taxes, non-plan expenditure is funded by borrowing.

Answer 1

Answer:

C. Plan expenditure is related to specific schemes and projects, while non-plan is for routine, recurring expenses.

• The "plan" and "non-plan" classification was used to distinguish spending on the country's five-year plans (plan expenditure) from routine government expenses like salaries and pensions (non-plan expenditure).

• While this classification is now being phased out in some countries, it was a key way to categorize spending.