Question

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

• A. Plan expenditure is for capital formation, and non-plan is for revenue generation.
• B. Plan expenditure is on specific schemes and projects, while non-plan is on routine expenses.
• C. Plan expenditure is directly managed by the state government, and non-plan is by the central government.
• D. Plan expenditure is allocated through the budget, while non-plan expenditure is outside the budgetary process.

Answer 1

Answer:

B. Plan expenditure is on specific schemes and projects, while non-plan is on routine expenses.

• Plan expenditure was for projects outlined in the Five-Year Plans (now replaced by NITI Aayog), while non-plan expenditure covered regular, ongoing expenses like salaries and subsidies.