Non-Plan Expenditure

Non plan expenditure is a general term used to cover all expenditure of the government not included in the plan expenditure. Part of this expenditure is obligatory in nature, i.e. interest payments, pension & statutory transfer to states. Part of the expenditure is essential like defense, internal security, external affairs, currency etc.

The main items of non plan revenue expenditure is interest payments, defer expenditure, subsidies, general administration. In 2002-03, while interest payment took 47.8%, defense 17.8%, subsidies 16.3% and general administration took 16.2% of the total non plan revenue expenditure.

Non-plan capital expenditure includes loans to states and union territories, loans to foreign countries, loans to public enterprises etc.