Budget 2022: The general budget is a statement of the estimates of receipts and expenditure of the government during the period of a financial year (from 1st April to 31st March). The budget has two main parts, income and expenditure. All receipts and revenues of the government are called income and all expenditure of the government is called expenditure.
Earlier in the budget, the expenditure of the government was divided into two categories. Plan expenditure and non-Plan expenditure, but in the year 2017, the government abolished this classification. The finance ministry decided to spend uniform money on government schemes. Therefore this classification was completely abolished.
why did it end
In the earlier budget, more emphasis was placed on the planned expenditure and the non-planned expenditure used for the maintenance and smooth running of the schemes was neglected. Because of this, the government abolished it and renamed it as Capital Spending and Revenue Spending.
What is plan expenditure
In the expenditure budget, the funds allocated by the central government to the states and union territories are accounted for along with the expenditure on the schemes of the central government. Like the budget, it can also be divided into revenue and capital. At the same time, plan expenditure is made jointly by several ministries of the government and NITI Aayog. It broadly includes all those expenses, which are incurred on the schemes run by different departments. In this, a fixed amount is allocated to the ministries and departments. It is the largest part of the amount spent by the government.
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Meaning of Non-Plan expenditure
Non-Plan Expenditure i.e. Non-Plan Expenditure has two parts. Non-Planned Revenue Expenditure and Non-Planned Capital Expenditure. Non-Plan revenue expenditure includes those expenses which are spent on paying interest on loans taken by the government, subsidizing people, giving salaries to government employees as well as grants to state governments, grants to foreign governments, etc. . Whereas, non-plan capital expenditure includes defence, loans to public enterprises, loans to states, union territories and foreign governments.
Know what is capital spending
Capital spending is that expenditure by the government, which generates profit for the future. Capital Spending is used to buy assets or equipment etc. It is also used for the upgradation of various equipment.
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what is revenue spending
At the same time, the amount spent from the revenue account of the government is called Revenue Expenditure. It includes the day-to-day expenditure of the government. Such as the salary of employees, electricity, water bills of ministries and departments, stationery, computer expenses etc. At the same time, the benefit given by a government to individuals or groups in the form of cash or exemption from tax is called subsidy.
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