Plan vs Non-Plan Expenditure — Policy Reforms

Entry	Year	Description	Impact
Fiscal Responsibility and Budget Management (FRBM) Act	2003	While not a constitutional amendment, the FRBM Act was a landmark legislative measure aimed at institutionalizing fiscal discipline. It mandated targets for fiscal deficit, revenue deficit, and public debt, requiring greater transparency and accountability in government finances. It influenced the overall framework of expenditure management, pushing for more productive use of resources.	The FRBM Act created a legal framework for fiscal prudence, indirectly influencing the need for more rational expenditure classification and management. It laid the groundwork for future reforms aimed at improving the quality of public spending.
Abolition of Plan/Non-Plan Classification	2017	This was a major administrative and budgetary reform, not a constitutional amendment. The Union Budget 2017-18 formally abolished the Plan and Non-Plan expenditure classification, replacing it with the Capital and Revenue expenditure distinction. This followed the dissolution of the Planning Commission and the recommendations of the 14th Finance Commission.	This reform fundamentally changed how government expenditure is categorized and analyzed. It enhanced fiscal transparency, promoted outcome-based budgeting, and strengthened fiscal federalism by giving states greater autonomy in resource allocation, moving away from a centrally planned model.