Plan vs Non-Plan Expenditure — Current Affairs 2026
Current Affairs Connections
Union Budget 2024-25 Continues Focus on Capital Expenditure for Growth
February 1, 2024The Union Budget 2024-25, presented by the Finance Minister, continues to prioritize capital expenditure as a key driver for economic growth and job creation. The budget outlines substantial allocations for infrastructure projects, green energy initiatives, and digital public infrastructure, all falling under the 'Capital Expenditure' classification. This sustained focus underscores the government's commitment to long-term asset creation and productive investments, a direct consequence of the shift away from the Plan/Non-Plan dichotomy. From a UPSC perspective, this demonstrates the practical application of the new budgetary framework, where the economic nature of spending (asset creation) takes precedence over its linkage to a central plan. Aspirants should analyze the trend of increasing capital outlay and its projected impact on GDP and employment.
UPSC Angle: Analyze the trend of capital expenditure growth in recent budgets, its multiplier effect on the economy, and its alignment with India's long-term development goals. Discuss how this contrasts with the historical Plan expenditure approach.
NITI Aayog's Vision Document 2047 Emphasizes Outcome-Based Public Spending
January 2024NITI Aayog's recently released 'Vision India @2047' document lays significant emphasis on enhancing the efficiency and effectiveness of public spending through outcome-based budgeting and performance monitoring. The document outlines strategies for linking budgetary allocations to measurable targets and impact assessments across various sectors, moving beyond mere input-based spending. This policy thrust is a direct evolution from the abolition of Plan/Non-Plan expenditure, which was criticized for its input-centric approach. NITI Aayog, as the successor to the Planning Commission, is actively shaping the new paradigm of governance where resource allocation is driven by results and accountability. For UPSC aspirants, this highlights the ongoing administrative reforms and the shift towards a more transparent and performance-oriented public financial management system.
UPSC Angle: Examine how NITI Aayog's policy recommendations align with the post-2017 budget reforms. Discuss the challenges and opportunities in implementing a robust outcome-based budgeting framework across all government departments.