Plan vs Non-Plan Expenditure — Mains Questions

Critically analyze the reasons behind the abolition of the Plan and Non-Plan expenditure classification in India. How has the new Capital vs Revenue classification improved public financial management?

The transition from Plan vs Non-Plan to Capital vs Revenue expenditure reflects a fundamental shift in India's economic governance. Elaborate on this statement, connecting it to the principles of cooperative federalism and outcome-based budgeting.

Discuss the impact of the 14th Finance Commission's recommendations on the evolution of government expenditure classification in India. How did these recommendations influence the move towards greater fiscal autonomy for states?