New Delhi: Budget 2022: The budget is the accounting of the country’s income and expenditure for a year by the government. Its period is from 1st April to 31st March. Therefore, while writing it, the budget 2022-23 (two years together) is written. There are mainly two parts of the budget, 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 abolished entirely.
In the earlier budget, more emphasis was on Planned expenditure and the non-Plan expenditure used for the maintenance and running of the schemes was neglected. Because of this, the government abolished it and renamed it 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 i.e. 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. This is the largest part of the amount spent by the government.
What is 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 giving interest on loans taken by the government, subsidizing people, giving salary to government employees as well as grants to state governments, grants to foreign governments, etc. . Whereas, non-plan capital expenditure includes defense, loans to public enterprises, loans to states, union territories and foreign governments.
Capital Spending and Revenue Spending
Capital spending is that expenditure by the government, which creates profit for the future. Capital Spending is used to buy assets or equipment etc. It is also used for the up-gradation of various equipment.
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. Like 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 a subsidy.