Public Expenditure Flashcards
What is public expenditure?
Public expenditure consists of expenditure on policies and arrangements of newer facilities by the Govt. at a higher rate than that of the GDP.
What is development expenditure?
Development expenditure comprises of expenditure on social and community services, economic services and grants - in - aid to States for development purposes. It constitutes the main target of the plan. It enables planners to specify a measurable level of achievement that the economy may attain within the planning period.
What is non development expenditure?
Non development expenditure comprises expenditure incurred on items like defence, collection of taxes and duties, administrative services, interest on debt and other services, stationery and printing and other expenditure on general services. It does not help directly in economic growth but it affect growth indirectly.
What is revenue expenditure?
Revenue expenditure refers to the recurring and maintenance expenditure incurred by the Government for running of Government departments and conducting various economic, social and general services, interest payments, subsidies, grants and assistance to State and Union territories, etc. Expenditure which does not result in creation of new assets.
What is capital expenditure?
Capital expenditure refers to the expenditure incurred on the acquisition of assets like land, buildings, machinery, equipment etc., expenditure on economic development, also loans and advances granted by the Central Government to the State and Union territories, PSEs, etc. At least a major portion of the expenditure is made at one time and benefits are realized at different points of time.
What is plan expenditure?
Plan expenditure consists of both revenue and capital expenditure of the Centre on the Central Plan and Central Assistance to the State and Union Territories. Plan expenditure reflects the Government’s investment in enhancing the economy’s productive aptitude.
What is non plan expenditure?
Non plan expenditure includes expenses that do not form a part of the Government’s FYP. These expenses include capital and revenue expenditure on defence, subsidies, interest payments, postal deficit, pensions, policies, loans to PSEs, economic services and loans as well as grants to State and Union territories and foreign Govts.
What are the reasons for the increase in public expenditure?
- Interest burden.
- Rising subsidies.
- Defence expenditure.
- Growth of national income.
- Growth of population.
- Urbanisation.
- Government administration.
