Q. What do you mean by Public Expenditure?

The central governments have the responsibility of implementing various developmental programmes and bring about economic and social change in the country. As a result, the expenditure of the central government has increased over years. The expenditure made by the central government can be broadly classified into two categories, they are:

i) Plan expenditure: The expenditure made on the various economic and social services, nation building activities and such other developmental activities is called plan expenditure. E.g. Economic Services, Social Services. Etc

ii) Non-plan Expenditure: It is a term used to cover al expenditures of the government not included in the plan. E.g. Defense, internal security, pensions, etc.