Delhi Government decides to do away with Plan & Non-Plan expenditure classification in Budget

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New Delhi | Published: January 13, 2017 11:34:40 PM

Delhi government today decided to do away with the Plan and Non-Plan expenditure classification and replace them with 'Capital and Revenue' in the 2017-18 budget which is expected to be tabled in the Assembly in the first week of March this year.

Delhi government today decided to do away with the Plan and Non-Plan expenditure classification and replace them with 'Capital and Revenue' in the 2017-18 budget which is expected to be tabled in the Assembly in the first week of March this year. (PTI)Delhi government today decided to do away with the Plan and Non-Plan expenditure classification and replace them with ‘Capital and Revenue’ in the 2017-18 budget which is expected to be tabled in the Assembly in the first week of March this year. (PTI)

Delhi government today decided to do away with the Plan and Non-Plan expenditure classification and replace them with ‘Capital and Revenue’ in the 2017-18 budget which is expected to be tabled in the Assembly in the first week of March this year. This comes in line with the budgetary reforms being introduced by the Centre of the Union Budget. Announcing the decision on Twitter, Deputy Chief Minister Manish Sisodia said Delhi government would replace Non-plan and Plan budget segments with Capital and Revenue expenditure.

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“Delhi govt’s next budget would be only in Capital and Revenue allocations. There would be no Plan, Non-plan budget segments,” Sisodia tweeted.
The decision was taken at a joint meeting with officials of the Finance, Planning and Statistics departments, chaired by the Deputy CM, to prepare this systematic reforms. A senior government official said that the new budgeting practice will help in better utilisation of funds in the national capital.”Instead of five-yearly plan, we will only focus on long-term vision document, a move that is intended at output, outcome and long-term goals,” the official also said.

In the existing system, it was often seen that although money for any new asset was given under the plan head, budget for its maintenance is often under the non-plan head. “In the new financial year, budget will be divided into two heads – Capital and Revenue expenditure. “As per the rules, revenue expenditure are given only for meeting recurring expenses like salary payment of employees, pension disbursal while Capital expenditure is meant for infrastructure and asset creation,” official added.

Apart from this, government has directed Planning, Statistics and Finance departments to develop constant evaluation and monitoring mechanism for all the department functions. “Officials of these departments will not be given any other assignment in future so that they can focus on output, outcome and long-term goals,” official further said.

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