Total Planned Expenditure of India

Total Planned Expenditure of India

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Every financial year stays from 1st April to 31st March in the following year. Every year the Central Government reveals the Total Planned Expenditure of the nation by placing the Union Budget. Economically speaking, this Total Planned expenditure accounts for the net investment of money at a particular item within a specified time interval, and it is manipulated by multiplying the total number of items purchased by the price of the individual item. And its value depends on the demand for the item in the market i.e. the elasticity of the demand for the item.

The Total Planned Expenditure is sub-categorized as Revenue Expenditure and Capital Expenditure of the Country. The revenue expenditure is defined to be those expenses that cover expenses only within a year. During the Union Budget, the revenue Budget is there which is further subdivided into revenue receipts and revenue expenditure. And the Revenue Expenditure is categorized as Planned and Non-Plan expenditure. The planned revenue expenditure is the expenses maintained by the different Ministry boards of the Central Government along with granting Central assistance to State and Union Territories.

The Planned Aggregate Expenditure is the expenditure maintained in business and household matters. It is Sub-Classified as Planned induced and Planned Autonomous Expenditure and the summation of these two expenditures provides the value of planned aggregate expenditure. Induced expenditure is calculated by the current income and it fluctuates with the income change. Whereas autonomous expenditure doesn't depend on the income of a Company instead it depends on the vast array of economic, financial, psychological, and external conditions for its determination. Both these Planned Induced and Planned Autonomous Expenditures cover the Gross Domestic Product (GDP) of the Country.

The Union Budget is an important financial document that outlines the government's revenue and expenditure plans for a specific fiscal year. It comprises two key components: plan expenditure and non-plan expenditure. Plan expenditure refers to the funds allocated for specific development schemes, programs, and projects aimed at achieving targeted goals and objectives. Non-plan expenditure, on the other hand, covers the day-to-day operational costs and obligations of the government and it is essential for the smooth functioning of government machinery. Thus, effective management of plan expenditures, union budget plan, and non plan expenditure play a vital role in achieving sustainable economic growth, promoting social welfare, and maintaining fiscal discipline.