Expenditure for public administration falls under

The correct answer is Non-plan expenditure.

Key Points

• The plan and non-plan expenditure was a major exercise in India during the planning era.
• Government of India has now scrapped that system in budget exercise and their place has been now taken by capital and revenue spending classifications.
• Earlier, all expenditures which were done in the name of planning were called plan expenditures.
• While all other expenditures were placed under non-plan expenditures.

Additional Information

• Important non-plan revenue expenditures included the following:

  • Interest payments on the loans taken by the Government of India
  • Expenditure incurred on Defence Services (except Defence Equipment which is a capital expenditure)
  • Subsidies
  • Grants to the states and UTs, including those from calamity fund
  • Pensions, Social services such as healthcare, education, social security etc.
  • Police
  • Economic services by the government such as Agriculture, Industry, Power, Science & Technology
  • Grants to Foreign Governments
  • Non-Plan Capital Expenditure included the following:
  • Defence Equipment and modernization
  • Loans to Public sector companies
  • Loans to states and union territories.