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Monday, September 7, 2009

Finance Ministry cuts Non-Plan Expenditure of Ministries by 10 %

Indian Finance Ministry cuts the Non-Plan Expenditure of Ministries by 10 per cent, according to media reports. Indian Ministries are reportedly told to cut their domestic and foreign travel expenditure.

This could be a measure by the Government of India to keep tab on the non-plan expenditure of various ministries. The non-plan expenditure is one of the major factor that determines the budget estimation and actual expenditure. It is seen that the non - plan expenditure could rise if there no tab on these at all. However, major portion of a budget is also categories for non plan expenditure. The deficit of the budget can also be check if the non plan and planned expenditure made as per scheduled provisions.

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