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Last Updated : Feb 25, 2016 10:03 AM IST | Source: CNBC-TV18

Excl: Budget 2016 document likely to get a new look this year

The Union Budget 2016 is likely to see a number of changes to the way it approaches the method of putting out estimates of expenditure.


The Union Budget 2016 is likely to see a number of changes to the way it approaches the method of putting out estimates of expenditure.


Sources say the Committee of Estimates headed by Lok Sabha MP Murli Manohar Joshi has recommended to Finance Minister Arun Jaitley that he tweak the way a distinction is made between plan and non-plan expenditure.


Plan expenditure is expenditure allocated to various schemes through different ministries and is generally considered as more growth-oriented while non-plan expenditure is one that the undertakes in order to keep the house running: defence spending, interest payments, subsidies and salaries etc.

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Critics have in the past said the government should do away with the distinction, saying it is a Soviet-era relic of central planning.


It is, however, not clear whether the Finance Minister will do away with plan versus non plan distinction -- though sources say some rationalization will be carried out.


Further, the Budget will see a split in Volume 2 of the Expenditure Budget, with deals with ministry-wise fund allocations.

The Finance Ministry will also merge 10 demand for grants into heads that are related to specific ministries: for instance, demand for grants for the Army, Navy and IAF may be merged.

First Published on Feb 24, 2016 07:45 pm
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