inance Ministry Defines Capital and Revenue pendings

To bring more transparency in its allocations in the Union Budget subsequent to the scrapping of Plan and non-Plan expenditure, the Finance Ministry has defined capital and revenue vend ing s.

The definition, which is proposed in the draft general financial rules, comes after the government's decision to remove the artificial distinction of Plan and Non-Plan spending from 2017-18 and replaced it with revenue and capital expenditure.

The draft rules also proposes that in case of natural calamities or disaster, the expenditure would also depend on the nature of construction.

Expenditure on a temporary asset cannot ordinarily be considered as a capital expenditure, except in cases specifically authorised by the President of India, said the rules.

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