Plan vs Non-Plan Expenditure — Prelims Strategy

Prelims Strategy

For Prelims, the strategic approach for tackling 'Plan vs Non-Plan Expenditure' involves a strong focus on factual accuracy and conceptual clarity. Key areas to master include the year of abolition (2017), the primary reasons for its removal (14th Finance Commission recommendations, dissolution of Planning Commission), and the new classification system (Capital vs Revenue expenditure).

Be prepared for questions that test examples of each type of expenditure, both historically and currently. Understand the core difference between capital and revenue expenditure. Pay attention to the roles of the Finance Commission (especially the 14th FC) and NITI Aayog in this transition.

Memorize key constitutional articles like 280 and 282, and the FRBM Act's year. Practice MCQs that involve identifying correct statements about the old and new systems, and those that require distinguishing between different types of expenditure.

Vyyuha advises creating flashcards for key dates, definitions, and the main drivers of change.