What is non expenditure cost?
Definition: This is largely the revenue expenditure of the government, although it also includes capital expenditure. It covers all expenditure not included in the Plan Expenditure.
What is non expenditure?
Non-Plan expenditure is a generic term, which is used to cover all expenditure of Government not included in the Plan. It includes both developmental and non-developmental expenditure. Part of the expenditure is obligatory in nature e.g. interest payments, pensionary charges and statutory transfers to States.
What are the examples of non-plan expenditure?
Non-Plan Expenditure constitutes the biggest proportion of the of the government’s total expenditure. The biggest items of Non-Plan Expenditure are interest payments and debt servicing, defence expenditure and subsidies. For defence services, both revenue and capital expenditure are incurred.
What are 3 examples of expenditure?
Types of expenditures
- Capital expenditure. A company incurs a capital expenditure when it buys an asset that has a life of more than one year (non-current asset).
- Revenue expenditure. This type of expenditure refers to when a company spends money on a short-term benefit (less than one year).
- Deferred revenue.
Which is non cost item?
Non-cost items Non-cost items are those items which do not form part of cost of a product. Such items should not be considered while ascertaining cost of a product. These are items included in profit and loss A/c as per principles of Financial Accountancy but not related to product.
What is meant by non development expenditure?
(ii) Non Developmental Expenditure it refers, to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.
What is non productive expenditure?
For a single program, unproductive expenditure may be defined as the difference between the actual public spending on the program and the reduced spending that would yield the same social benefit with maximum cost-effectiveness.
What is difference between plan expenditure and non-plan expenditure?
Non-plan expenditure is what the government spends on the so-called non-productive areas and is mostly obligatory in nature. It includes salaries, subsidies, loans and interest. Plan expenditure, on the other hand, pertains to the money set aside for productive purposes like various projects of ministries.
Which of the following factors is not included in the non-plan expenditure?
Central assistance to states is not a part of non-plan expenditure on the revenue side.
What is the difference between cost and expenditure?
A cost refers to the amount given to acquire an asset. If an expenditure is made to acquire supplies, then the cost is the amount paid in cash to acquire those supplies – for example of 1200 dollars. However, the supplies could also be acquired on credit.
What is non cash expenditure?
March 28, 2019. Noncash expenses are those expenses that are recorded in the income statement but do not involve an actual cash transaction. A common example of noncash expense is depreciation.
Which of these following is a non cash expenditure?
Only Depreciation is a non cash expense as there is no cash outflow while charged depreciation in the books of accounts.
What is difference between development and non development expenditure?
Solution. The expenditure which results in the generation of employment, increase in production, price stability, etc. is known as a developmental expenditure. The expenditure which does not yield any direct productive impact on the country is called non-developmental expenditure.
Which expenditures are included in non development expenditure?
In govt budget every year defence expenditure is shown as non development expenditure. Public expenditure in India basically constitutes capital and revenue expenditure. These are included in central plan expenditure, central assistance and non-development expenditure.
What is productive and non-productive expenditure?
We classify productive government spending as the sum of expenditure on education, health, defence, housing, economic affairs and general public services expenditure, while non-productive expenditure consists of expenditure on public order and safety, recreation and social protection.
What is productive and unproductive expenses?
The expenditures are important for the development of an economy. There are two types of expenditures incurred by the Government – one is Productive and other one is unproductive. In general productive expenditures increase productive capacity in the economy and bring income to the government.