The Halwa ceremony, marking the last step in the budgeting process, was held in the North Block on Saturday afternoon in the presence of Minister of Finance and Union Affairs, Nirmala Sitharaman.

The budget for fiscal year 22 will come against the backdrop of an economic contraction of 7.7%, the first time in the history of independent India. Thus, all stakeholders have high expectations for the next budget, which could bring a healing touch to the economy affected by the pandemic and stimulate growth.

Even Finance Minister Nirmala Sitharaman last month pledged a “never before” Union-like budget to the Indian people.

This will be the first time since independence that physical copies of budget documents will not be shared with MPs to avoid the risk of COVID-19 infection, the sources said, adding that all MPs will receive electronic copies of the budget and economic survey.

The familiar sight of trucks loaded with budget documents in parliament on budget day and their scanning by the security guard will also be missed.

As the countdown to the 2021 Union budget has started with this Halwa ceremony, we have decided to help you understand the few terms of the budget glossary.

In this article, we’ll help you understand the difference between planned and unplanned spending. Although the government has removed the distinction between planned and unplanned spending in the budget, both terms need to be studied.

Out-of-plan expenses

Unplanned spending is what the government spends in so-called non-productive areas, such as salaries, grants, loans, and interest. Non-plan investment expenditure mainly includes defense, loans to public enterprises, loans to States, Union territories and foreign governments

Plan expenses

Plan spending is money to be set aside for productive purposes, such as various government ministry projects. They are estimated after discussions between each of the ministries concerned and the Planning Commission.

According to officials of the Ministry of Finance, the government decided to remove the distinction due to the abolition of the Planning Commission, the relevance of planned and unplanned spending has been lost.

(With contributions from agencies)

Posted on: Sunday January 24, 2021 13:37 IST