31st October Newspaper Notes - Non Plan Expenditure Cut, Janani Shishu Suraksha Yojana, Kamalnathan Committee Recommendations

1. Union Govt. cuts non plan expenditure by 10% for the current fiscal period of 2014-15. Subsidies will be the major effected portion of the austerity cuts. This cut will not extend to –

(a) repayment of debt 

(b) interest payments 

(c) salaries and pensions 

(d) grants to states as divided to by the Finance Commission. 

Some important facts – 

(a) 10% cut in non plan expenditure with no parallel cuts in planned expenditure

(b) Secretaries of various ministries will look after the execution of the above austerity cuts and financial advisor would submit quarterly reports of the same. 

(c) Plan expenditure for 2014-15 Union Budget is Rs. 5. 75 lakh crores.

(d) Non plan expenditure for 2014-15 Union Budget is Rs. 12. 19 lakh crores.

(e) Target to achieve seven year low fiscal deficit of 4.1% and reduce fiscal deficit to 3% of GDP by 2016-17. 

(f) IN the austerity cuts five star hotel conferences, first class air travel. Purchase of cars and vehicles for Government services will be curbed. 

Important Note: What is the difference Plan and Non Plan Expenditure?

Heads covered under Non plan expenditure are – 

(1) Defence expenditure (2) Loans to public enterprises (3) Loans given to foreign states and to the Union territories and states of our country (4) Salary and wages given to Government servants (5) grants allotted by Finance Commission to the Union Territories and states (6) Subsidies (7) Services such as social and tax collection services.

Whereas plan expenditure is decided after intense consultation between the Planning Commission and the ministries. It is primarily planned for the implementation and execution of developmental schemes i.e. the expenditure of the Union Government in its 5 year plans and the money which is provided to the respective State or Union Territory for their 5 year plans.

2. Under the JSSY (Janani Shishu Suraksha Yojana) Rajasthan has announced free treatment for all new born babies till they complete one year of their life. 

3. Kamalnathan Committee recommendations on the distribution of State Govt. employees between Telangana and residuary Andhra Pradesh has been approved by the Prime Minister and the list is now available on State Reorganization Portal.