Resource detail

The 11th Plan document raised several conceptual issues arising out of the present structure of plan financing. The classification of expenditure has an important bearing on the overall expenditure management. The distinction of expenditure into Plan and Non-Plan categories has significant implications for efficient management of public expenditure. The revenue and capital categorization also requires a fresh look in the post-FRBM scenario in view of the need fosubstantial resource transfers to States and local bodies. The transfer of Central resources to States through various types of schemes and multiple modes of transfer have posed problems in obtaining a comprehensive overview of transfers to States as well as in effective monitoring of expenditure. There are also issues concerning accountability of funds directly transferred to implementing agencies in States. The Eleventh Plan document also referred to innovative methods of financing of projects such as public private partnerships and new administrative mechanisms of implementation and the need, in this context, to clarify the scope of the public sector plan. In response to these issues, Planning Commission set up a High Level Expert Committee to suggest measures for the efficient management of public expenditures.