Non Plan and Plan expenditure

In an earlier blog, I mentioned that the quality of spending is as important as the quantum. In the recent budget, the total plan expenditure is only Rs 373,092 crores. Out of this Rs 315,125 crores come under revenue spending and only Rs 57,967 crores come under capital spending.The non plan expenditure is as high as Rs 735,657 crores of which only Rs 92,508 crores come under capital spending. In general, non pan expenditure is wasteful stuff. Similarly revenue expenditure does not lead to long term income generating assets. In short, of the total expenditure of about Rs 11,08,749 crores, only about Rs 57,967 crores can be considered value adding. If this is the meaning of fiscal discipline, then there must be something wrong somewhere.