2013 Budget – Where does the government spend your money?

by Manshu on March 5, 2013

in Economy

Yesterday I detailed out the sources of funds for the government and in today’s post I’ll show a break up of how the government spends your money.

There are two heads of government spending – Non Plan Expenditure and Plan Expenditure. Non Plan Expenditure is money that’s spent on sustaining the country like defense, postal deficit, subsidies etc. and Plan Expenditure is the money that is spent on improving the country like the money spent on dams, roads etc.

As you would probably expect, a lot more is spent on sustaining the country than is spent on improving it.

Plan versus Non Plan Expenditure

First, let’s take a look at the break up between the Plan and Non Plan Expenditure.

Head In Crore of Rupees
Plan Expenditure 5,55,322.00
Non Plan Expenditure 11,09,975.32
Grand Total 16,65,297.32

Here is a pie chart that shows how this breaks out.

Plan and Non Plan Expenditure

Non Plan Expenditure

Now let’s take a look at the break up of the non major expenditure items.


Head In Crore of Rupees
Interest Payment and Debt Servicing 3,70,684
Defence Services expenditure 2,03,672
Capital Outlay (excluding Defence) 30,131
Grants to State Governments 76,105
Pensions 70,726
Food Subsidy 90,000
Police 40,895
Grants to Foreign Governments 4,144
Transport 3,541
Petroleum subsidy 65,000
Other Non Plan expenditure 155,077
Grand Total 11,09,975

Here is a pie chart that shows the breakup of these numbers.

Breakup of Non Plan Expenditure 2013 - 14

For those who are not familiar with this, the biggest surprise will be how much we spend on interest payments, and the as you saw yesterday, the borrowing keeps rising and so the interest payment will have to go up as well.

Subsidies are another interesting item because it shows the strain on government finances, and even if you get something for less than the market price, ultimately you will have to pay for it.

Plan Expenditure

Now, let’s take a look at the major heads of Plan Expenditure.

Agriculture and Allied Activities 18781.28
Rural Development 42772.55
Irrigation and Flood Control 1200.00
Energy 158286.92
Industry and Minerals 48009.82
Transport 133488.05
Communications 12379.92
Science Technology & Environment 17586.79
General Economic Services 31602.43
Social Services 206708.92
General Services 9306.71
GRAND TOTAL 680123.39

Here is a pie chart that shows the breakup of all these expenses.

Breakup of Plan Expenditure

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