The non-plan revenue expenditure of Central Government on Revenue Account include : I. Interest…

Non-plan revenue expenditure of the Centre covered spending that creates no assets, chiefly interest payments, subsidies, defence and grants-in-aid to States and others. Loans to public enterprises create financial assets for the government and so fall in the capital account. That is why any code that adds loans to the revenue items is wrong.

The plan and non-plan split was dropped from the Union Budget from 2017-18, leaving the revenue and capital classification as the main division of spending.