Development expenditure of the Central Government does not include

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Defence expenditure is one of the biggest components in Non-plan expenditure along with interest payments and subsidies. Non-plan expenditure includes such expenditures which are routine and obligatory in nature. It is accounted for by interest payments, subsidies, wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, grants to foreign governments, defence, loans to public enterprises, loans to States, Union Territories [www.data.gov.in]. Development expenditure, on the other hand, is a Plan expenditure. Such expenditure showcases current development and investment outlays that are incurred owing to the proposals in the ongoing plan. The major heads under developmental expenditure are (i) social and community services, (ii) economic services and (iii) grants- in-aid to states and union territories, (iv) loans and advances to states and union territories, (v) loans for social and community development services and (vi) loans for economic services. While the various loans are disbursed on capital account of development expenditure, the remaining are expenditure on revenue account. Of the development expenditures on the capital account, economic services are the largest component and "include general economic services, agriculture and allied services, industry; and minerals, water and power and power development, transport and communication, railways, post, telegraphs, etc."