With reference to the Planned expenditure of the government, which among the following statements is / are correct?
1.They are generally the routine expenditures of the Government
2.They are generally routed through the central ministries to state governments
3.They are generally incurred in the name of Planning
Choose the correct option from the codes given below:

Answer: [B] Only 2 & 3 are correct

Plan Expenditures
The plan components relate to items dealing with long-term socio-economic goals as determined by the ongoing plan process. They often relate to specific schemes and projects. Furthermore, they are usually routed through central ministries to state governments for achieving certain desired objectives. These funds are generally in addition to the assignment of central taxes as determined by the Finance Commissions. In some cases, the state governments also contribute their own funds to the schemes.
Non Plan Expenditures
Non-plan expenditures broadly relate to routine expenditures of the government for administration, salaries, and the like.

This question is a part of GKToday's Integrated IAS General Studies Module