SHILLONG: The cabinet on Tuesday approved the merger of plan and non-plan expenditures which will be introduced in the State Budget to be presented during the upcoming session.
While the plan budget is related to development schemes, the non-plan is regarding the establishment costs.
Chief Minister Mukul Sangma, who also holds the finance portfolio, told reporters after the cabinet meeting that the Centre had done away with segregation of plan and non-plan budgets and this would be reflected in the State Budget.
He also said the state government, in the last Assembly sessions of 2015-16 and 2016-17 had mentioned about the financial transactions which the State would have to undertake in respect of merger of plan and non plan.
The state Planning and Finance departments have formulated the structure of the merger, he added.
Though it is an initial step, in the successive years, more comprehensive steps will be taken to fully implement the system.
He, however, said the departments would be able to spend the allocated funds on both development initiatives and establishment costs despite the merger.
