Which of the following is true regarding recent changes in annual budget ........

Economic Affairs Public Finance and Debt Management

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Which of the following is true regarding recent changes in annual budget?

The distinction between plan and non-plan expenditure has been done away with

The distinction between Special category states and general category states has been done with.

The transfers to states will now be only through devolution and central assistance for centrally sponsored schemes.

a and b.

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Explanation:

Centrally Sponsored Schemes now form a major part of the Central Assistance(CA) given by the centre to states to implement the state plans. For ease of understanding CSS may now be treated synonymous to CA. There were other types of Central Assistance before 2015-16, but almost all of them are discontinued as states got higher revenue after the 14th Finance Commission recommendations (higher devolution of taxes to states).