The Meghalaya government has decided to do away with the distinction between Plan and Non-Plan expenditures in its budget for the fiscal 2017-18, Chief Minister Mukul Sangma said on Wednesday.

"The Cabinet which met on Tuesday evening has approved the proposal for merger of Plan and Non-Plan expenditure in the state budget," Sangma, who also holds the Finance portfolio, told the media.

The budget session of the Meghalaya Assembly is slated to be held from March 3.

In fact, the Union budget had merged the Plan and Non-Plan expenditures, as well as the merging of the general and railway budget.

Under Plan expenditure, the government incurred expenses for various developmental projects, whereas the Non-Plan expenditure was allocated for salaries, office expenses, subsidies, loans and interest.

Sangma said that allocation of funds to various departments would be based on this exercise.

He said the exercise to change the budgetary format was given to the planning and finance department, after which a proposal was made jointly for approval of the cabinet.