Question

Answer the following question

Explain the government’s development and non-development expenditure.

Answer 1

Development expenditure - This refers to the budget expenditure which is incurred by the government on economic growth and development activities. For example, expenditure on education, development of infrastructures etc.

Non-development expenditure- This refers to the budget expenditure which is incurred on the non-developmental activities. This expenditure does not directly contribute to the national income but accelerates the process of economic growth and development. For example, expenditure on administration, law and order, transfer of payments etc.