Question

In 2018–19, the Government of India had spent 12% of the total expenditure on defence and 8% on giving subsidies to the farmers. 6% of the total expenditure was done on building transportation facilities.
Answer the following questions based on the above information.

(a) Expenditure on defence and subsidies are known as what type of expenditures?
(b) Why is there a need to spend on defence and subsidies?

• A. (a) Developmental expenditures
  (b) For the development of the nation
• B. (a) Non-developmental expenditures
  (b) For the development of the nation
• C. (a) Non-developmental expenditures
  (b) For the smooth functioning of a country
• D. (a) Non-developmental expenditures
  (b) For the smooth functioning of a country

Answer 1

The correct option is C (a) Non-developmental expenditures

(b) For the smooth functioning of a country
The expenditure that leads to the development of the nation is called developmental expenditure. For example, infrastructural projects, the setting up of heavy industries, development of agriculture and rural areas, etc. Whereas, expenditure on defence, security, and law and order, welfare schemes, etc., done for the smooth functioning of the country is known as non-developmental expenditure.