Question

Explain the Developmental and Nondevelopmental Expenditure of Government

Answer 1

Developmental expenditure refers to the expenditure on activities that are directly related to the social and economical development of the country. For instances, the expenditure incurred on agriculture, health, education are referred to as development expenditure.

Non-developmental expenditure refers to the expenditures on activities that are related to the general essential services such as defence, administration and so on. This kind of expenditure does not directly help in the economic development of the country.