Question

Distinguish between the following concepts:

Developmental expenditure and non-developmental expenditure.

Distinguish between developmental and non-developmental expenditure.

What is the difference between developmental and non-developmental expenditure? Give examples.

Distinguish between developmental and non-developmental expenditure of the government.

Answer 1

Sr. No.	Developmental expenditure	Non-developmental expenditure
1.	The expenditure which results in the generation of employment, increase in production, price stability, etc., is known as a developmental expenditure.	The expenditure that does not yield any direct productive impact on the country is called non-developmental expenditure.
2.	It is productive in nature.	It is unproductive in nature.
3.	It leads to capital formation, employment generation, and better infrastructure.	This helps in law and order, administration, and servicing public debt.
4.	Example: Expenditure on health, education, industrial development, social welfare, research and development, etc.	Example: Administration costs, war expenditure, etc.