Question

Answer the following question :

Explain the development and non-development expenditures of government .

Answer 1

The government development and non-development expenditure are as follows :

(i) The government development expenditure is the expenditure that is incurred by it for the economic and social development of the country.

(ii) Expenditure on health, education, industrial development, social welfare, scientific research, etc. is considered as the government developmental expenditure.

(iii) The government non-development expenditure is the expenditure incurred on the essential service of the government.

(iv) Expenditure on administrative services, defence, judiciary, police, etc. is considered as the government non-developmental expenditure.