Question

Developmental Expenditure helps economic development by:

Options

• increasing production and real income, being directly linked to economic and social development

• covering currency printing and internal law and order

• providing non-developmental assistance to States

• supporting tax collection and audit

Answer 1

Developmental Expenditure helps economic development by increasing production and real income, and is directly linked to economic and social development. Tax collection, audit and currency printing are Non-Developmental Expenditure.