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Distinguish between the following concept: Developmental expenditure and Non-developmental expenditure. - Economics

Distinguish Between

Distinguish between the following concept:

Developmental expenditure and Non-developmental expenditure.

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Solution

  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 which 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) E.g.: expenditure on health, education, industrial development, social welfare, research, and development, etc. E.g.: administration costs, war expenditure, etc.
Concept: Structure of Public Finance - Public Expenditure
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 8 Public Finance in India
Exercise | Q 2. (3) | Page 79
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