Question

Non-Developmental Expenditure is characterized as expenditure that:

Options

• reduces financial liabilities

• does not directly help economic development but is needed for essential general services

• creates physical or financial assets

• directly increases production and real income

Answer 1

Non-Developmental Expenditure does not directly help economic development but is needed for essential general services. Developmental Expenditure, on the other hand, increases production and real income and is directly linked to economic and social development.