Question

The classification of budgets into Development Budget and Non-Development Budget is based on:

Options

• Normal or emergency conditions

• Contribution to economic development

• Planned development programmes

• The nature of receipts and expenditure

Answer 1

Development and Non-Development Budgets are distinguished on the basis of their contribution to economic development. Each classification of budget rests on a distinct criterion, such as the level of government or the nature of receipts and expenditure.