1.

Compare developmental and non -developmental expenditure and give examples for each.

Answer»

Public expenditure can be classified into developmental and non developmental expenditure. Any expenditure that creates assets for the future is called developmental expenditure.

Examples :- construction of roads, bridges, and harbors, setting up of educational institutions, starting up new enterprises etc.

Expenditures that does not create any assets are called non-developmental expenditure.

Examples :- expenditure incurred by way of war. interest, pension etc.



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