| Developmental Expenditure | Non-developmental Expenditure | 
| (a) The government expenditure which gives productive impact is called developmental expenditure. | (a) The government expenditure which does not yield any direct productive impact, is called non-developmental expenditure. | 
| (b) Developmental expenditure results in the generation of employment, an increase in production, etc. | (b) Non-developmental expenditure does not help to increase employment or production level. | 
| (c) Expenditure on     education, industrial developmental expenditure. | (c) Administration cost, war expenses, etc. are examples of non-developmental expenditure. | 
| (d) They are productive in nature. | (d) They are unproductive in nature. |