What do you mean by developmental and non-developmental expenditures?

1.	What do you mean by developmental and non-developmental expenditures?
Answer» The expenditure of the budget of state governments is classified into Developmental expenditures and Non-developmental expenditures. 1. Developmental expenditure: Expenditure that provides a direct boost to economic development is known as developmental expenditure. For example, expenditure on irrigation. 2. Non-developmental expenditure: Expenditure which does not have a direct impact on development is called non-developmental expenditure. For example, expenditure on pensions.

Answer»

The expenditure of the budget of state governments is classified into

1. Developmental expenditure:

Expenditure that provides a direct boost to economic development is known as developmental expenditure. For example, expenditure on irrigation.

2. Non-developmental expenditure:

Expenditure which does not have a direct impact on development is called non-developmental expenditure. For example, expenditure on pensions.

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