Chapter 8 : Public Finance in India Q.3.Distinguish between the following concept 3. Developmental expenditure and Non-developmental expenditure.

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.

 

Chapter 8 : Public Finance in India

Q.3.Distinguish between the following concept

3. Developmental expenditure and Non-developmental expenditure.

Developmental Expenditure

Non-Developmental Expenditure

1. Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country.


1. It refers to those expenditures of the government which does not directly help in the economic development of the country.

2. Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account.

2. Cost of tax collection, cost of the audit, the printing of notes, internal law and order, expenditure on defense, etc. are treated as a non-developmental expenditure. Pension to retired govt. employees, non-developmental assistance to states are also included in this category.

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