Question

Difference between developmental and non developmental expenditure

Answer 1

Public expenditure in India is broadly categorised as (1) development and (2) non-development expenditure. Within development (ordevelopmental) expenditure, we make a distinction between revenue and capital expenditure and also betweenplan and non-plan expenditure.

Answer 2

Expenditure:



The important heads of developmental expenditure within the revenue account are (i) social and community services, (ii) economic services and (iii) grants- in-aid to states and union territories. The largest component in this group is economic services.

Economic services include general economic services, agriculture and allied services, industry; and minerals, water and power and power development, transport and communication, railways, post and telegraphs etc.

The components of development expenditure on capital account are: (i) loans and advances to states and union territories, (ii) loans for social and community development services and (iii) loans for economic services.

2. Non-development:

Non-development expenditure on revenue account is divided into two classes, (i) the general services and (ii) the grants-in-aid to states and union territories and also to other countries.

The general services include fiscal services, interest payments, administrative services, defence; services etc. The largest two components of non-development expenditure on revenue account have been defence services and interest payment on public debts.

The components of non- development expenditure on capital account are (i) loans and advances to states and union territories] and (ii) advances to foreign countries