Question

Explain the governments development and non-development expenditure.

Answer 1

• Development and nondevelopment expenditure of the government are as follows

• Development expenditure means the expenses of the government helps in economic growth by improving the production and real revenue of the country.

• Nondevelopment expenditure is incurred or imperfect development.

• Nondevelopment expenditure is referred to as the activities of the government in the form of expenses of general services of the government.

• Nondevelopment expenditures are like administration, defense, tax collections, etc.

• Development expenditures are like agriculture and industrial expenditures.