mention the broad classification of causes of public expenditure
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classified public expenditure on the basis of functions performed by the government. They are defence expenditure, commercial expenditure and development expenditure.
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Dalton classifies public expenditure into two categories – grants and purchase price. When the state incurs expenditure and does not get any commodity or service in return, the expenditure is classified as a grant. For example, expenditure on poor relief, payments of old age social insurance etc. are grants.
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