Question
What is the difference between developmental and non-developmental expenditure? Give examples.

Answer

Developmental Expenditure : Developmental expenditure is that expenditure which is incurred on economic and social development of the country.
Example : Expenditures on the development of agriculture, industries, health, education, etc.
Non-developmental Expenditure : Non-developmental expenditure is that expenditure which does not promote economic development.
Example : Expenditure on administrative services like police, defence, administration of justice, general administration etc.

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