Question

Distinguish between the following concepts:

Developmental expenditure and Non-developmental expenditure.

Distinguish between developmental and nondevelopmental expenditure.

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

Answer 1

	Developmental expenditure	Non-developmental expenditure
1)	The expenditure which results in the generation of employment, increase in production, price stability, etc. is known as a developmental expenditure.	The expenditure which does not yield any direct productive impact on the country is called non-developmental expenditure.
2)	It is productive in nature.	It is unproductive in nature.
3)	Example: expenditure on health, education, industrial development, social welfare, research and development, etc.	Example: administration costs, war expenditure, etc.