Development expenditure refers to spending that directly contributes to economic growth and development and social welfare, such as expenditure on infrastructure, education, health, agriculture, industry, research, etc. Non-development expenditure includes spending that is essential for the functioning of the government but does not directly promote growth, such as interest payments, administrative services, subsidies (if not growth-oriented), and defence.
Development expenditure does not include expenditure on
Asked in APPSC Group II Prelims 2018 · Topic: Fiscal Policy & Revenue (Public Expenditure: Classification, trends, and impact on development)
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