Government expenditure is broadly classified into development expenditure and non-development expenditure. Development expenditure includes spending aimed at promoting economic growth and social welfare, such as investment in infrastructure, education, health, agriculture, etc. Non-development expenditure includes spending on administrative services, defence, interest payments, subsidies, etc. Defence expenditure is a major component of non-development expenditure.
Development expenditure of the Central Government does not include
Asked in WBPSC CS Prelims 2018 · Topic: Fiscal Policy & Revenue (Public Expenditure: Classification, trends, and impact on development)
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