Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board.
Chapter 8 : Public Finance in India
Q.3.Distinguish between the following concept
3. Developmental expenditure and Non-developmental expenditure.
Developmental Expenditure | Non-Developmental Expenditure |
1. Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country.
| 1. It refers to those expenditures of the government which does not directly help in the economic development of the country. |
2. Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account. | 2. Cost of tax collection, cost of the audit, the printing of notes, internal law and order, expenditure on defense, etc. are treated as a non-developmental expenditure. Pension to retired govt. employees, non-developmental assistance to states are also included in this category. |
