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Development expenditure of the Central Government does not include:

  1. A
    defence expenditure.
  2. B
    expenditure on economic services.
  3. C
    expenditure on social and community services.
  4. D
    grant to states.

Solution & Step-by-step Explanation

Government expenditure is broadly categorized into developmental and non-developmental:
* Developmental expenditure: Includes investments that directly boost real output and infrastructure, such as spending on economic services, social/community programs, and welfare grants allocated to states.
* Non-developmental expenditure: Includes essential administrative outlays that do not directly yield an economic return, such as defence expenditure, interest payments, and administrative salaries.

Practice this question

Try it yourself before checking the explanation above.

Development expenditure of the Central Government does not include:
A
defence expenditure.
B
expenditure on economic services.
C
expenditure on social and community services.
D
grant to states.

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