Developmental expenditure: The term “developmental expenditure” refers to government spending that aids in economic development by boosting the country’s production and real income.
Some call it productive expenditure because it aids in enhancing the economy’s production and productivity.
Revenue development expenditure is split into two categories: revenue development expenditure and capital development expenditure.
Non – developmental expenditure: It refers to government spending that does not directly contribute to the country’s economic progress.
Non-developmental expenditures include tax collection, auditing, note printing, internal law and order, defense spending, and so on.
This category also includes pensions for retired government personnel and non-developmental support to states.
Non-developmental revenue, expenditure, and capital expenditure are all examples of non-developmental spending.
Final Answer:
Developmental expenditure directly helps in economic development such as economic services and non – developmental expenditure of government does not directly helps in economic development such as defence expenditure.
