Q.

Which one of the following is a developmental expenditure?

A. Irrigation expenditure
B. Civil administration
C. Debt services
D. Grant-in-aid
Answer» A. Irrigation expenditure
Explanation: Public expenditure whether plans or non-plan or capital or revenue is classified into developmental and non-developmental expenditure. The expenditure which is incurred on activities directly related to economic development is called developmental expenditure. Hence, expenditure incurred on education, health care, scientific research: infrastructure and so on is developmental expenditure. Expenditure incurred on general essential services required for normal running of the government is termed as non-developmental expenditure. Therefore, expenditure incurred on services relating to general administration, police, defense, judiciary etc. is non- developmental expenditure.
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