CBSE Class 12-commerce Answered
Developmental expenditure |
Non- Developmental expenditure |
Refers to the expenditure which is directly related to the social and economic development of the country |
Refers to the expenditure incurred on general services of the government and is indirectly related to the economic and social development of the country |
Examples: expenditure on agricultural and industrial development, provision of health care facilities, setting up educational institutions etc. |
Examples: expenditure on defence, police, justice |
This expenditure adds to the flow and production of goods and services in the country. |
This expenditure is essential for administrative purposes in the country. |