What is Developmental Expenditure?
The expenditure which is related directly to the economic and social development of the country is known as Developmental Expenditure. These expenditures are also known as productive expenditures since they contribute to economic growth by boosting the nation’s production and the real economy. For example, Expenditure on health, social welfare, industrial development, agricultural development, etc. Expenditure on these kinds of services is not a part of the government’s main functioning. Besides, developmental expenditures add to the flow of goods and services in the economy.
Developmental and Non-Developmental Expenditure
The term expenditure describes a payment made in cash or on credit to buy or obtain goods or services. Liabilities incurred in the exchange of commodities or services are referred to as expenditures.
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