2.1.2. Development and Non-Development Expenditure

Development Expenditure - All expenditures that promote economic growth and social development are termed as development expenditure. These are the same as productive expenditure. Example – education, public health, employment, transport, communication etc.

Non-Development Expenditure - Unproductive expenditures are termed as non-development expenditures. Example – administrative services like police, administration of justice, defence or interest payments, grants to states etc.