Answer :

The expenditure that the Government incur is known as public expenditure. This expenditure can increase with an increase in the activities of the government. The Government’s activities can be classified as Developmental and Non-developmental activities.

Developmental activities involves the creation of assets like constructing roads, bridges, railway tracks, container ports, etc. The expenditure for such activities is known as developmental expenditure.


Non-developmental activities are undertaken for the provision of governmental services like paying interest, pension, defence, etc. The expenditure for such activities is known as non-developmental expenditure.


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