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The Government : Budget And The Economy
Question
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Differentiate between developmental and non-developmental expenditure.

Answer

Development expenditure refers to expenditure on activities which are directly related to economic and social development of the country, e.g., expenditure on health, education, agriculture, etc. Non-developmental expenditure refers to expenditure on essential general services of the government, e.g., expenditure on police, judiciary, defence, general administration, etc.

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Some More Questions From The Government : Budget And The Economy Chapter

Explain components of Capital Receipts.
or
Name two sources of Capital Receipts.
or
Why is recovery of loan treated as a capital receipt? 

Giving reasons categorise the following into revenue receipts and capital receipts. 
(i) Recovery of loans, (ii) Corporation tax, (iii) Dividend on investment made by govt. (iv) Sale of public sector undertaking.

Define a tax.    

Distinguish between Direct and Indirect taxes.
or
What is the basis of classifying taxes into direct tax and indirect tax? Give an example of each. 

Classify the following into direct and indirect tax. Give reasons.
(i) Wealth tax, (ii) Entertainment tax, and (iii) Income tax. 

What is meant by Budget (Government) Expenditure? Describe its components (items).

Distinguish between revenue expenditure and capital expenditure.
or
What is the basis of classifying government expenditure into revenue expenditure and capital expenditure? 

Why are subsidies treated as revenue expenditure? 

Why is payment of interest a revenue expenditure?

Why is repayment of loan a capital expenditure?