Q138
Indian EconomyPublic Finance, Budget & Taxation
Development expenditure of the Central Government does not include
- a.defence expenditure
- b.expenditure on economic services
- c.expenditure on social and community services
- d.grant to states
Answer: (A) defence expenditure
Development expenditure is spending that directly promotes economic and social development: economic services (agriculture, industry, transport), social and community services (education, health) and grants to states for development purposes. Non-development expenditure covers defence, interest payments, administrative services, tax collection and pensions. Hence defence expenditure is the one not included.