This type of expenditure does not contribute in the development of a country, and is provided on general services. This includes expenditure incurred on interest payments, subsidies, defense, pensions etc .
What option does the central government does not include?
Expenditure on economic service, expenditure on social and communist services, grant to states are examples of developmental expenditures. Among the given options, defense expenditure is not an example of developmental expenditure.
What expenditure central government has not included in development expenditure?
Development expenditure of the Central Government does not include. defence expenditure .
Which is not counted as public expenditure?
Which is not counted as public expenditure? Interest payment on national debt .
What does government expenditure include?
Government spending or expenditure includes all government consumption, investment, and transfer payments . ... Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross capital formation).
Which is not development expenditure?
(ii) Non Developmental Expenditure
it refers, to those expenditure of the government which does not directly help in economic development of the country. Cost of tax collection, cost of audit, printing of notes, internal law and order, expenditure on defence etc. are treated as non-developmental expenditure.
What is Non Plan capital expenditure?
Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments .
Which of the following is the cause of growth of public expenditure?
Some of the main causes of public expenditure growth are: 1. Income Elasticity and Increase in Per Capita Income 2. Welfare State Ideology and Wagner’s Law 3. Effects of War and the Need for Defence 4.
Which of the following is a development expenditure of the government of?
Developmental expenditure refers to the expenditure of the government which helps in economic development by increasing production and real income of the country. Developmental expenditure on revenue is divided into developmental expenditure on revenue account and developmental expenditure on capital account.
Which one of the following is the largest item of expenditure of the government of India on revenue?
Explanation: The largest item of expenditure in the Union Budget 2020-21 is ‘ State’s share of taxes and duties ‘. This item accounts to 20% share of the total expenditure of the Central Government. 2.
What are the three major ways of public expenditure?
three major components: spending by government, private investment spending, and spending by consumers .
What are the types of public expenditure?
- 1# Capital & Revenue Expenditure.
- 2# Development & Non-Development Expenditure.
- 3# Transfer & Non-Transfer Expenditure.
- 4# Plan & Non-Plan Expenditure.
Is revenue a expenditure?
Revenue expenditures are short-term expenses used in the current period or typically within one year . Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).
What are the major expenditure of the government?
The four main areas of federal spending are national defense, Social Security, healthcare, and interest payments , which together account for about 70% of all federal spending. When a government spends more than it collects in taxes, it is said to have a budget deficit.
Does government spending affect GDP?
Increased government spending will result in increased aggregate demand , which then increases the real GDP, resulting in an rise in prices. This is known as expansionary fiscal policy.
What are the objectives of government expenditure?
The objectives of public expenditure are to maintain economic stability . Government participation is important when a country faces inflation or deflation. Economic stability can come back under the market process. Thus, the government needs to increased expenses or reduce expenses.
