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Which one of the following is a developmental expenditure?
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- Irrigation expenditure
- Civil administration
- Debt services
- Grant–in–aid
- Irrigation expenditure
Correct Option: A
Public expenditure whether plans or non-plan or capital or revenue is classified into developmental and non-developmental expenditure. The expenditure which is incurred on activities directly related to economic development is called developmental expenditure. Hence, expenditure incurred on education, health care, scientific research; infrastructure and so on is developmental expenditure. Expenditure incurred on general essential services required for normal running of the government is termed as nondevelopmental expenditure. Therefore, expendi-ture incurred on services relating to general administration, police, defense, judiciary etc. is non-developmental expenditure.