A study on Central Government’s developmental and non-developmental expenditure with special reference to selected variables

Public expenditure consists of revenue expenditure and capital expenditure of Centre and State. This paper has examined the developmental and non-developmental expenditure of Centre only. The study found that the exceeding non-developmental expenditure over its developmental expenditure. It is observed that developmental expenditure has helped to bring not only higher growth of GDP but also reducing poverty. Whereas, nondevelopmental expenditure is considered as non-productive sectors that not generating revenue to the government. Unnecessary spending that makes burden to the government. Hence, the government should make expenditure on developmental sectors that transforming the resource for the wellbeing of the public. The study would help to know the trends and changing patterns of developmental and non-developmental expenditure of Centre.