General Knowledge - Indian Economy - Discussion

Discussion :: Indian Economy - Indian Economy (Q.No.2)


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: Option A


No answer description available for this question.

Shasha.736 said: (Nov 18, 2010)  
Because that is not comes under development.

Simple reason is it is for protection purpose.

Chaitanya said: (Dec 2, 2010)  
Of course it is.

But grant to states may not be considered as development expenditure as the central govt. has the obiligation to give grants to the state govt.s as some part of the tax revenue is being collected by the cent govt.

Prakash said: (Dec 26, 2010)  
I am agreed with the point of chaitanya.

Mohd. Alam said: (Jan 14, 2011)  
Defence is not development as it is protection from others.
Development means to transform the initial condition/status.
But there is no transformation,it is just protective nature.

Vijay said: (Feb 6, 2011)  
What I think defence is right ans bez. No return is ther from such expenditure.

Rekha said: (Feb 13, 2011)  
Defence expenditure is not the part of development expenditure. It is the security expenditure.

Anas said: (Apr 1, 2011)  
Yes rekha, it is belongs to central.

Kanu said: (Apr 18, 2011)  
Yes, I agree with this answer.

Bedashree said: (Jul 6, 2011)  
Defence expenditure is not a part of development expenditure. Because it is security and protection expenditure.

Sunny said: (Sep 10, 2011)  
Vijay you are rite, I agree with your point of view.

Gurpreet Singh said: (Sep 19, 2011)  
Because this expenditure is used for infrastructure and developing more facilities for states in the country not for defence eqipments for army.!

Regis said: (Jan 9, 2012)  
Yes, this rite answer.

Aasif said: (Feb 17, 2012)  
In our country most of the non developmental in nature like deffence it does not add to our national output in keynessian sence. if this exp will be spent on productive activities our economy will grow as compared to previous year it is expected this year GDP WILL be only 6.9 % compared to 8 %in the previous year as investment rate is low so govt should take effective measures to increase our MPI

Raji said: (Mar 6, 2012)  
India's GDP grows at 8.5% in FY-2011, Q4 growth at 7.8%, Confirming fears of a slowdown, India's economy grew by just 7.8 per cent in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector, as against 9.4 per cent in the same three-month period of the previous fiscal.

However, economic growth, as measured by the Gross Domestic Product, improved to 8.5 per cent in 2010-11 from 8 per cent in 2009-10 due to better farm output and construction activities and financial services performance.
So, Please refer Mr. Assif

Pawan Kumar Mukhi said: (Mar 22, 2012)  
I am agree with rekha defense expenditure is related to our security and power, not belong to our development.

Dipal Patel said: (Apr 28, 2012)  
Yes, development expenditure does not include defense expenditure by central government but I think that there should be consider defense expenditure as developmental expenditure because today India is not safe by her enemy countries and terrorist. So govt. Should increase expenditure in defense.

Samitha said: (May 7, 2012)  
If think about countries long term stability with out any interruption of civil wars, help to development in all the aspects of the economy and this will be a development expenditure when consider the damage's and interruption done by the civil wars and creation instability of the economy.

Dilawar said: (Jul 17, 2012)  
Development expenditure relates to development of a country where as defense expenditure is subjected to power and security.

Santosh said: (Nov 9, 2012)  
I'm also agree with Chaitanya

Suhas S Aradya said: (Dec 28, 2012)  
A) Defence expenditure.

Explaination-All expenditures that promote economic growth and development are termed as development expenditure. Expenditure on infrastructure development, public enterprises or development of agriculture increase productive capacity in the economy and bring income to the government.

Expenditures in the nature of consumption such as Defence, interest payments, expenditure on law and order, public administration, do not create any productive asset which can bring income or returns to the government are non-development expenditure.

Hamne Vishal said: (Jul 9, 2013)  
Central government should have separate expenditure for Defence.

Sohail said: (Aug 16, 2013)  
Because, it doesn't come under development.

Sushma said: (Oct 10, 2013)  
Yes I'm agree defence is not come under development.

Shivakumar said: (Oct 28, 2013)  
Ya that is not development expenditure because they protection to the country.

Aruna said: (Dec 23, 2013)  
Defence is an integral part of development. The strength of a country in defence is speculated world wide.

Muhammed Ashiq Csa said: (Mar 22, 2014)  
India spends a lot for defense, in different fields, but apparently those did not interfere with development.

Sujit said: (May 20, 2014)  
Defence expenditure is not directly helps in the increase of output of a country & so not to the development. Due to this reason it is considers as a part of non-development expenditure.

Denzel Romney said: (Aug 3, 2014)  
Defense expenditure could be a part of economic development, because doesn't this provide a safer place for people to reside, therefore attracting more tourist to a country. Due the this there will be a greater inflow of money, improving welfare for all. Also aren't foreigners more likely to invest in a country that has lower crime rate and at least some political stability.

S.Ram Kumar Reddy said: (Sep 29, 2014)  
Defence expenditure could lot of these, but development of expenditure of central government aim.

Shivam said: (Oct 5, 2014)  
It counts just as an investment which may or may not be used in the future and apart from that, no Indian citizen is going to be benefited from that money that's why we cannot consider as the part of development.

The other options are fairly valid and can be counted as developmental processes.

Santosh Naik said: (Dec 19, 2014)  
It is come under non plan expenditure.

Prerna said: (Dec 27, 2014)  
Defence expenditure does not included in development expenditure because development expenditure is planned expenditure while because of the uncertainty of war, defence expenditure is non-planned expenditure.

Navin said: (Jan 2, 2015)  
Defence means protection, so these cannot be termed as in the development issues, development has the ability to modernize something from his last origin.

Venkatswamy said: (Mar 13, 2015)  
Income is a budget which we got as salary, expenditure is a budget which we spend the money for other things ex;we are buying the bat which we giving money. To the shop owner is expenditure so defense expenditure is unnecessary to develop expenditure.

Sk Milan said: (May 15, 2015)  
I think grant to states much need for economic development and at the same time defense expenditure is no need for economic development it just like a protection purpose.

Kohila said: (Jul 28, 2015)  
Yes. I agreed, defense is not come under development.

Sonam said: (Jul 31, 2015)  
Because Defense expenditure doesn't led to creation of any development asset and it comes in the category of unplanned expenditure.

Pankaj said: (Jan 31, 2016)  
Without defense power nothing can grow.

Masoom said: (Feb 13, 2016)  
Defence expenditure comes under protection expenditure or unplanned expenditure not development expenditure.

Majid said: (Mar 24, 2016)  
When there is a point of Development. Automatically it points out Defence.

So as per me Defence expenditure should be suitable.

Abdi said: (Oct 17, 2016)  
Defense expenditure is not part of the development, it adds up defense expenditure.

Vankatesk said: (Nov 7, 2016)  
Good and useful information. Thank you all.

Sushmita said: (Nov 9, 2016)  
Defense does not come under development.

Pooja said: (Nov 26, 2016)  
Defense is for the security purpose not for development. Grant paid to state also relate with development within the state may be through the various scheme.

Goutam said: (May 31, 2017)  
Why not grand to state?

Ankit Sarda said: (Aug 4, 2017)  
According to me, any expenditure can't be a grant to any government, however, defence expenditure can be development expenditure for their respective department. It will be inappropriate to say for this perticular que that this is not defance expenditure. Answer should be IV.

Manjunath G Wali said: (Dec 24, 2017)  
The development expenditures if central government not includes, the expenses made on defence because of there is not returns and those expenditures are burden to any government and India com3s under top 10 countries which spend more on defence.

Umesh Jain said: (Jun 28, 2018)  
India spent a lot of percentage of GDP on defense expense, however simply this reason can not change its characteristics to development exp. Defense expenditure is for sure incurred for safety and security of state and its people, so it should not included in development category.

Smriti said: (Oct 28, 2018)  
Defence doesn't come in development expenditure. But what about grants to states?

Anyone tell me.

Anand said: (May 6, 2020)  
Transformation of security and power itself. Its development of Our security can we take it's as our productive outcome?

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