General Knowledge - Indian Economy - Discussion

Because this expenditure is used for infrastructure and developing more facilities for states in the country not for defence eqipments for army.!

Yes, this rite answer.

In our country most of the exp.is non developmental in nature like deffence exp.as 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

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

I am agree with rekha defense expenditure is related to our security and power, not belong to our development.

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.

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.

Development expenditure relates to development of a country where as defense expenditure is subjected to power and security.

I'm also agree with Chaitanya

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.