General Knowledge - Indian Economy - Discussion

Defence falls under the category of non-develpomental expenditure then how come. Can option a b the answer?

# Non-development Revenue Expenditure.
~ The part of the revenue expenditure that may not contribute to the economic development of the nation is known as non-development revenue expenditure.
~ These include activities such as:
^ Administration of Government Organisations.
^ Maintenance of defence establishments.
^ Interest payments.
^ Subsidies on food, fertilizers, etc.

When defence comes under non-develoment exenditure then how answer can be interest payments AND subsidies ?

CLARIFY PLZ ?

I agree defence comes under non-development expenditure.

Public expenditure in India basically constitutes capital and revenue expenditure. These are included in central plan expenditure, central assistance and non-development expenditure.

Central plan expenditure is for the allocation of resources in development schemes given in plans of the central government and public sector undertakings. Central assistance is the aids provided for plans of state governments and union territories. Capital defence expenditure, loans for public enterprises, states and union territories and foreign governments fall under non-development capital expenditure. Whereas non-development revenue expenditure consists of revenue defence expenditure, subsidies, postal deficit, administrative expenditure, pensions, debt relief to farmers etc.

In govt budget every year defence expenditure is shown as non development expenditure.

I agree and subsidies comes under development.

Defence also is a non-development expenditure.