Question

Which of the following is a key characteristic of non-developmental expenditure?

• A. It is essential for immediate public services.
• B. It does not directly contribute to economic growth or development.
• C. It is primarily used for long-term investments.
• D. It has a direct impact on increasing GDP.

Answer 1

Answer:

B. It does not directly contribute to economic growth or development.

• Non-developmental expenditure includes spending on administrative services, defense, and debt payments.

• While these are essential for the functioning of the state, they do not directly boost economic productivity.