Public expenditure whether plans or non-plan or capital or revenue can also be classified into developmental and non-developmental expenditure.
The expenditure which is incurred on activities directly related to economic development is called developmental expenditure. Hence, expenditure incurred on education, health care, scientific research; infrastructure and so on is developmental expenditure.
Non-develop mental Expenditure:
Expenditure incurred on general essential services required for normal running of the government is termed as non-developmental expenditure.
Therefore, expenditure incurred on services relating to general administration, police, defense, judiciary etc. is non-developmental expenditure.