Explanation: Total expenditure incurred by the government is classified into two segments —developmental and non-developmental.

• All expenditures of productive nature are developmental such as on the heads of new factories, dams, bridges, roads, railways, etc.—all investments.
• The expenditures which are of consumptive kind and do not involve any production are non-developmental, i.e., paying salaries, pensions, interest payments, subsidies, defence expenses, etc.

Source: TMH Ramesh Singh