Developmental expenditure : The expenditure which results in generation of employment and price stability, it is known as developmental expenditure.
It consists of expenditure on education, social welfare, industrial development, etc. It leads to an increase in production. It is s productive in nature.
Non-developmental expenditure : It is that government expenditure which does not yield any direct productive impact on the economy. It is mainly in form of expenses on administration costs, war expenses, etc. It is unproductive in nature. It is observed that, since last 30 years, there is a tremendous growth in the total public expenditure of a country because modern government performs many functions for the social and economic development of a country.
