The sum of expenditure on education, health, defence, housing, economic affairs and general public services are classified as productive government spending.

What is a productive expenditure?

Productivity is increased in the economy with the help of productive expenditures. Expenditure on infrastructure development, public enterprises or development of agriculture are a few examples.

What is non productive expenditure?

The difference between the actual public spending on the program and the reduced spending that would yield the same social benefit is called unproductive expenditure.

Which expenditure is productive in nature?

Development expenditure results in the generation of employment, increase in production, price stability, and other things. Non-developmental expenditure is the expenditure that doesn’t have a direct impact on the country. It’s productive in the outdoors.

What is transfer and non transfer expenditure?

The creation of income or output of expenses is the focus of non- transfer expenditure. Expenses related to the creation of output directly or indirectly are included. Expenditures incurred on Economic Infrastructure are examples.

What is unproductive sector?

Television equipment used for advertising, guards protecting offices, and advertising consulting services are some of the things that can be found in the un productive activity sectors.

What is planned and non planned expenditure?

Non-plan expenditure is the government’s spending on areas that are not productive. They include salaries, subsidies, loans and interest. The money set aside for productive purposes is what plan expenditure is about.

Is an example of non transfer expenditure?

Expenditures on armaments, education, post and telegraph, agricultural development and railways are some of the important examples of non-transferable expenditures. Current expenditure doesn’t lead to creation of capital assets because they are met from the current revenue.

What is plan and Non-plan?

Non-plan expenditure is what the government spends on non- productive areas, such as salaries, subsidies, loans and interest, while plan expenditure is what the government spends on productive areas.

What is non development expenditure class 12?

Non-developmental expenditure is defined as any expenditure that does not affect the quality of life. Expenditure incurred on essential general services of routine nature like defence, administration, and so on are referred to as essential expenditure.

Which of the following is a non-plan expenditure?

Interest payments, subsidies, wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services, and tax collection are some of the non-plan revenue expenditures.

What do you mean by transfer expenditure?

All expenses of a transfer that the transfer agreement requires the payee to pay or deduct from the gross advance amount are referred to as transfer expenses.

What is productive labour short answer?

The creation of material goods or assets for earning an income is a type of productive labour.

What is productive labor Marx?

It’s important for Marxist economic analysis to know the difference between productive and non- productive labour. Marx considers labour that produces surplus value to be productive labour.

What is the difference between actual and planned expenditure?

There is a difference between planned and actual expenditures. When firms don’t sell as much as they should, inventories rise. Expenditure can be higher or lower than planned.

What is planned expenditure class 12?

The estimated expenditure which is provided in the budget to be incurred during the year on implementing various projects and programmes is referred to as Plan Expenditure. Expenditure in the budget is known as Plan Expenditure.

Why are plan and non-plan expenditure abolished?

What is the reason for the abolition of Plan and Non- Plan Expenditure? The abolition of Plan and Non-Plan expenditure by the Government of India was due to the report of the C Rangarajan Committee. A proper link between Government spendings, earnings, and outcomes can be created with the help of the new classification.

What is Capex example?

Capital expenditures include buildings, computer equipment, and later costs that prolong the useful life of a building. There is equipment for the office. The cost of furniture that is aggregated and treated as a single unit, for example a group of desks, is included in furniture and fixture.

Why is public expenditure important?

Fiscal policy considers public expenditure to be important. Employment opportunities are increased due to public expenditure. Public expenditure can be used to prevent fluctuations.

What is non-plan expenditure Upsc?

Non-plan expenditures are known as non-plan expenditures. Statutory transfers, interest payments, pensions, and other things are examples.

What is capital expenditure and revenue expenditure?

Capital expenditures are purchases of fixed assets that are used to generate revenue over a longer period. Short-term expenses are used to run the daily operations of the business.

What type of economy is China?

State-owned enterprises and public ownership are characteristic of China’s socialist market economy. The two key factors that influence prices are supply and demand in a market economy.

What is final consumption?

Final consumption is the use of goods and services to satisfy individual or collective needs.

What is non-plan expenditure in education?

Non-plan expenditure is what the government spends on things that are not productive.

Does non-plan expenditure contribute to social welfare?

Non plan expenditure contributes to the social welfare. Expenditures on subsidies and the maintenance of law and order are some of the non- planned expenditures.

Which one of the following is the most important item of expenditure of the government of India on revenue account?

Defined as revenue expenditure, pensions, giving subsidies, and interest payments are examples. Interest payments on government debt, including long-term bonds, long-term loans, and other debt instruments, are the most important.

Which of the following item of expenditure is not a part of the plan expenditure?

The budget support to the Central Plan is what plan expenditure is. The revenue and capital component of the budget head are the same. Defense isn’t included in the plan expenditure.

What are the three major ways of public expenditure?

Spending by government, private investment spending, and spending by consumers are some of the components.

What are the main responsible for increase public expenditure?

Public expenditure growth is caused by a few main causes. There is an increase in per capita income. Welfare State Ideology andWagner’s Law 3 are related. War’s effects on the need for defence.

Which one is the capital expenditure?

The money companies use to purchase, upgrade, or extend the life of an asset is known as a capital expenditure. Capital expenditures are investments that have a useful life of at least a year.

What do you mean by preliminary expenditure?

Before the start of business, preliminary expenses are considered as prior expenses and will be treated the same as depreciation. The same treatment is given to depreciation. The expenses that the company’s promoter spent before it was incorporated are known as preliminary expenses.

What is not a component of GDP?

The GDP does not include sales of goods that were produced outside of the country. There are used goods for sale. The black market is a place where illegal sales of goods and services can be found.