Types of Development Expenditure

Types of Development Expenditure

Development expenditure can be analyzed in terms of infrastructure projects, industrial development projects and irrigation & electricity generation projects.

1.    Infrastructure Projects

Development expenditure of government include expenditure on infrastructure projects i.e. roads, bridges, railway lines. Infrastructure expenditure forms a major portion of development expenditure of developed and developing countries.

2.    Industrial Developments

Government makes direct investment in some industrial project which requires huge investment and skills.  Examples of these projects are heavy mechanical and electrical industries. Industrial development projects are carried out by the developing countries.

3.    Irrigation & Electricity Production

Irrigation & electricity generation dam is another area of public expenditure. Theses project requires billion of dollars and therefore private investment is not expected in this area , while these project have fundamental national importance.