Q.2 (A) (iii) Identify and explain the concept : Swara receives monthly pension of ₹ 8,000 from the State Government of Maharashtra.
Best answer
Answer: Public expenditure (non-development expenditure / transfer payment)
Explanation: Public expenditure is the expenditure incurred by the central, state and local governments. Pension paid to retired government employees is a non-development (non-plan) expenditure of the government. It is also a transfer payment, since the government pays it without receiving any current goods or services in return. Swara's pension of ₹ 8,000 is such expenditure of the State Government.
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