Development expenditure of the Central government refers to the funds allocated by the government for various developmental initiatives and programs aimed at improving the overall economic and social conditions of the country. It plays a crucial role in promoting growth, reducing poverty, and enhancing the quality of life for citizens. However, it is important to note that there are certain types of expenditures that are not considered as development expenditure. One such type is defence expenditure, which is not included in the development expenditure of the Central government.

Explanation:

1. Definition of Development Expenditure:
Development expenditure refers to the funds allocated by the government for various developmental initiatives and programs aimed at improving the overall economic and social conditions of the country. It includes expenditures on economic services, social and community services, and grants to states.

2. Defence Expenditure:
Defence expenditure refers to the funds allocated by the government for the defense and security of the country. It includes expenses related to the defense forces, defense equipment, defense research and development, and other defense-related activities. Defence expenditure is not considered as development expenditure because it is primarily focused on maintaining national security and safeguarding the country's sovereignty, rather than directly contributing to economic and social development.

3. Importance of Defence Expenditure:
While defence expenditure may not be considered as development expenditure, it is still a crucial component of government spending. National security and defense are essential for maintaining peace and stability within the country and protecting it from external threats. Adequate defense expenditure is necessary to ensure the safety and well-being of the citizens and to preserve the sovereignty of the nation.

4. Categories of Development Expenditure:
Development expenditure of the Central government includes the following categories:

- Expenditure on Economic Services: This includes funds allocated for infrastructure development, industrial growth, agriculture, trade, and other economic sectors. It aims to promote economic growth, create job opportunities, and enhance the overall productivity of the country.

- Expenditure on Social and Community Services: This includes funds allocated for education, healthcare, sanitation, housing, welfare programs, and other social services. It aims to improve the quality of life, reduce poverty, and ensure social inclusion and equality.

- Grants to States: The Central government provides financial assistance to the states for various developmental activities. These grants are aimed at supporting state-level initiatives, promoting regional development, and addressing inter-state disparities.

Conclusion:
In conclusion, development expenditure of the Central government does not include defence expenditure. While defence expenditure is crucial for national security, it is not considered as development expenditure because it primarily focuses on defense and security-related activities rather than directly contributing to economic and social development. Development expenditure, on the other hand, includes funds allocated for economic services, social and community services, and grants to states, which are aimed at promoting growth, reducing poverty, and enhancing the overall well-being of the country.