1. Classification based on Benefits: Plehn & Cohn

1- Public expenditure that benefits the entire community. E.g. exp.on defence, education

2- Public expenditure that benefits certain people. E.g. old age pension, medical insurance, free education, unemployment allowance.

3- Public expenditure that benefits certain people & the entire community as well. E.g. administrations of society.

4- Public expenditure that benefits particular groups. E.g. subsidy to a particular industry

2- Classification based on Income: Nicholson

a) The expenditure which does not yield any revenue to the govt.e.g. exp. On wars, assistance given by state to the poor.

b) The expenditure which does not yield any revenue to the govt. directly . E.g. free education

3. The expenditure which yield direct partial return . E.g. education for which fees are charged.

4. The expenditure which yield full return or even profit. E.g. post office, gas service.

3- Classification based on Functions: Adams Protective functions: is expenditure incurred by the govt. to provide safety to the life and property of the country. E.g. police, military, courts etc.

Commercial functions: helps to promote trade, industry and commerce of the country. E.g. fairs and exhibitions.

Developmental functions: that promotes economic growth of the economy. E.g. exp on education, roads and railways etc.

4- Classification based on compulsion: J.S.Mill

Necessary or obligatory exp: e.g.defence, justiceOptional exp: e.g. exp on railways, roads

5. Roschers Classification

Necessary exp: exp cannot be postponedUseful expSuperfluous exp: exp that the state may or may not incur

6. shirrass Classification Primary exp: i) exp on defence ii) exp on civil administration iii) exp on the maintenance of law & order iv) exp for the payment of debt & debt servicesb) Secondary exp: i) ecp on education, health, housing, famine or flood relief ii) exp on railways, roads, canals & other public works, posts & telegraphs iii) miscellaneous exp includes pension charges

7. Daltons Classification

Grants- when the govt spends money and does not get anything in returnPurchase price

8. Pigous Classification:

TRANSFERABLE EXPNON-TRANSFERABLE EXP

9. Mehtas Classification:

Constant exp- exp on defence

Variable exp: exp on postal services

10. Economic Classification:

Revenue exp: does not create assetsCapital exp: creates assets

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