This paper attempts to examine the impact of National Income (Gross Domestic Product) on Government Development and Non-development Expenditure in India. Cross-sectional relationship is expected between year-wise National Income (Gross Domestic Product) at constant prices and Government Development and Non-development expenditure in India, for the study years 1980 to 2011. Cross-sectional analysis of data from 32 years during 1980 to 2011 of India showed significant association between year-wise number of National Income (Gross Domestic Product) at constant prices and Government Development and Non-development Expenditure. In this paper, we have found out that National Income (Gross Domestic Product) at constant prices has positive influence on Government Development and Non-development expenditure in India.