As a matter of fact salary system or cash payment has a strong bearing on administration of development. It provides that only living expenses induces bureaucrats to work effectively but also contrary wise it makes possible to control the administrators.
To carry out development tasks, there is thus a great need of the existence of an adequate ‘economic base’. Riggs says, “The level of economic production must be high enough to cover not only the consumption needs of primary producers but also to support an army of employees, both public and private, who engage in secondary and tertiary occupation”.
One of the basic aims of development of a country is to increase the gross national product per capita. Now this depends upon heavily on economic development which in turn is determined by the factors of industrial production, agricultural and non-agricultural, human and natural resources, capitals etc.
On the other side, this level of economic growth and development in the country has to meet the expenses of bureaucratic organization and the proliferation of specialized government agencies.
Thus in this way economic development not only conditions the creation of the kind and extent of bureaucracy it wishes, but also provides effective economic control over the bureaucrats by which to assure greater efficiency and effectiveness in the administration.
Precisely it may be said that a country which has a high level of economic production can build up a strong bureaucracy capable of carrying out programmes which enhance economic productivity and greatly contributes to development goals defined in terms of nation-building and socio-economic progress.
Riggs says, “But where the economy has not reached a sufficiently high level, quasi-salary mode of organizing the bureaucracy brings about the mining of resources and the spread of a parasitical class of since curists who reduce productivity and hence diminish the range of free choice for their society, thereby contributing the economic regression and political breakdown”.
Therefore, in the economic context of development administration, increase in national income enables the society to improve its administrative capabilities and thereby to contribute further to national development.