Is Development package on cloud for 10 users provides test management solution for free


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Possibly.  Depends on what you mean by "test management", "development package" and so-on.  I'm afraid your question is a little unclear, and it would help if you gave us a little more detail on what you're trying to do.

I need to buy the development package on cloud, and I am asking if it supports creating, executing testcases and link it to defects , I can manage the whole cycle of software testing without extra fees

That really does depend on how you want to do it and what you want. You can try to do test cases inside Jira, or you could link it up to another test management suite. You could use Confluence to document test cases, and/or Bamboo to run them. Or do something else. So, it comes back to what you're looking for. Atlassian does not have an explicit "test management suite", but the development tools cover almost everything else you might need, and the suite can easily be set up to handle testing.

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