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Public Budgeting: Distinguish

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Two Public Budgeting questions: Distinguish between capital budgets and operating budgets &List the warning signs for a municipality that is in financial trouble.

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Distinguish between capital budgets and operating budgets; List the warning signs for a municipality that is in financial trouble.

Capital budget encompasses planned outlays for assets that remain with the government for long and are likely to generate revenue or operations for several years. Usually, land buildings, office machinery, furniture, machines, and vehicles are included in capital budget. The spending on capital items is expensed over several years. On the other hand the operating budget is the annual budget of an activity that has estimates of the total value of resources needed ...

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  • MBA, Eastern Institute for Integrated Learning in Management
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