G.2. Capital Budget
[Image: Process of Capital Budget]
The Capital Budget is an account of the assets as well as liabilities of the Central Government. This shows the capital requirements (for creating long term durable infrastructure) of the government and the pattern of their financing.
The Capital Budget, in turn, has 2 sub-components:
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Capital Receipts |
They comprise the funds received by the government that are not part of the regular income sources. All those receipts of the government which create liability or reduce financial assets are termed as capital receipts. Capital Receipts are of two types:
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Capital Expenditure |
It comprises expenses incurred by the government to create long-term assets and investments that give profits or dividends in the future. Some of the major components of Capital Expenditure include:
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[Image: Capital Receipt]