Capital Budget in the United States

Capital Budget in the Federal Budget Process

Meaning of Capital Budget in the congressional and executive budget processes (GAO source): A budget that segregates capital investments from the operating budget’s expenditures. In such a budget, the capital investments that are excluded from the operating budget do not count toward calculating the operating budget’s surplus or deficit at the time the investment is made. States that use capital budgets usually include only part of their capital expenditures in that budget and normally finance the capital investment from borrowing and then charge amortization (interest and debt repayment) to the operating budget.

Resources

See Also

• Federal Appropriations
• Entries about the United States Budget Process in the Encyclopedia (including Capital Budget)
• Public Debt

Further Reading

• Legislatures and the budget process: the myth of fiscal control

  (J Wehner, 2010)

• Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
• Fiscal institutions and fiscal performance

  (JM Poterba, J von Hagen, 2008)