Question

What is a capital budget?

Answer 1

• Receivables from market loans, borrowings from the R.B.I., sales of Treasury bills and long-term securities, and loans from foreign governments and institutions make up the capital budget.
• Capital expenditures are those expenditures of the government that lead to the creation of physical and financial assets or the reduction of financial liabilities.

Answer 2

Capital Budget refers to the part of the government budget that deals with capital receipts and capital expenditures.