The term capital budget is meant broadly. It embraces the identification,
prioritization, and planning for capital needs over a multi year
future period; assessment of financial capacity; financial
forecasting; development and use of suitable capital financing
options; the evaluation, design, and costing of capital projects; project
authorization and appropriation; and project implementation.
This chapter emphasizes capital budgeting in local government,
although many of the concepts and approaches discussed here are
also applicable to regional or state-level governments or public entities.
The chapter addresses the reasons for capital budgeting, defines
capital expenditure, and discusses which capital expenditures and