Overview

A capital budget is a spending plan that outlines improvements to or acquisition of land, facilities and infrastructure. This plan can also include plans for purchasing heavy equipment. Typically, the plan includes large, long-term investments that have a useful life of more than one year. The capital budget lists each project separately and identifies the funding source for each project along with estimated costs and timeframe of completion. The capital budget is often tied to a long-term capital improvement plan usually covering five - ten years. The capital budget is approved by the governing body.