Question : What is the purpose of a capital budget?
Option 1: To fund ongoing operations of the government
Option 2: To fund major infrastructure projects
Option 3: To fund social welfare programs
Option 4: To fund military operations
Correct Answer: To fund major infrastructure projects
Solution : The correct answer is (b). To fund major infrastructure projects.
The purpose of a capital budget is to allocate funds specifically for major infrastructure projects and investments. A capital budget focuses on long-term investments in physical assets, such as buildings, roads, bridges, airports, schools, and other infrastructure systems. These projects often have a significant impact on the economy and society as a whole.
Capital budgets are separate from operating budgets, which are used to fund the ongoing day-to-day operations of the government, including salaries, utilities, maintenance, and other recurring expenses.
By having a separate capital budget, governments can prioritize and plan for large-scale infrastructure projects that require substantial funding. This allows for careful consideration of the costs, benefits, and feasibility of various projects to ensure that resources are allocated efficiently and effectively.
.jpg)
