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Capital Budget

   Also found in: Medical, Encyclopedia, Wikipedia 0.01 sec.
Capital budget

Capital Budget
A plan for a company's capital expenditures. Capital expenditures are payments made over a period of more than one year. They are used to acquire assets or improve the useful life of existing assets; an example of a capital expenditure is the funding to construct a factory. Making a capital budget must account for the potential profitability of the plans involved. Calculating the net present value or the internal rate of return are two methods for determining a capital budget.


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24 per cent increase in their municipal tax rate to provide a $500,000 boost to the city's capital budget for 2005.
The city's proposed capital budget envisions spending another $57.
The $42 million cited in the story is the department's annual operating budget, not its capital budget.
 
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