Revenue Budget Vs Capital Budget

The key difference between capital budget and revenue budget is that capital budget assesses the long term financial viability of investments by comparing future cash inflows and outflows whereas revenue budget is a forecast on revenue that will be generated by the company.

Revenue budget vs capital budget. In short revenue budget has revenue receipts and expenditure. The revenue account shows the current receipts of the government and the expenditure that can be met from these receipts. A typical capital budget will extend over five or 10 years. 1 comment on the government budget.

Recoveries of loans given to state govt and union territories 3. Market loans sale of t bills and other loans borrowed from foreign bodies. Capital budgets focus on internal investment strategy and are usually long term although they may be updated annually. Revenue expenditure vs capital expenditure economy bits.

The differences between capital expenditures and revenue expenditures include whether the purchases will be used over the long term or. Capital expenditures can affect a company s operational budget. Revenue accounts cover those items which are of recurring nature and are non redeemable. Difference between capital and revenue budget.

Capital budget has capital receipts and payments. Capi tal budget on the other hand comprises capital receipts and capital expenditure of the government. Budgetary terms duration. Revenue budget capital budget government deficits.

It includes capital receipts and capital expenditure capital receipts 1. Provident funds and other deposits into the public account capital expenditure 1. Revenue budget orientation only to the receipt of revenue of government and laid less emphasis on development work but the capital budget has the capacity of creating development work with respect to the budgetary deficit and fiscal deficit. The key difference between capital budget and revenue budget is that capital budget assesses the long term financial viability of investments by comparing future cash inflows and outflows whereas revenue budget is a forecast on revenue that will be generated by the company.