Capital Budgeting by the Federal Government
AbstractWhat is a capital budget? Why does the federal government not have one? This paper attempts to address both questions. It explains how capital projects at the federal level are budgeted for on a cash-basis, as is the case for all spending in the unified budget, and why this matters. Specifically, it will consider how well this budgetary treatment leads to an efficient allocation of capital spending, government accountability, and long-term planning. It also examines alternative ways to budget for capital spending that have been proposed, their rationales, and whether they might lead to better outcomes. First, however, this paper turns to define “capital” and how other entities besides the federal government budget for capital projects.
The journal is published under the terms of the Creative Commons Attribution (CC BY) License which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Copyright on any research article in a journal published by a Journal is retained by the author(s). Authors grant Washington Institute of China Studies a license to publish the article and identify itself as the original publisher.
The Creative Commons Attribution License (CC BY) allows users to copy, distribute and transmit an article, adapt the article and make commercial use of the article. The CC BY license permits commercial and non-commercial re-use of an open access article, as long as the author is properly attributed.