GAO Glossary of Terms and Definitions (September 2005)

Capital Budget

A budget that segregates capital investments from the operating budget’s expenditures. In such a budget, the capital investments that are excluded from the operating budget do not count toward calculating the operating budget’s surplus or deficit at the time the investment is made. States that use capital budgets usually include only part of their capital expenditures in that budget and normally finance the capital investment from borrowing and then charge amortization (interest and debt repayment) to the operating budget.

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Capital Lease