What is the purpose of a capital budget?

CA Foundation · Business Economics · MTP · April 2025
What is the purpose of a capital budget?
(A) A. Funding day-to-day government operations
(B) B. Financing long-term investments and projects
(C) C. Managing short-term financial needs
(D) D. Controlling inflation

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Financing long-term investments and projects

Topics: Public Finance

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