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Capital and Recurrent integration in the Budget Preparation Process

What is capital and recurrent budget?
Recurrent expenditure – all payments other than for capital assets, including on goods and services, (wages and salaries, employer contributions), interest payments, subsidies and transfers.
Capital expenditure – payments for acquisition of fixed capital assets, stock, land or intangible assets.
What are the steps in the capital budgeting process?
There are 6 steps in the capital budgeting process.
Identifying the investment opportunities. Gathering investment proposals. Deciding on projects for capital budgeting. Preparation and Appropriation in Capital Budgeting. Implementation of Capital Budgeting. Performance review.
What is the capital budgeting decision process?
A capital budgeting decision is typically a go or no-go decision on a product, service, facility, or activity of the firm.
That is, we either accept the business proposal or we reject it. 2.
A capital budgeting decision will require sound estimates of the timing and amount of cash flow for the proposal.
Creating a budget
1Step 1: Calculate your net income.
The foundation of an effective budget is your net income.
2) Step 2: Track your spending.
3) Step 3: Set realistic goals.
4) Step 4: Make a plan.
5) Step 5: Adjust your spending to stay on budget.
6) Step 6: Review your budget regularly.

The Capital (Development) and Recurrent Expenditure is cascaded from the Secretary to the two Deputy Secretaries to the two Directors. ➢Botswana uses the Autres questions

Capital and Recurrent integration in the Budget Preparation Process

What is capital and recurrent budget?

What are the steps in the capital budgeting process?

There are 6 steps in the capital budgeting process.

What is the capital budgeting decision process?

Creating a budget