^{PDFprof.com Search Engine}

Recurrent Expenditure Requirements of Capital Projects

What is a recurrent expenditure?
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 is recurrent capital budget?
A recurrent budget can help a company manage its money and come up with strategies for cutting day-to-day costs.
Capital budgets focus on business growth and improvements, while recurrent budgets focus on standard operations.
Still, there are times when the two interact.
What are the categories of recurrent expenditure?
Recurrent expenditure on goods and services is expenditure which does not result in the creation or acquisition of fixed assets (new or second-hand).
It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services, and consumption of fixed capital (depreciation).
Expenditure associated with construction of new assets and improvement/extension/rehabilitation/enhancement to existing assets is capital expenditure and will be added to the carrying value of the relevant asset.
Expenditure associated with repair/maintenance of existing assets is current expenditure.

Recurrent expenditures associated with a public investment project are those operations and maintenance expenditures needed to run the project at a level consistent with its expected use, and to maintain the capacity of the investment during its expected lifetime.

Capital and Recurrent integration in the Budget Preparation Process

Recurrent Expenditure Requirements of Capital Projects

What is a recurrent expenditure?

What is recurrent capital budget?

What are the categories of recurrent expenditure?