Types of Budget in Public Finance

The three main types of budget in public finance are operating budget, capital budget, and cash flow budget.

A capital budget in public finance is focused on the acquisition and maintenance of fixed assets, such as infrastructure and equipment, rather than the day-to-day expenses and revenues covered in an operating budget.

An operating budget in public finance outlines the day-to-day expenses and revenues for a specific period, typically one year, and focuses on the current operations of the government or public entity.