Questions and Answers
What are the three main types of budget in public finance?
The three main types of budget in public finance are operating budget, capital budget, and cash flow budget.
How does a capital budget differ from an operating budget in public finance?
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.
Explain the concept of an operating budget in public finance.
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.
