Budget 2023 | What is Capital Budget?

Come February 1, central Finance Minister Nirmala Sitharaman is all set to present the Union Budget even as the country looks to make sizeable recovery from the perils of the economic slowdown due to the Covid-19 pandemic. Unlike last year when the nation was still in the throes of a third wave of coronavirus, the revival of the economy is something experts are looking forward to this time.

From the expectations by the middle-class such as tax exemption to job creations and healthcare to sectors such as real-estate and MSMEs, everyone has their sights set on the Budget presentation. While we wait for the same, let's take a look at some of the terms that will help us to understand the Union Budget and its allocations better.

One important term that often comes up in discussions over Budget is Capital Budget.

What is Capital Budget?

The capital budget primarily deals with capital receipts and capital payments.

Capital receipts include money a government gets through treasury bills, market loans, loans received from a foreign government, disinvestment receipts, or debt paid by union territories or state governments and other parties.

On the other side, capital payments comprise expenditures on the acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by the central government to state and Union Territories, government companies and corporations, among others.