How an expenditure is financed (using current revenues vs. some form of longer-term financing) is one of the reasons state and local governments, as opposed to the federal government, separate capital expenditures from current expenditures in the budget process.

Question

Quizplus · Accepted Answer

State and local governments separate capital and current expenditures to manage their budgets effectively, as they often rely on different financing methods, unlike the federal government which can run deficits.

How an Expenditure Is Financed (Using Current Revenues Vs