Question

What is a major difference between an operating budget and a capital budget?

A. In an operating budget, legislation is needed; in a capital budget, no legislation is needed.

B. An operating budget is raised by bonds; a capital budget is raised by taxes.

C. An operating budget consists of small amounts of money; a capital budget consists of large amounts of money.

D. An operating budget is for day-to-day expenses; a capital budget is for investment spending.​

Answer 1

What is the difference between the Operating Budget and the Capital Budget? The Operating Budget and the Capital Budget make up the city's annual budget. The Capital Budget funds major improvements to facilities and infrastructure. It is the first year of needs in the five-year Capital Improvements Program (CIP) Plan.