Difference Between Capital & Operating Budget

What is the difference between the
Capital Budget and Operating Budget?

The difference between a Capital budget and an Operating budget is to differentiate how services are paid. Think of it like Capital budgets focus on big, one-time investment costs and are usually long-term, whereas an Operating budget focuses on budgeting for the day-to-day costs. For example, a Capital cost would include a renovation of a big downtown park. An Operating cost would be the annual staffing of that park.

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