Which budget is specifically estimated for new projects and facilities?

The capital budget is specifically designed for estimating the costs associated with new projects and facilities. This type of budget focuses on long-term investments, such as the acquisition or construction of physical assets, including buildings, machinery, and technology. The capital budget ensures that an organization can allocate sufficient resources for projects that typically require significant up-front expenditures and that have a long-term financial impact.

By evaluating potential capital projects, organizations can make informed decisions about where to invest their resources for growth and development. This budget helps prioritize which projects align with strategic goals and how they will be financed, whether through internal funds, loans, or other means. Proper management of the capital budget is crucial, as it supports the overall financial health and operational efficiency of an organization.