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A Review of Capital Budgeting Practices

26 Pages Posted: 16 Jul 2008  

Davina Jacobs

International Monetary Fund (IMF)

Date Written: July 2008


A key challenge in government budgeting is to define an appropriate balance between current and capital expenditures. Budgeting for government capital investment also remains not well-integrated into the formal budget preparation process in many countries. This paper aims to provide an overview of past and current budgeting practices for public investment. The study will also provide a comparison between the budget practices between low-income countries and developed countries and make a series of recommendations for how to ensure efficient integration of capital planning and budget management in low-income countries.

Keywords: Government expenditures, Budgetary policy, National budgets, Public investment, Low-income developing countries

Suggested Citation

Jacobs, Davina, A Review of Capital Budgeting Practices (July 2008). IMF Working Papers, Vol. , pp. 1-24, 2008. Available at SSRN:

Davina Jacobs (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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