What is Capital Budget?

Capital Budget is comprised of the capital receipts and payments along with transactions in the Public Account. The receipts in this account are basically the loans which have been raised by the government from the Reserve Bank of India via treasury bills, foreign bodies and governments and even the recoveries of loans which have been granted by the Central government to states or administrations of Union Territories. The Capital Payments comprise the capital expenditure on acquiring various kinds of assets like land, buildings, machinery, equipment in addition to various other investments like shares, loans and advances which have been given by the Central government to various States and governments of Union Territories.