n IMFO : Official Journal of the Institute of Municipal Finance Officers - Capital expenditure by the public sector institutions

Volume 11, Issue 2
  • ISSN : 1607-520X



Capital expenditure refers to any expenditure incurred in or incidental to the acquisition or improvement of land, buildings, engineering structures and machinery and equipment. The expenditure normally confers a lasting benefit and results in the acquisition of, or extends the life period of, a fixed asset. Capital expenditure includes spending on vehicles, office furniture and equipment, but excludes minor items that are generally regarded as being expendable even though in some instances their useful lives may extend beyond one year. Military expenditure (e.g. ships and aircraft) are now treated as fixed assets consistent with the UN System of National Accounts 2008 and the 2001 IMF's government Financial Statistics. Previously, these weapons were treated as current assets (UN System of National Accounts 1993).

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