Explain which side of the debate you would support and why

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Most private-sector organizations as well as state governments develop separate budgets for capital expenditures. At present, the federal budget makes no distinction between capital outlays and operating expenses. There are some who argue that the lack of a federal capital budget encourages bad decisions. Since a $20 million outlay for a building is treated in the same way as $20 million spent on operating expenses, there may be a bias toward leasing rather than buying a building. Furthermore, the amount spent on capital goods versus consumption goods does have a bearing on economic growth. Yet the federal government continues to follow a unified budgeting approach.

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Search the Internet to obtain the pros and cons of federal capital budgeting. Prepare a brief summary of the various arguments that favor the establishment of a federal capital budget. Additionally, prepare a brief summary of the arguments that favor the continuation of the current unified approach. Explain which side of the debate you would support and why.

Reference no: EM13947787

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