A number of terms are used interchangeably to refer to capital budgeting in public sector, e.g. public work planning, capital improvement planning, capital facility planning or capital outlay planning. Capital Budget in public sector refer to the legislative plan for proposed capital outlay and the means of financing them for the coming fiscal period. The capital planning and programming role of the chief executive guides the capital budgeting and programming process and makes recommendations to the legislature.
The guidelines for preparing and submitting the capital plan are determined by parliament which establishes the time frame for the program, project or activities, the extent of the citizen participation and the administrative responsibilities for the capital planning process. The authority to analyse the financial implication and impact of the capital program on the operating budget and to make recommendation on the financing approaches to assign to the finance department (Ministry of Finance) where a planning commission exists.