BENEFITS OF CAPITAL BUDGETING IN PUBLIC SECTOR
A number of important results flow from an effective plan and executed capital improvement program. These include:
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It forces communities to examine their goals and needs capabilities.
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It promotes greater efficiency in the use of tax resources.
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It provides an important guide in and the growth and development of the community.
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It encourages government or public organizations to improve their administrative systems.
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It is an important means for promoting Regional Corporation.
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It facilitates and promotes sound financial management.
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It offers an effective way to replace or repair capital facilities.
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It enhances the government or the organization’s opportunity to participate because of the many programs that the government maintain to aid in the planning and construction of infrastructure.