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A statement of the financial position of government during its fiscal year based on estimates of anticipated tax revenues and expenditures. Is fiscal budgeting.
Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, are expected to generate cash flows over several years. The decision to accept or reject a Capital Budgeting project depends on an analysis of the cash flows generated by the project and its cost. The following three Capital Budgeting decision rules will be presented:
Different sources
A fiscal year is the period which is an organization/government devotes for the purpose of accounting and calculation of taxes. The government then determines its financial position on the basis of estimated tax revenue and the expenditures to be incurred. The statement this financial position of the government is referred to as fiscal budgeting.
A business plans to invest in a project which yields more return from its given capital. Various projects are assessed with their cash inflow and outflow and the one that assures maximum return is selected to be carried forward. This is referred to as Capital budgeting.
In simple language Capital budgeting deals with proper planning and the way resources should be utilized and Fiscal budgeting is limited to one financial year as to how the money available and money coming through expected taxes should be utilized. However this is only a layman's view but not with an economist's point of view.
It has been very well explained by the others, I would like to add that Fiscal budget of a country shows the economic strength of the country depending on how it gets distributed...
