Capital budgeting in the health sector : an evaluation

Abstract

One of the key decisions that have to be taken by health authorities concerns spending on capital assets. Many capital projects are very expensive to undertake and decisions about them cannot easily be reversed. Furthermore, much of the additional revenue expenditure of the health sector is generated by capital schemes. Consequently, decisions about capital expenditure ultimately influence to a great degree the revenue expenditure of the sector. Any assistance that can be given by capital budgeting toward the making of such decisions will clearly be of benefit.