What type of budget covers big-ticket items meant to support government services over multiple years?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

The correct choice is indeed the capital budget. This type of budget focuses on big-ticket items, such as infrastructure projects, buildings, and major equipment purchases, which require substantial financial investment and are intended to support ongoing government services over an extended period.

The capital budget is distinct from the operating budget, which covers the day-to-day expenses necessary for running government functions, such as salaries, utilities, and supplies. Additionally, the cash-flow budget manages the timing of cash inflows and outflows over a shorter, often monthly or quarterly, period but does not specifically address long-term capital investments. The program budget allocates resources based on specific programs and their goals but is more focused on the objectives and outputs rather than the long-term capital expenditures intended to support government services.

Therefore, the capital budget's emphasis on longer-term projects and investments makes it the appropriate response to the question regarding funding for significant items that aid in supporting government functions over multiple years.

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