Which are major categories of capital expenditures?

Major categories of capital expenditures include long-term investments that a government or organization makes in physical assets. These expenditures are typically aimed at creating, upgrading, or maintaining the infrastructure necessary for operational purposes.

The focus is on major items that provide value over several years, such as land, buildings, and equipment. These assets are vital for carrying out governmental functions and delivering services to the public. They are expected to enhance the efficiency or functionality of various projects or initiatives in the long run.

In contrast, employee salaries and utility costs are typically categorized as operational expenditures since they are part of the everyday costs incurred to run the organization. Training programs and community outreach initiatives, while important, also fall outside the scope of capital expenditures, as they usually involve operational spending aimed at improving workforce skills or community engagement rather than investing in physical assets. Annual maintenance and repair costs represent ongoing expenditures necessary to keep existing capital assets in working order, rather than new investment in capital itself.