What is Capital Procurement / Expenditure?
General Financial Rules (GFR) 2017 defines Capital Expenditure as 'Significant expenditure incurred with the object of acquiring tangible assets of a permanent nature (for use in the organisation and not for sale in the ordinary course of business) or enhancing the utility of existing assets, shall broadly be defined as Capital expenditure.' Basically it means that any expenditure incurred by the government to say buy a new military vehicle would be classified as Capital Expenditure and the procedure for such a procurement may be different from that required for sustenance of this vehicle (spare parts / maintenance etc) which gets classified as Revenue Expenditure.
The significant document which lays down the procedure for Capital Expenditure is that issued by the Ministry of Defence. This document id called the Defence Acquisition Procedure 2020.
So what would you like to know more about this Expenditure / Procedure - Leave a comment & I would be happy to try & clarify.
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