Open AccessCapital Expenditure, Recurring Expenditure, and Development Planning Comments on Dr. Huda's Address
Author(s) -
M. Akhlaqur Rahman
Publication year - 1968
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v8i3pp.354-364
Subject(s) - capital expenditure , capital (architecture) , financial plan , economics , government expenditure , finance , business , government (linguistics) , operations management , actuarial science , macroeconomics , linguistics , philosophy , archaeology , public finance , history
The purpose of this note is to discuss the nature of theproblems created -by the "impact of the capital expenditure on thesubsequent liabilities of re¬curring expenditure"1 of the government andto suggest certain remedies for either eliminating or reducing suchproblems. The problem, as stated below, basically relates to thefinancial planning of development projects. The installation of adevelopment project involves capital costs. The running of the project,after its completion, involves the costs of operation and maintenance,i.e., the recurring costs. The purpose of * financial planning is tomaximize the surplus of returns over the costs of opera¬tion, includingthe maintenance and replacement costs.