Question

Define/describe capital planning/budgeting/allocation in general. What are the goals, aspects,
and phases? When is it done? How often?

Answer 1

Capital planning is an integral part of an agency’s strategic planning process” that provides a blueprint “in order to meet the goals and objectives in the agency’s strategic and annual performance plans.”

In more basic terms, it is the process of budgeting resources for the future of an organization’s long-term plans. The capital planning process is used to determine whether or not an organization’s long-term investments are worth funding through the firm’s “capitalization structure,” also known as basic accounting.

Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

Here are reasons why everyone should create and stick to a budget:

It helps you keep your eye on the prize. ...
It ensures you don't spend money that you don't have.
It leads to a happy retirement.
It helps you prepare for emergencies.
It sheds light on bad spending habits.
It's better than counting sheep.

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt

Allocation : Act of dividing up the scarce resources of the economy to produce different goods and services to meet the needs and wants of society. An authorization to incur expense or obligation up to a specified amount, for a specific purpose, and within a specific period.