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From the book website for Economics Principles in Action by O'sullivan::

States have two budgets: an operating budget and a capital budget.

But from Wikipedia:

A budget is generally a list of all planned expenses and revenues.

I wonder if a budget means expenses only in the first link?

Is a budget made up of expenses only, or is revenue included as well?

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up vote 11 down vote accepted

Budget means both expenses and revenue. In quite a few cases, say personal finance, typically one refers to budget more from expenses point of view as the revenue is typically fixed/known [mostly salary].

The Operating budget and capital budget are laid out separately as Operating budget gives out day to day expenses that are typically essential, employee salaries, routine maintenance of infrastructure etc. The revenue is also tied in to match this. These are done within the same year.

Where as capital budget is to build new infrastructure say a new bridge or other major expense that are done over period of years. The revenues to this are typically tied up differently and can even be linked to getting more funding from other agencies or loans.

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