What type of budget focuses on major equipment or building purchases?

The capital budget is specifically designed to focus on long-term investments in major equipment or building purchases. This budget type allocates funds for large, significant expenditures that typically have a lasting impact on an organization’s operations and infrastructure. Capital expenditures can include purchasing new fire engines, constructing new fire stations, or upgrading existing facilities, all of which are essential for improving service delivery and operational readiness.

Operating budgets, on the other hand, are concerned with the day-to-day expenses and revenues of an organization and do not typically cover significant capital investments. Zero-based budgets involve justifying all expenses for each new period from a "zero" base, rather than using the previous period's budget as a starting point, which also doesn’t specifically target major long-term acquisitions. Program budgets are structured around the costs and resources required to deliver specific programs or projects, rather than focusing solely on capital expenditures.

Thus, the capital budget is distinctly aimed at facilitating significant investments that contribute to an organization’s growth and efficiency over time.