What is the term for a budget that highlights spending plans for major asset purchases?

The term that refers to a budget highlighting spending plans for major asset purchases is known as a capital budget. This type of budget is specifically designed to plan for significant investments in long-term assets, such as buildings, equipment, and infrastructure. The capital budget outlines how funds will be allocated for these large expenditures, which typically require extensive planning and justification due to their impact on the future financial stability of an organization.

The capital budget plays a crucial role in strategic planning because it not only addresses current financial needs but also anticipates future growth and development requirements. It often involves detailed analysis and prioritization of projects based on their expected return on investment, alignment with organizational goals, and overall impact on operational capabilities.

In contrast, the operating budget focuses on the day-to-day expenses and revenue necessary to run the organization's regular operations, while the compliance budget pertains to funds required to meet regulatory requirements. The revenue budget projects income based on anticipated sales or service provision and does not typically address asset acquisition.