Table of contents
Introduction
Responsible fiscal management
The government's fiscal strategy
Fixed nominal baselines
Operating allowance
Capital allowance
Forecast changes and in-year revisions
Contingencies and between-budget spending

Capital allowance

Similar to the operating allowance, the capital allowance is set ahead of a Budget and describes the new funding available for capital projects over and above what is already in departmental baselines.

Unlike the operating allowance which is cumulative over Budgets, the capital allowance is not. The net impact of an agreed initiative on net debt over the next 10 years is counted against the capital allowance in the Budget in which the funding is allocated.