    [Analytical Perspectives]
    [Special Analyses and Presentations]
    [6. Federal Investment Spending and Capital Budgeting]
    [From the U.S. Government Printing Office, www.gpo.gov]

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                       SPECIAL ANALYSES AND PRESENTATIONS

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              6.  FEDERAL INVESTMENT SPENDING AND CAPITAL BUDGETING

      Investment spending is spending that yields long-term benefits. Its
    purpose may be to improve the efficiency of internal Federal agency
    operations or to increase the Nation's overall stock of capital for
    economic growth. The spending can be direct Federal spending or grants
    to State and local governments. It can be for physical capital, which
    yields a stream of services over a period of years, or for research and
    development or education and training, which are intangible but also
    increase income in the future or provide other long-term benefits.
      Most presentations in the Federal budget combine investment spending
    with spending for current use. This chapter focuses solely on Federal
    and federally financed investment. These investments are discussed in
    the following sections: