The Role of Capital Budgeting Tools in Enhancing the Efficiency of Investment Decision-Making in the Public Sector

The significance of capital budgeting stems from the critical information it provides. Decision-making in general, and investment decisions in particular, serve as the starting point for implementing plans and tasks related to economic units. These decisions inherently involve risks and uncertainties. This research aims to elucidate the role of tools utilized in capital budgeting in providing information that aids in risk reduction and clarifies available alternatives, such as private sector involvement. Furthermore, it examines the economic feasibility of investment decision-making in the public sector, where competing priorities must be balanced against the limited resources allocated to public sector units.