Capital Budgeting or Capital Busting?

Courtesy : Lakbima NewsBy Dr. Lalithasiri Gunaruwan (The writer is the former General Manager of Railways currently a Senior Lecturer in Economics, University of Colombo)Last week, we considered the importance of focusing on “benefit maximisation” and avoid being deceived by the scale of capital expenditure required, when planning for public investment projects. In fact, the aim should be to minimise the capital input for a pre-determined scale of project benefits in order to achieve maximum