outlay

Outlay is the amount of money spent to purchase goods, services, or assets, or to undertake a project. In accounting and budgeting, it refers to cash outflows—the actual payments made by an individual or organization.

The term derives from the verb lay out money and has been used in English since at least the 16th century. It is often used interchangeably with expenditure in everyday language, but some financial contexts distinguish cash outlays from non-cash costs.

Outlays are commonly categorized as capital outlays, which cover expenditures on fixed assets such as land, buildings, machinery, and major improvements; and revenue outlays, which cover operating expenses and day-to-day running costs. In contrast to total expenditure, outlays focus on cash payments rather than accrual accounting measures like depreciation or accruals.

In budgeting and financial reporting, outlays are tracked to assess liquidity and cash flow. Forecast outlays reflect planned disbursements, while actual outlays record cash that has been paid. The term is widely used in government, corporate, and nonprofit contexts.

Examples of usage include: a city’s capital outlay budget that includes a new bridge and water-treatment plant, and the annual maintenance outlays that constitute a significant portion of the operating budget.