WHAT IS Z.B.B. ZERO BASED BUDGET?

Answer Posted / rajam

Zero-based budgeting is a technique of planning and
decision-making which reverses the working process of
traditional budgeting. In traditional incremental
budgeting, departmental managers justify only increases
over the previous year budget and what has been already
spent is automatically sanctioned. No reference is made to
the previous level of expenditure. By contrast, in zero-
based budgeting, every department function is reviewed
comprehensively and all expenditures must be approved,
rather than only increases.[1] Zero-based budgeting
requires the budget request be justified in complete detail
by each division manager starting from the zero-base. The
zero-base is indifferent to whether the total budget is
increasing or decreasing.

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