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Zero Based Budgeting
(redirected from zero-based)

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Zero Based Budgeting
A system of budgeting where each department or division of a company must justify all expenditures and allocations rather than simply increases over the previous fiscal year. That is, the budget is made with every department starting at zero dollars to spend, and each department must demonstrate need for what it wants to receive. Zero-based budgeting is advantageous because it is more detail-oriented than other forms of budgeting; among other things, it makes it easier to detect and eliminate over-inflated budgets. On the other hand, zero-based budgeting is more difficult and time consuming to put together and often has a bias toward departments that directly produce revenue instead of departments like R&D.


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Zero-based budgeting and creating a public debt management office for the implementation of debt management strategies and risk are other key tasks of the department.
Give every dollar of your income a name before the month begins--that's called a zero-based budget.
Byline: Consultants helping with transition say incremental approach will give way to zero-based system Abu Dhabi: The Ministry of Finance will introduce a three-year budget cycle, replacing the current annual plan.
 
 
 
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