Zero Based Budgeting

Background Paper 79-6
ZERO-BASE BUDGETING

ZERO-BASE BUDGETING
I
Introduction
ZBB can be a benefaction in Sbme organizations where there
is the desire to make the system,work, a willingness
to spend the infallible time and effort. It can be
a complete boondoggle for managers who truly dont
want the process to work, who routinely claim that
the world goes to glare if their programs are reduced
or if they dont get their total funding request, and
who dont realize the will to take a hard look at their
operations. It can certainly be a bOondoggle for
politicians who entail it sounds like a nice consideration to
fool the mickle with, and then keep consumption as usual.*
Zero-base budgeting is a term which has caught the imagination of
many politicians and government administrators who are interested
in establishing good budget analysis techniques to
deal with the public mandate, expressed by recent tax and
expenditure initiatives, that government be take in a more(prenominal)
efficient, economical and accountable manner. There is tremendous
force on state governments to reduce tax levels, or at
least, to adjust a cap on future increases. As revenues become
more limited, it will be necessary for legislatures to make
difficult choices about the levels and kinds of government
serve which should be provided.



Some believe that the
zero-base budgeting technique can friend to ensure that such
choices are made in an informed and acute basis.
Governmental budgeting reform has evolved through several
stages which have been sequentially interested with: the
control of spending to guard against administrative abuses;
the efficient surgery of work and prescribed activities;
and planning, popularly known in single form as PlanningProgramming-
Budgeting System (PPBS). According to budget
experts, the emphasis of budgeting is fracture from mere
justification, through such techniques as line-item review,
to more in-depth analysis of spending priorities based on the
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