Question
Write a note on Zero Based Budgeting.
Answer :
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Zero Based Budgeting (ZBB) is a budgeting approach in which every expenditure must be justified from the beginning of each budget cycle, regardless of previous allocations. Unlike the traditional incremental budgeting system, which assumes that existing programs and expenditures will continue with minor adjustments, ZBB starts from a "zero base," requiring all departments and agencies to justify their proposed expenditures in terms of costs, benefits, and priorities. The concept of Zero Based Budgeting was developed by Peter A. Pyhrr in the 1970s and was later adopted in both private and public sectors. In public administration, ZBB aims to improve the efficiency and effectiveness of resource allocation by ensuring that government funds are directed towards programmes that yield maximum public benefit. The process of ZBB
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