Question : The "Zero-Based Budgeting" approach in the government budget emphasizes:
Option 1: Incremental changes in the budget from the previous year
Option 2: Starting the budgeting process from scratch every year
Option 3: Allocating resources based on historical expenditure patterns
Option 4: Giving priority to capital expenditure over revenue expenditure
Correct Answer: Starting the budgeting process from scratch every year
Solution : The correct answer is (b) Starting the budgeting process from scratch every year.
The "Zero-Based Budgeting" approach in the government budget emphasizes starting the budgeting process from scratch every year. This approach requires government entities to justify and evaluate all budget items and expenses, regardless of whether they have been included in previous budgets.
Under zero-based budgeting, each budget item and program must be justified based on its merits, needs, and expected outcomes. Instead of assuming that previous budget levels are automatically appropriate, this approach requires a thorough examination and justification of every expense.
By starting from zero and evaluating each budget item, zero-based budgeting aims to identify and eliminate unnecessary expenditures, prioritize resources based on current needs, and ensure that each budget item receives adequate scrutiny.
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