What is Zero based budget

  • It is a method of budgeting in which all expenses are justified for each new period.
  • The process of zero-based budgeting starts from a “zero base,” and every function within an organisation is analysed for its needs and costs.
  • In simple terms the every year budget is done like it was done for the first time
  • In India zero based budget was first introduced in Department of science and technology in 1983.
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