Question

The term 'Zero Based Budgeting' refers to

• A. A specified sum of money authorised by the legislature for a specific period of time
• B. To ensure that every rupee spent is result oriented
• C. A statutorily mandated form of reimbursement or up-front payment for state expenditures
• D. A cost item for which payment is made by one state agency to another
• E. A shortfall in an existing appropriation, or an additional amount needed to accomplish a new or expanded purpose

Answer 1

The correct option is B To ensure that every rupee spent is result oriented

Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs.