Question

Which type of budgeting is considered to be best to control proliferation of government schemes and programmes

• A. Outcome budgeting
• B. Line item budgeting
• C. Zero based budgeting
• D. Performance budgeting

Answer 1

The correct option is C

Zero based budgeting

Zero-based budgeting is a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period regardless of whether the budget is higher or lower than the previous one.