Zero-Based Budgeting

Zero-Based BudgetingThe practice of budgeting based on justification of expenses for each accounting period, rather than historic spending, is called 'Zero-Based Budgeting'. It was developed in the US in the 1960's and then adopted for use in government in the 1970's.

The advantage of this form of budgeting is that it draws focus to current spending and can easier mitigate needless expense. It also involves current employees/personnel in the process, accordingly utilising up-to-date experience and methodology.