Zero base budgeting ZBB involves Planning in view that the nation is industrially backward The assum...........

Economic Affairs Others

Download Solution PDF

Zero-base budgeting (ZBB) involves

Planning in view that the nation is industrially backward
The assumption that there are little or no natural resources to be leveraged
Budgeting keeping in mind the GDP at constant prices at factor cost

Select the correct answer using the codes below.

1 only

2 and 3 only

2 only

None of the above

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

Zero-base budgeting is the allocation of resources to agencies based on periodic re- evaluation by those agencies of the need for all the programs for which they are responsible, justifying the continuance or termination of each program in the agency budget proposal. In other words, an agency reassesses what it is doing from top to bottom from a hypothetical zero base. There are three special features of this budgeting which distinguishes it from the traditional budgeting.

Should we spend?

How much should we spend?

Where should we spend?

In India, it is believed to be in practice since 1997–99. We cannot say that India is a success in ZBB, but many of the profit-fetching PSUs have been able to use it successfully and optimize their profits