Zero Based Budgeting ZBB lays emphasis on 1 Unlimited deficit financing 2 Preparing new budget...........

Economic Affairs Public Finance and Debt Management

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Zero Based Budgeting (ZBB) lays emphasis on:

1. Unlimited deficit financing

2. Preparing new budget right from the scratch

3. Preparing the budget neglecting the history of expenditure

Codes:

1 and 2 only

2 and 3only

1 and 3only

1, 2 and 3

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Explanation:

Zero-based budgeting (ZBB) 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 are 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.ZBB allows top-level strategic goals to be implemented into the budgeting process by tying them to specific functional areas of the organization, where costs can be first grouped, then measured against previous results and current expectations