A major weakness of purely incremental budgeting is that:

Type: MCQ • Marks: 1

A. It prevents any comparison with past expenditure

B. It makes budget preparation impossible

C. It requires complete re-evaluation every year

D. It may institutionalise inefficient historical allocations

Explanation

Incremental budgeting typically starts from previous allocations, which can perpetuate inefficient programmes.

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UPSC Principal & Vice Principal Management Finance Administration

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