Zero-Based Budgeting differs fundamentally from incremental budgeting

Type: MCQ • Marks: 1

Zero-Based Budgeting differs fundamentally from incremental budgeting because it:

A. Assumes every existing programme deserves automatic continuation

B. Applies only to taxation

C. Eliminates all expenditure

D. Requires activities to be justified without treating the previous year's allocation as an unquestioned baseline

Explanation

ZBB challenges historical spending patterns and requires justification of expenditure priorities.

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UPSC Principal & Vice Principal Management Finance Administration

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Zero-Based Budgeting differs fundamentally from incremental budgeting because it: