zero-based budgeting
Justify every dollar
Zero-based budgeting is a method of budgeting where every expense must be justified from scratch for each new period, rather than basing the budget on previous spending.
Instead of adjusting last year's numbers, you start from zero and build up: Under zero-based budgeting, each department has to defend every dollar it requests.
The approach forces organizations to evaluate whether each expenditure is truly necessary.
- clean slateRecord wiped clear
- cost controlManaging expenses systematically
- fiscal disciplineControlled government spending
- waste reductionDecreasing material for disposal
- cost-benefit analysisSystematic comparison of advantages, disadvantages
strategic planning · justify · expense tracking · capital allocation · from scratch · bottom up approach · department heads · cost center · spending priorities · scrutiny · accountability · project funding · forecasting models · cash flow analysis · proposal · annual · risk management · resources
- budgetingbudgets, school budgets, project budgets, spending plan, financial projections
- Government Reformfiscal reform, government reform, policy reform, regulatory reform, restructuring
- fiscal policydeficit spending, fiscal reform, fiscal deficit, fiscal policy, government spending
- cost accountingcost analysis, cost center, cost centers, cost control, cost accounting
zero-based budgetingincrementalism
Change through small steps
business as usual · path dependence · rubber-stamping · automatic renewal · grandfathering