zero-base budgeting

Zero-base budgeting is a government finance approach where every item in a budget is justified on the basis of its cost or need, rather than simply continuing previous spending levels. This method, first used in 1962, contrasts with traditional budgeting, which often focuses on incremental changes to existing expenditures.12

Program budgeting, a related concept, classifies expenditures by the outputs they achieve rather than by administrative departments. This aims to apply economic principles of choice to public decision-making, forcing explicit choices among alternative courses of action.2

Despite attempts to implement zero-base budgeting, such as by the Jimmy Carter administration in the U.S., its widespread impact has been limited due to institutional inertia and vested interests.2