Under Zero-Based Budgeting (ZBB), which statement is correct?

• A Every programme must justify its entire budget afresh each cycle, starting from zero ✓
• B Each year's budget starts from the previous year's allocation plus an increment
• C Only new programmes are funded while ongoing programmes continue automatically
• D The budget is fixed at zero growth regardless of inflation

Explanation

In zero-based budgeting every activity and programme must be justified completely in each budgeting cycle, beginning from a base of zero, without assuming that last year's funding continues. Option B describes incremental or traditional budgeting, which ZBB was designed to replace. Option C is the opposite of ZBB because ongoing activities receive no automatic continuation, and option D misreads the term zero as referring to growth rate rather than the starting base of justification.

Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.

High-yield for: NEET PGINI-CETNExTFMGEUSMLEPLABMRCP

Written and medically reviewed by the StethoPrep medical team.