Consider the following features of a budgeting system: 1. Requires every program to be justified from scratch periodically 2. Ignores previous year’s budget allocations while preparing the budget 3. Encourages re-evaluation and termination of obsolete programs Which of the above features are associated with Zero-Base Budgeting (ZBB)? |ForumIAS

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: D

Notes:

Explanation:

In ZBB, each program must be re-justified during every budgeting cycle—nothing is assumed to continue automatically.
ZBB does not carry forward past budgets. It starts from zero and allocates funds only after fresh evaluation.
One of the main purposes of ZBB is to identify unnecessary or ineffective programs and eliminate or reduce funding for them.

Source- TMH Indian Economy by Ramesh Singh

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