What is a zero-based budget?

Zero-based budget refers to a scientific and modern budget method that does not consider the past budget items and income and expenditure levels, is not affected by the previous budget arrangements, and starts from the actual needs, considers the contents of various expenses and their expenditure standards one by one in the budget year, and combines the financial situation to prepare the budget on the basis of comprehensive balance.

Extended data:

1. Budget is a national annual centralized fiscal revenue and expenditure plan approved by legal procedures. It stipulates the source and quantity of national fiscal revenue, the purpose and quantity of fiscal expenditure, and reflects the scope and direction of the whole national policy and government activities.

2. Budget is the most concrete plan that can be used to implement and control economic activities, the concretization of goals, and a powerful tool to guide the development of enterprise activities to predetermined goals.

3. The idea of zero-based budgeting originated from 1952. Wayne Lewis, an American, put forward a new argument about the budget in his article "New Explanation of Budget Theory".

4. Zero-based budgeting is mainly used as a planning tool rather than a control or evaluation tool. Therefore, as a budgeting method for compiling the national annual financial revenue and expenditure plan with legal effect, the zero-based budgeting method has obvious advantages.

References:

Baidu Encyclopedia Budget Baidu Encyclopedia Zero Basic Budget