Zero-Based Budgeting | Vibepedia

Zero-based budgeting is a budgeting method that requires all expenses to be justified and approved in each new budget period. The goal is to assess the efficient use of resources by determining if services can be provided at a lower cost. While used in both government and the private sector, the effectiveness of zero-based budgeting is debated. With its focus on cost savings and resource optimization, zero-based budgeting has been reportedly adopted by various organizations. However, critics argue that the approach can be time-consuming and may not always lead to significant cost reductions.