zero-based budgeting

zero-based budgeting definition - finance
A budgeting system that sets all budgets to zero and makes departments or government agencies justify all of their expenditures. Money is then allocated to the various depart-ments or agencies based on what is currently needed, not the previous yearÂ’s budget.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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