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Zero-Based Budgeting

Understanding Zero-Based Budgeting

Zero-based budgeting is a budgeting method where every expense must be justified for each new period, starting from a "zero base," rather than using previous budgets as a baseline.

Glossary Terms
Term
Description
Zero-Based Budgeting

Budget planning that requires all expenses to be justified anew.

Budget Justification

Process of explaining the need for every budget item.

Cost Allocation

Assigning expenses to specific departments or projects.

Financial Planning

Strategic management of institutional finances.

Why It Matters

 Zero-based budgeting promotes financial efficiency, accountability, and better resource allocation in higher education institutions.