Economics · Fiscal Policy
What is the defining characteristic of a Zero-Based Budgeting (ZBB) system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Every item of expenditure must be justified from scratch for each new period✓
- 2The budget total must always equal zero at the end of the fiscal year
- 3It accepts the previous year's base as given and adjusts only for inflation
- 4It allocates funds exclusively to loss-making public enterprises
Correct answer
Every item of expenditure must be justified from scratch for each new period
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