“The budgeting process is an essential component of management control systems and has been an effective system by which management can successfully plan, coordinate, and control. The process involves the creation and implementation of the broad objectives of an organization [ such as reducing the federal debt & deficit, eliminating obsolete, ineffective programs, identifying and eliminating redundancy and waste ] the detailed objectives, and a short-term and long-term financial plan. The philosophy and procedures used to implement zero-base budgeting in industry and government settings are quite similar, only slightly differing with the mechanics to fit the specific needs of each organization.
“The basic process of zero-based budgeting is to justify budget requests every budgeting cycle, regardless of prior period budgets. The following sections address the specifics including the history, implementation, drawbacks and solutions, and behavioral impacts of zero-based budgeting.”In other words, every time a budget is submitted, justification must be made for every program and expenditure. It would force each department director or manager to justify the reason for his or her department’s existence and justify each of the programs of the department or agency.