Zero Based Budgeting (ZBB) is a financial management approach that requires every expense to be justified for each new period, rather than simply relying on the previous year’s budget. This method shifts the focus from historical spending patterns to the actual needs and priorities of the present. In ZBB, all expenses must be analyzed and
approved from a “zero base,” meaning that each department or category starts from a clean slate. This allows individuals and organizations to allocate resources more effectively by emphasizing what is truly necessary.