B. Zero Bases Budgeting Methodology
- Objectives:
At the end of this learning Unit the participants will be able to -- List the steps to be followed to prepare Zero Base Budgeting.
- Identify decision units and decision packages
- Identify and remove redundant expenditure
- Rationalize expenditure by removing duplicating expenditure
- Design decision packages
- Re-examine the necessity of continuance of on-going expenditure
- Determine different levels of funding
- Use ranking methods for prioritization of decision packages
Following are the sub units of the Learning Unit 5 to achieve the above objectives.Sl.No. Name of the Sub Unit
- Meaning and historical background of
Zero Base Budgeting - Zero Base Budgeting framework of
methodology - Determining of the Decision unit level
- Designing of decision packages
- Different levels of funding
- Ranking of decision packages
- Instructions to Faculty:
2.1 Make a brief presentation to explain the meaning of Zero base Budgeting
and its historical background. Give instances of successful applications, as
also failures in obtaining results in India and abroad.2.2 Ask each participant to identify a decision unit and the hierarchy of
decision units in respect of their own organization. Participants could be
given five minutes time to jot down points in their own notebooks, which
could be consolidated in plenary. During consolidation explain the
importance of determining the right size of a decision unit.2.3 Involve participants in the identification of the following with reference to
his/her own organization. The faculty may trigger off reflection and
analysis among the participants by giving an example, and then inviting
participants to give examples from their own experience.v Redundant items of expenditure