The zero-based budgeting system is budgeting system that require every item of expenditure to be justified as if particular activity or program is taking off the first time.
The following are stages involved in zero based budgeting system
Identification of decision unit/tasks and formulating operational plans
Analyzing/ evaluating the whole budget into decision packages based on decision units/tasks to which cost are assigned
Ranking in priority the decision packages covering the activities, both new and existing in competitive manner
Determination of cut off point , to choose the packages which can be included and those to be rejected, and
Prioritization/selection of the packages, to highlight the ones which fits in with the available resources