The state government, taking an innovative initiative of budget preparation, has given instructions to prepare the budget estimates for the financial year 2025-26 on the basis of zero base budgeting process. The departments have been asked to evaluate and analyze all the currently running schemes / new schemes minutely.
What is zero based budget?
In zero based budget, budget estimates are started from zero. In zero based budget, no importance is given to the expenditure related data of previous years. In this system, work is started on the basis that the budget for the next period is zero.The administrative department will have to re-review the complete scheme-wise calculation of the programs and activities going on in the department, so that the calculation of the continuous utility of all the schemes prevalent in the department can be accurately assessed. Therefore, the department will have to make it clear in its budget proposal that along with the reference of the expenditure (appropriation) of the previous years, what is the basis of calculation of the budget estimate being proposed. This will enable the reallocation of resources by focusing on the systematic review and justification of the funding and performance levels of the current schemes/programs or activities.
Under the zero base budgeting process, the department will be able to identify such schemes which have lost their utility at present and which can be ended. Apart from this, the merger of schemes of similar purpose prevalent in the department can also be considered. All the activities of the department should be identified in the currently prevalent schemes, programs or new schemes (if necessary). Along with this, the order of priority of the schemes and programs should also be determined.
