1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

Zero-base Budgeting


Smiling woman with crossed arms and laptop

Building a Budget from Scratch Can Save Money

iStockphoto / Jacob Wackerhausen


Zero-base budgeting does not use the previous year's budget or expenses in setting a new budget, since the company’s circumstances and finances may have changed. When building a budget from a zero base, every expense must be justified.

This differs from only having to explain the amounts requested in excess of the funding received during the prior year or quarter. Zero-base budgeting helps you control spending and expenses because you build your budget from zero rather than building your budget on top of what was spent during the prior period funded.

Human Resource Management Glossary Index:

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Glossary Resources

Submit a word for the Glossary | Complete Glossary


  1. About.com
  2. Money
  3. Human Resources
  4. HR Management: FAQs/Basics
  5. Human Resources, Employment, and Management Glossary
  6. Glossary - Z
  7. Zero-base Budgeting

©2014 About.com. All rights reserved.