Which country first introduced zero-based budgeting?

Question

Question

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SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 10 Aug, 2023 Shift 1)

Answer 1

The correct answer is The US.Key Points

The US first introduced zero-based budgeting in the 1960s.
In the 1960s, ZBB was formally initiated in the Department of Agriculture of the USA and turned out to be more popular in the 1970s.
The Zero-Based Budgeting applicable today was developed at Texas Instruments Inc. in 1969 by Peter Pyhrr.
Zero-based budgeting is a budgeting method in which all expenses must be justified for each new period.
It starts from a "zero base" and every function within an organization is analyzed for its needs and costs.

Additional Information

India did adopt zero-based budgeting in 1987, but it was not the first country to do so.
Germany and the UK have also implemented zero-based budgeting, but again, they were not the first countries to introduce this method.
Zero-based budgeting is often used by businesses and governments to identify areas of inefficiency and to reduce unnecessary expenses.
There are two techniques for tracking expenses: zero-based budgeting and traditional budgeting.
Zero-based budgeting aids managers in addressing a company's lowest costs.