A zero-based budget is a financial planning method in which all expenses must be justified and approved for each new period, regardless of previous budget allocations. This approach requires a thorough evaluation of every expense, starting from a “zero base,” to determine its necessity and effectiveness in achieving organizational goals. Unlike traditional budgeting, which relies on previous year’s budget as a starting point, zero-based budgeting encourages a more strategic and cost-conscious approach to budgeting, allowing for better resource allocation and potential cost savings. This method is commonly used by businesses and organizations to ensure that every dollar spent is aligned with their objectives and priorities, promoting financial discipline and accountability.