Zero based budgeting is a strategic financial planning approach where all expenses must be justified and approved for each new period, regardless of previous budget allocations. This method requires a thorough analysis of all expenses and aims to eliminate unnecessary or redundant costs, resulting in a more efficient and cost-effective budget. Unlike traditional budgeting, which uses previous budgets as a baseline, zero based budgeting starts from a “zero base” and requires every expense to be justified, making it a more rigorous and transparent budgeting process. This approach is often used by businesses and organizations to optimize their spending and prioritize their resources towards achieving their goals and objectives.