Zero-base budgeting

Zero-base budgeting (ZBB), annual economic planning that justifies expenditure on actual cost or need rather than on increments of the previous year's budget. ZBB assumes a base of zero dollars and asks managers to prepare outlines showing expected high and low spending levels. Budgeting for the coming year is based on these outlines. Introduced in the 1960s by the electronics manufacturer, Texas Instruments, Incorporated, ZBB is used by government and business as a means of controlling spending.

See also: Sunset laws.