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Budget classification based on themes

1. Zero-Based Budget (ZBB) Budget starts from zero. No connection with last year’s expenses. Every activity or expense is reviewed fresh
Amith

1. Zero-Based Budget (ZBB)

✅ Meaning:

  • Budget starts from zero.

  • No connection with last year’s expenses.

  • Every activity or expense is reviewed fresh — whether it is needed or not.

✅ Why Useful?

  • Helps remove unnecessary expenses.

  • Makes sure every rupee is spent for the right purpose.

✅ Example:

Suppose the Education Ministry spent ₹500 crore last year on a literacy program.
In Zero-Based Budgeting, this year:

  • The Ministry will re-examine — Is the program still needed? How effective was it?

  • If not needed, it may get no budget this year.

  • Fresh evaluation happens every year.

2. Outcome Budget

✅ Meaning:

  • Focuses on results (outcomes), not just how much money is spent (outlay).

  • Shows what will be achieved with the money.

✅ Why Useful?

  • Makes the government accountable and transparent.

  • Helps people know how the budget benefits them directly.

✅ Example:

If ₹20,000 crore is allocated for LPG subsidy, the outcome budget will set a target:

  • Distribute LPG to 9 crore households.

  • So, people can check — Did the government achieve this target?

3. Gender Budget

✅ Meaning:

  • Budget is prepared keeping women’s needs in mind.

  • Ensures women get benefits from government schemes.

✅ Why Useful?

  • Helps reduce gender inequality.

  • Supports women in education, employment, health, etc.

✅ Example:

Gender Budget has 2 parts:

  • Part A: Schemes 100% for women

    • Examples: Beti Bachao Beti Padhao, Ujjawala, Mahila Shakti Kendra

  • Part B: Schemes at least 30% for women

    • Examples: Mid-day meal scheme, PM POSHAN

✅ Fact:

  • Introduced in 2005-06 in India.

  • Gender Budget Statement is published every year with the Union Budget.

✅ Quick Recap Table:

Theme What It Does Example
Zero-Based Budget Starts from zero, reviews every expense Recheck literacy program every year before funding
Outcome Budget Focuses on results/targets, not just money ₹20,000 Cr for LPG → 9 crore families get LPG
Gender Budget Ensures women benefit from the budget Beti Bachao Beti Padhao, Mid-day meals for girl children

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