Budgeting which aims to distinguish the programmes with the least and low priority and replace them with new activities. Placing new programmes on an equal footing with existing programmes means all proposals for the new budget must compete with each other for priority. Money released by the discovery of certain obsolete programmes could mean either an overall decrease of funds for these sectors or a more rapid expansion of the higher priority programmes.
Zero-based budgeting required every agency to make all its budgeting decisions as if they were completely new decisions, in other words, as if the agency were starting each year with a clean slate and an amount of money. In complete contrast to incremental budgets, zero-based budget systems assume a zero base at the beginning of each budget cycle (Fölscher, 2007: 122).