What governmental principle does zero-based budgeting challenge?

Zero-based budgeting fundamentally challenges the traditional approach to budgeting that assumes previous budgets are effective and should inherently be continued into the next budgeting cycle. In conventional budgeting practices, agencies often start with the prior year’s budget and make incremental adjustments based on previous expenditures, which can perpetuate outdated or inefficient funding levels. Zero-based budgeting, however, requires that every budget cycle starts from a 'zero base', meaning all expenses must be justified anew each time funding is requested, rather than simply rolling over previous allocations.

This approach encourages a critical review of all programs and expenditures, prompting organizations to allocate resources more efficiently based on current needs and priorities rather than historical practices. By questioning the necessity and effectiveness of previously funded programs, zero-based budgeting aims to enhance accountability and resource allocation in governmental financial management.