Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India

Zero-based budgeting (ZBB) is a systematic approach to budgeting that starts from a "zero base," aiming to analyze the requirements and costs of each activity. The aim of this article is to explore the application of ZBB as an effective means of budgetary control within the Panchayati Raj institutions in India, with Nigeria serving as an example of its successful implementation. As the cornerstone of decentralized governance, Panchayati Raj plays an important role in implementing rural development programs while ensuring optimal use of resources. However, traditional methods of incremental budgeting often lead to inefficiency, misuse of funds, and lack of accountability. The study delves into the principles of ZBB and its ability to increase financial discipline, prioritize spending, and align budget allocations with development objectives in the rural governance framework. Nigeria's implementation of ZBB highlights its ability to eliminate redundant programs, reallocate resources to critical sectors, and enhance transparency through stakeholder involvement and technological integration. Despite these advantages, ZBB faces challenges such as high time investment, manpower turnover, lack of experienced personnel, administrative complexity, bureaucratic inertia, local political resistance, and resistance to change. While ZBB requires considerable effort in terms of training and stakeholder engagement, it can significantly improve financial management and service delivery in Panchayati Raj institutions. The study concludes by emphasizing the need for capacity building and institutional reforms to achieve sustainable and equitable development in India's villages and offers policy recommendations for integrating ZBB into rural governance systems.

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Publication Details

Journal
Asian Journal of Economics Business and Accounting
Published
2024-12-10
DOI
https://doi.org/10.9734/ajeba/2024/v24i121600
Primary Topic
Urban and Rural Development Challenges
Type
article
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article

Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India

Amar Kumar Chaudhary
Asian Journal of Economics Business and Accounting
Urban and Rural Development Challenges
article

Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India

Amar Kumar Chaudhary
article en

Abstract

Zero-based budgeting (ZBB) is a systematic approach to budgeting that starts from a "zero base," aiming to analyze the requirements and costs of each activity. The aim of this article is to explore the application of ZBB as an effective means of budgetary control within the Panchayati Raj institutions in India, with Nigeria serving as an example of its successful implementation. As the cornerstone of decentralized governance, Panchayati Raj plays an important role in implementing rural development programs while ensuring optimal use of resources. However, traditional methods of incremental budgeting often lead to inefficiency, misuse of funds, and lack of accountability. The study delves into the principles of ZBB and its ability to increase financial discipline, prioritize spending, and align budget allocations with development objectives in the rural governance framework. Nigeria's implementation of ZBB highlights its ability to eliminate redundant programs, reallocate resources to critical sectors, and enhance transparency through stakeholder involvement and technological integration. Despite these advantages, ZBB faces challenges such as high time investment, manpower turnover, lack of experienced personnel, administrative complexity, bureaucratic inertia, local political resistance, and resistance to change. While ZBB requires considerable effort in terms of training and stakeholder engagement, it can significantly improve financial management and service delivery in Panchayati Raj institutions. The study concludes by emphasizing the need for capacity building and institutional reforms to achieve sustainable and equitable development in India's villages and offers policy recommendations for integrating ZBB into rural governance systems.

Asian Journal of Economics Business and AccountingVol. 24(12)
Ranchi University (IN), University College of Commerce & Business Management (IN)
Partnerships for the goals
Openalex Percentile: Top 62%
Urban and Rural Development Challenges
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Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India — Amar Kumar Chaudhary · Asian Journal of Economics Business and Accounting (2024) | TGRS Research Map | TGRS