Budgets and budgeting

Incremental budgeting – an approach to budgeting where next year’s budget is based on this year’s budget adjusted for pay and price inflation and changes in policies. Medium-term financial strategy (MTFS) – an outline of the revenue and capital budgets for a three to five-year period. Programme budgeting – an approach to budgeting where multi-year programmes of activities are developed for meeting the PBE’s objectives and budgets are prepared for each activity. Zero-based budgeting (ZBB) – an approach to budgeting where each item is estimated anew each year, rather than by reference to its value in the previous budget.