Zero-Based Budgeting as the Method of Public Programming: Application Possibility in the Modern Social and Economic Conditions

Anatoly Alekseevich Likhtin () and Evgenia Andreevna Kutergina ()

Administrative Consulting, issue 10

Abstract: The current approach to formation and realization of public programs that exist in Russia is ineffective. It is not flexible to changing environment. There is urgent issue about the methods of public programming. The searching of more effective methods of financial programming is of current importance in Russia. One of the potential possibilities is the zero-based budgeting (ZBB) approach to public programming. This method serves to reduce effectively budgetary allocations on public programs without loss of quantity and quality of services provided. Moreover, ZBB identifies the causes of financial losses. There is a gap in the analysis of ZBB in national literature. The purpose of this study is to overlap this gap. The successful experience of the development and implementation of the new ZBB in Georgia is presented. The experience of Georgia is more indicative for Russia than methods of public programming from USA due to the similar level of the economy development. Authors argue that difficult economic situation in Russia is the incentive to implement new methods of public programming. However currently Russian economy has not enough resources to reconsider methods of public programming and implement new ones in particular zero-based budgeting.

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