Which budgeting approach emphasizes program goals and may limit adjustments if goals shift?

• A. Line Item Budget
• B. Programming and Planning Budget
• C. Zero Budget
• D. Percentage Budget

Answer: (B)

Programming and Planning Budgeting centers on defining and pursuing program goals. It starts by detailing what each program intends to achieve, then analyzes different ways to accomplish those goals and allocates resources accordingly. Because the budget is built around specific program objectives, resources become tied to those programs, making midcourse shifts harder to implement without reevaluating and re‑justifying the entire plan. This goal‑driven, program-based focus is what gives this approach its tendency to limit adjustments when goals change.

Line-item budgets, by contrast, focus on detailed costs for each line—salary, supplies, equipment—so funds can be moved between line items more readily without reassessing overall program goals. Zero budgeting requires re‑justifying every expenditure from scratch each period, which allows for comprehensive reallocation but not the same emphasis on pursuing defined program outcomes. Percentage budgeting uses fixed percentages, which can constrain responsiveness to shifting goals.