Which budgeting approach links budgeting with planning and evaluation at the program level?

• A. Program Budgeting
• B. Zero-Based Budgeting
• C. Line-Item Budget
• D. Budget Document

Answer: (A)

Program budgeting ties budgeting directly to planning and evaluation by organizing resources around specific programs that deliver defined services or outcomes. In this approach, each program is identified with its goals, intended results, and the costs required to achieve them. Budget decisions are made by assessing how much each program costs and what outcomes or outputs it delivers, and these results are used to inform future planning and funding. This creates a clear link between what is planned, what is funded, and what is achieved, making the budget a tool for accountability and strategic decision-making.

Zero-based budgeting, by contrast, focuses on building every expenditure from zero each period and justifying costs anew, rather than linking funds to ongoing program goals and evaluations. A line-item budget centers on inputs and categories (salaries, supplies) rather than programs or outcomes. A budget document is simply the presentation of the budget, not a budgeting approach itself.