Which feature characterizes Line-Item Budget compared to other formats?

• A. Departmental outlays are grouped by items with one item per line; weak on policy focus
• B. Programs are evaluated by outcomes
• C. Budgets are built from zero based on packages
• D. Budgets are used only for capital projects

Answer: (A)

Line-item budgeting focuses on listing every cost as a separate line item, typically grouped by department, with amounts attached to each item (salaries, supplies, travel, etc.). This structure makes it easy to see and control individual expenditures, but it offers little connection to policy goals or program outcomes, which is why it’s described as weak on policy focus. Other budgeting approaches shift emphasis toward how resources achieve results—program or performance budgeting ties money to outcomes—while zero-based budgeting starts from a clean slate and justifies each package from zero. Budgeting isn’t limited to capital projects; line-item formats can cover operating expenses as well, but capital-specific budgeting would be handled separately.