Tamil Nadu primarily follows a traditional line-item budgeting approach. This approach is characterized by a focus on inputs, such as personnel, equipment, and supplies. It is also characterized by a focus on control, with budgets being used to ensure that spending does not exceed authorized levels.
Zero-based budgeting is a budgeting approach in which all expenses are justified each year, as if the program or activity were being started from scratch. This approach is designed to force managers to carefully consider the costs and benefits of all programs and activities.
Performance-based budgeting is a budgeting approach in which budgets are linked to performance goals. This approach is designed to improve efficiency and effectiveness by focusing on results rather than inputs.
Outcome-based budgeting is a budgeting approach in which budgets are linked to outcomes, or the ultimate goals of government programs. This approach is designed to improve accountability by focusing on the results of government programs.
Traditional line-item budgeting is the oldest and most common budgeting approach. It is characterized by a focus on inputs, such as personnel, equipment, and supplies. It is also characterized by a focus on control, with budgets being used to ensure that spending does not exceed authorized levels.
Traditional line-item budgeting has several advantages. It is relatively easy to understand and implement. It provides a clear picture of how government resources are being used. And it can be used to control spending.
However, traditional line-item budgeting also has several disadvantages. It can be inflexible, making it difficult to respond to changes in priorities or circumstances. It can also be inefficient, as it can lead to duplication of effort and waste. And it can be difficult to measure the results of government programs, making it difficult to hold managers accountable.
In recent years, there has been a trend away from traditional line-item budgeting and towards more performance-based and outcome-based budgeting approaches. These approaches are designed to improve efficiency and effectiveness by focusing on results rather than inputs. However, traditional line-item budgeting remains the most common budgeting approach in use today.