The impact of applying zero-based budgeting in evaluating the financial performance of government institutions

Abstract

The research examines the concept of Zero-Based Budgeting (ZBB) and its significance as a financial management tool aimed at achieving a precise balance between expenses and revenues. This research aims to study the impact of ZBB on the financial performance evaluation of organizations and highlight the importance of ZBB in various government institutions, showcasing its ability to assess financial performance. To achieve this, a questionnaire form consisting of 20 questions was designed and distributed to the General Manager, (Assistant Manager, Department Heads, and Administrative Unit Heads), specifically targeting experts in the field of budgeting. and the research results were analyzed using statistical methods and regression analysis using the Ordinary Least Squares (OLS) model.The research reached several conclusions, including: ZBB compels organizations to enhance resource efficiency and operate cautiously, encouraging the improvement of internal processes and more efficient resource utilization. ZBB enables organizations to effectively control expenses and revenues, contributing to achieving financial goals accurately and efficiently. The research also provides recommendations, such as urging government institutions in the Kurdistan Region to consider adopting ZBB as a managerial tool and suggesting prioritizing and directing resources towards vital activities and projects that contribute most significantly to achieving financial and strategic objectives.The research reached several conclusions, including: ZBB compels organizations to enhance resource efficiency and operate cautiously, encouraging the improvement of internal processes and more efficient resource utilization. There is a positive and significant effect of ZBB on aforementioned variable by (0.45). The research also provides recommendations, such as urging government institutions in the Kurdistan Region to consider adopting ZBB as a managerial tool and suggesting prioritizing and directing resources towards vital activities and projects that contribute most significantly to achieving financial and strategic objectives.