Is Zero Base Budgeting a Reality or a Symbolic Representation of Politics in Public Sector in Sri Lanka?

Abstract

The purpose of the research paper is to examine whether Zero-Base Budgeting (ZBB) implemented by Sri Lanka in 2016 budget is a reality as planned or a symbolic representation of politics. Among other issues, inability to spend allocated funds in line with set budget lines shows the poorness/inadequacy in planning and execution of budgets in Sri Lanka and hence ZBB is argued to be a solution for better planning with reference to identified annual targets based capacities and priorities within a fiscal year, instead of incremental traditional budgeting. Qualitative approach is used and data is collected from a sample of officials who are involved in the budgeting process, namely accountants, directors of budget/accounts and payments, directors planning/ development, and support staff. This study finds that those who prepared ZBB have simply followed guidelines and formats provided by the government treasury to prepare budgets and do not understand what ZBB really means. The objectives of ZBB are unlikely to have been achieved as preparers have not understood the process. Budget planning does not happen by considering capacities and priorities of spending units. The practice of budget preparation has become an institutionalized practice of estimating numbers in the same traditional way but filling up new reporting formats as per national budget guidelines for ZBB. The need of integration of budget planning, review, output and outcome is not well communicated so that it has been perceived as an alienated concept. Operational context is also found to be not conducive for successful implementation of ZBB mainly due to lack of technological setup, required training and guidance given prior to implementation. ZBB is also seen as a tool to cut the budget in terms of allocations instead of bringing about efficiency and effectiveness. The implementation of ZBB in Sri Lanka should have been focused on long term strategic management perspective instead of being hurried/in haste to implement it before the ground is ready for takeoff.