Which budgeting approach requires departments to submit detailed requests for additional funding beyond agreed escalation factors?

The modified zero-base approach is a budgeting method that requires departments to justify their funding requests from scratch for each new budget period, rather than simply adjusting previous budgets based on fixed escalation factors. Under this approach, every request for funding is evaluated and assessed based on its necessity and alignment with organizational goals, rather than relying on previous budget levels as a baseline.

This process encourages departments to propose detailed justifications and analysis for their funding needs, which can lead to more efficient allocation of resources. By requiring detailed requests for additional funding, this approach ensures that all expenditures are critically assessed and that departments are held accountable for the resources they are requesting, promoting a culture of financial responsibility.

The other budgeting methods typically do not require such an exhaustive justification of every expense. Incremental budgeting usually adjusts prior budgets based on predetermined factors without the need for justifying all expenses. Program budgeting focuses on funding specific programs rather than scrutinizing every budget item. Activity-based budgeting aims at analyzing costs based on activities but still might not demand a full justification of funding needs as seen in the modified zero-base approach.