Treasury adopts zero-based budgeting to curb unrealistic fiscal planning, says CS Mbadi

Treasury CS John Mbadi reading the Budget Policy Statement in Parliament on June 12, 2025./SCREENGRAB

The government has adopted zero-based budgeting and revised its revenue projections to align with actual trends, Treasury CS John Mbadi has said.

Mbadi said the move aimed at addressing longstanding public concerns over unrealistic national budgets.

Speaking during the budget reading for the financial year 2025/26 in Parliament on Thursday June 12, CS Mbadi acknowledged that past budgets had drawn criticism for being overly ambitious and out of touch with economic realities.

“There has been public perception and concern in the past that our budgets tend to be unrealistic,” said Mbadi.

“To address these concerns, we adopted the zero-based budgeting approach and reduced revenue projections to reflect historical and current trends.”

Zero-based budgeting requires government departments to justify all expenses for each new fiscal year, rather than basing budgets on previous allocations.

The shift is intended to enhance transparency, improve spending efficiency, and ensure that public funds are directed toward priority areas.

Mbadi said the revised approach is part of broader fiscal reforms designed to improve budget credibility, reduce deficits, and promote responsible resource management.

The Treasury is expected to outline the details of the new budgeting framework in the upcoming presentation of the 2025/2026 national budget.