Elon Musk's DOGE Is Zero-Basing the Federal Government

What is DOGE really doing—and why is it so controversial?  The answer lies in an esoteric if straightforward concept that began in the world of  budgeting:  Zero-basing.

As a general rule, most organizations, businesses, agencies, and even households building budgets start by asking themselves a simple question: What did we spend last year?  To answer, they compile a list of expense categories and the amounts spent in each one.  Next, they look ahead to the coming year to see which categories will require a bump up and where they can cut.  Finally, they look at projected revenues to see whether they can expect to cover planned spending.

In such a process, last year’s budget serves as the “baseline” for this year’s budget.

 

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