Developing budgets by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation)and any new programs is called

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Incremental budgeting involves using the previous year's budget as a base and adding an increment to it for inflation and any new programs. This incremental approach is common in government organizations and is often criticized for not thoroughly examining the value or effectiveness of individual programs.

Developing Budgets by Using Last Year's Budget as the Base