Zero based budgeting

The concept of Zero-Based Budgeting has been around for a long time but it might just be what you need as you sit down to do your company budget for next Financial Year. Normally we’d look at last year’s actuals and roll them forward but that’s simply not going to work anymore!
The idea behind zero-based budgeting is that there is no reason to believe that what happened last year should automatically be seen as a target. Each line item in initially set to zero and needs to be justified in terms of its continued usefulness or necessity.
Traditionally, zero-based budgeting has been used sparingly for items like discretionary expenditure but I think in the current environment, its use might become a lot more widespread! What do you think?