i) Programme-Based Budgeting:
Programme-based budgeting involves preparing budgets based on specific programmes or objectives that an organization plans to achieve over a given period. Each programme has specific line items, detailing revenues and expenditures, allowing for a performance-oriented approach to managing the budget. This method ensures that resources are allocated based on the programmes’ contribution to organizational goals.

(2 marks)

ii) Disadvantages of Line-Item Budgeting:

1. Difficult to Assess Performance: Line-item budgeting focuses on detailed categories of expenditure without linking them to outcomes, making it difficult to evaluate the performance of specific programs or activities.
2. Possible Inefficiencies: This budgeting approach may encourage managers to spend their entire budget allocation, even when savings are possible, for fear of having the budget reduced in subsequent periods.
3. Lack of Innovation: Line-item budgeting tends to focus on historical spending patterns and incremental adjustments, which may stifle innovation or flexibility in resource allocation.

(3 marks)