Final answer:
The notion that zero-based budgeting relates input of resources to output of services is incorrect. Instead, zero-based budgeting requires justifying expenses from scratch in each budgeting period, while performance-based budgeting links resources to service output.
Step-by-step explanation:
The statement that the type of budgeting that relates input of resources to output of services is zero-based budgeting is False. Zero-based budgeting is an approach to budgeting where all expenses must be justified and verified for each new period, starting from a "zero base," rather than simply adjusting past budgets. This method does not inherently relate the inputs of resources directly to the output of services, but rather evaluates all expenditures based on necessity and efficiency. On the other hand, performance-based budgeting is the type that typically relates input of resources to output of services, focusing on the outcomes of services provided.
Government budgets at all levels—federal, state, local—show expected revenue and planned expenditures. Budgets can reflect policy decisions and can be affected by unexpected events or shifts in policy, illustrating the dynamic nature of budget planning.