I. Section 317. Submission of Budget Proposals by Heads or Departments or Offices.

(a) Each head of department or office shall submit a budget proposal for his department or office

to the local chief executive on or before the fifteenth (15th) of July of each year: Provided, That

the budget proposal of each department of office shall be categorized under either economic,

social or general services: Provided, further, That each service shall be covered by the budget of

at least one (1) department or office of the local government unit concerned.

The said budget proposal shall be prepared in accordance with such policy and program

guidelines as the local chief executive concerned may issue in conformity with the local

development plan, the budgetary ceilings prescribed by the local finance committee, and the

general requirements prescribed in this Title.

(b) Budget proposals of departments or offices shall be divided into two (2) primary categories,

namely: the current operating expenditures and the capital outlays. Such budget proposals shall

contain the following information:

(1) Objectives, functions, and projects showing the general character and relative importance of

the work to be accomplished or the services to be rendered, and the cost thereof; cralaw

(2) Organizational charts and staffing patterns indicating the list of plantilla positions with their

corresponding salaries, and proposals for reclassification of positions and salary changes, as well

as the creation of new positions with their proposed salary grade, duly supported by proper

justification; cralaw

(3) Brief description of the functions, projects and activities for the ensuing fiscal year, expected

results for each function, project and activity, and the nature of work to be performed, including

the objects of expenditures for each function, project and activity; cralaw
(4) Relation of the work and financial proposals to approved local development plans; cralaw

(5) Estimated current operating expenditures and capital outlays with comparative data for the

last two (2) preceding, current, and ensuing fiscal years; and

(6) Accomplishment reports for the last two (2) preceding and current fiscal years.

II. Content/Description

a) Each head of department or office shall submit a budget proposal for his department or office

to the local chief executive on or before the fifteenth (15th) of July of each year:

• Provided, That the budget proposal of each department of office shall be categorized under

either economic, social or general services:

• Provided, further, That each service shall be covered by the budget of at least one (1)

department or office of the local government unit concerned.

Economic Services - promote growth in the economy, using all factors in production, like

increasing productivity in agriculture and all other industries, generate employment and other

livelihood projects.

Social Services - promote the well-being and general welfare of constituents or people like

education, health, public safety, and protection of the marginalized and disadvantaged members

of the society.

General Services - provide planning, financial, administrative, legal and legislative services to

the frontline services of the LGUs.

The said budget proposal shall be prepared in accordance with such policy and program

guidelines as the local chief executive concerned may issue in conformity with;

• the local development plan,

• the budgetary ceilings prescribed by the local finance committee,

• and the general requirements prescribed in this Title.

b) Budget proposals of departments or offices shall be divided into two (2) primary categories,

namely:

1. the current operating expenditures

2. and the capital outlays.

Current Operating Expenditures (COE) - refer to appropriations for the purchase of goods

and services for the conduct of normal local government operations within the fiscal year,

including goods and services that will be used or consumed during the budget year.

• Personal Services (PS)

• Maintenance and Other Operating Expenses(MOOE)

Financial Expenses - expenses which are not used in the actual operation of the LGU. These

expenses include bank charges, interest expense, commitment fees and other financial charges.

Capital Outlay (CO) - refers to appropriations for the purchase of goods and services, the

benefits of which extend beyond the fiscal year and which add to the asset of the local
government unit concerned, including investment in public utilities such as public markets and

slaughter houses.

(a) On or before the 15th of July each year, the manager or head of the department or office,

should submit a planned budget for his/her department or office. However, the planned

budget will be classified into economic (trade and marketing), social (interactive relations

between private and public sectors) or general service (public aid or local environmental

sanitation). But the planned budget should be under the monetary coverage of a least one

department or office of the local unit concerned. However, the proposed budget shall be

planned in accordance with the procedures and guidelines imposed by local chief financial

executive on line with the improvement plans, expenditures limits, and what is needed

overall about the planned budget.

(b) Financial expenses plans of departments or offices should be split into two (2) types. Mainly

the present operating expenses and the main monetary expenses. This financial expenses

plan should have the following information.

(1) The purposes, intended actions, and the planned structures or activities showing the

main trait and the relationship values of the works to be done or the services to given to

public or private sectors. And how much money these plans will use.

(2) Guideline maps and workers designations with level of compensation. also to include

any changes in the future of any job category with changes of compensation. As well as
any new job category and the planned pay level. This part of changes should be fully

supported by authentic justification.

(3) A short explanation describing the intended actions, any design and the functions of

the next financial year and the probable outcome of each intended actions, any design,

and the functions, and the purpose of the job to be done plus the aim of the expenditures

for every rule, design and functions.

(4) The connection of the planned activity and monetary request to the on going local

improvement plans.

(5) About approximated present running expenses and financial expense plans as

compared to the last two (2) years before, the present and upcoming financial years

(6) With regards to what projects were done before the last two (2) and present financial

years.
III. SWOT Analysis

STRENGTH

1. Heads of Departments or Offices have been given authority to submit budget proposals in

conformity with the local development plan.

2. Provision of budget proposals as to economic, social and general services.

3. Coverage of budget proposals as to current operating expenditures and capital outlays.

4. Availability of funds for plans and projects prescribed by the local finance committee.

5. Availability of funds for plantilla position personnel like (salaries, proposed reclassification of

position and creation of new positions with proposed salaries).

6. Review of comparative data for the last two(2)preceding, current and ensuing fiscal years.

7. Accomplishment reports for the last two (2) preceding and current fiscal years to ensure

monitoring of activities.

The properly documented and accurately categorized proposed financial budget will easily

pass through committee approval. The on time submission of documents with thorough

justification of all planned future activities and projects, will enhance the immediate on time

acquisition of the proposed budget.The accurate estimate of proposed financial needs based on

factual expenditures as being required by proposal guidelines will also help in the facilitation of

the approval of the targeted financial budget.

WEAKNESS

1. Limitations on the availability of fund

2. Limitation on the date of submission of budget proposals

3. Inability to propose projects and programs beyond the date of submission of budget proposals.

4. Limitations on the hiring of personnel not included in the plantilla position.

Any discrepancies in documents like no substantial evidence of all figures presented to

approval committee will cause delay in the acquisition of the planned budget. Any differences of

figures and data about expenditures on previous projects, and activities as compared to those to

be made or done in the upcoming year can also bring up objections to the proposed financial

budget thus will cause tremendous delay in the approval of the wanted budget. Any deviation

from report of actual accomplishments submitted to support and justify the cost of projects and

functions for the next fiscal year will also cause the approval committee to deny, or deliberate for

more time which will also can bring more delay in attaining the budget.

OPPORTUNITIES

1. Implementation of programs, projects and activities when the budget proposals are approved.

2. Development and improvement of the local government units.

3. Accomplishment reports can be the window for a chance to give a better and elaborate pictures

of what were done during the preceding last two and the present financial years.

4. Much better yet, the organizational charts can be used to create a sumptuous reason to have a

speedy approval of the proposed budget.

5. Another criterion for possible no-delay processing of the budget proposal is the creation of

new jobs with salary level and proper documentation thus justifying the proposed financial

budget.

THREATS

1. Higher costs of materials and other operating expenses on the time of implementation of the

projects.

2. Projects delayed or not implemented will affect local economy.

3. One of the factors that will give problem to the approval of the proposed financial budget is

when the deadline of submission of the documents is missed causing the delay.

4. Deliberation by committee members and gathering of authentic documents to support the

intended programs and projects of the proposed financial budget.

5. The status and accomplishments of local projects and programs can create bigger problems in

immediate approval of submitted budget proposals.