The National Budget System consist of the methods and practices of Government for planning,

programming and budgeting.

- It includes adoption of sound economic and fiscal policies and the execution of programs and
projects geared towards political and economic social objectives.

Primary Concern

1. Availability in the use of money to provide services required or expected from the government.

Principal Objectives of the Budget System

1. To carry on all government activities under Comprehensive Fiscal Plan developed, authorized
and executed in accordance with the New Constitution, prevailing status, and principles of
Sound Public Management.
2. To provide for detailed periodic review and disclosures of the Fiscal position of the government
so that Fiscal Officers can determine the true financial position of the government.

Significant Concepts of Current Budget System

1. Concept of Balance
a. Limiting monies spent with monies received
b. The total resources must be allocated to the two broad categories of expenditures
i. COE – must not exceed 85%
ii. CO – must not be less than 15%
c. COE and Co must be allocated EQUITABLY among
i. the different regions of the country depending on its population, area and
prevailing conditions.
ii. The different sectors of the economy taking into consideration the major thrust
to a particular calendar year.
iii. The different programs, activities, and projects
d. Limited resources provide financing to
i. Regions which are economically depressed
ii. PPA which are essential in the Nation’s welfare and economic growth
2. Concept of Obligations
a. Permits budgeting to concentrate its efforts in controlling and reporting commitments
rather than the less meaningful payments.
b. Gives budgeting the precise measure it needs to determine and record commitments at
the time they are made rather than when they are paid.
3. Zero-Based Budgeting
a. Management process that provides for systematic consideration of all PAPs in
conjunction with the formulation of budget requests and program planning.
4. Performance Budgeting
a. Identifies PAPs in terms of services rendered’
b. Services are identified, measured quantitatively and the total and unit cost are
determined.
5. Budget Control and Accountability
 a. Each level in the organization is accountable to the next higher level for work
accomplishments and utilization of funds
6. Development of Personnel Skilled in BS
a. The budget system has such an important and significant role in the direction and
management of the government that specifically qualified persons are essential to its
successful operations.
b. It is now generally recognized that an individual no matter how well intentioned or well
trained in other fields, cannot cope successfully with the demands of the budget system
without specialized knowledge concerning its operations and techniques and without
devoting sufficient time to budgetary duties to carry them out properly.

Expenditure Priorities of the 2019 National Budget

1. Intensifying Infrastructure Development

a. The Duterte Admin believes that investing in growth-enhancing infrastructure projects
will impact positively on society and benefit both the present and future generations.
909.7 billion will be set aside for Build, Build, Build Program that will usher in the Golden
Age of Infrastructure in the Philippines.
b. Key Infrastructure projects includes
i. Ensure Safe and Reliable National Road System
ii. Major Road and Bridge Projects
iii. Rail Transport
iv. Air Transport
v. Maritime Transport
vi. Infrastructure projects in LGUs
2. Building a More Secure and Peaceful Nation
a. To clear the path towards national peace and security, the Duterte Administration will
focus its efforts on addressing the root causes of internal conflict, upholding the
sovereignty and territorial integrity of the State, modernizing the Defense Sector, and
building resiliency against natural and man-made calamities and disasters.
i. Maintaining Public Order and Safety
1. PNP
2. BFP
3. BJMP
ii. Combating Terrorism
1. PA
2. PAF
3. PN
iii. Achieving a Just and Lasting Peace
1. PAMANA Program – instill culture of peace, government continues to
enforce development interventions to areas prone to and affected nu
armed conflict through Payapa at Masaganang Pamayanan Program.
2. Focuses on promoting peace in Mindanao and channeled funds to
ARMM
iv. Strengthening Disaster Resiliency
 1. Flood Control
2. NDRRMF
3. PAGASA
4. Quadrant Mapping in Preparation for the Massive earthquake in GMMA
3. Enhancing Programs on Human Development
a. Expanded Educational Opportunities - The Duterte Administration recognizes the
fundamental right of every Filipino to receive quality education in a facility conducive to
learning and equipped with sufficient learning materials. Budget for education in 659.3
b. Social Protection
c. Universal Health for All
d. Secure and Meaningful Employment
e. Decent Housing and Clean, Healthy Environment
4. Sustaining Reforms in Government Service Delivery
a. The Duterte Administration committed to restore public faith and trust in the
government through reforms aimed at
i. Streamlining the bureaucracy
ii. Making Government Services More Accessible to People
iii. Ensuring swift and fair administration of justice