Public Fiscal Administration

Budget System in the

Philippines
BY: Ruth Ann Bingcang

Topic Outline

Definition of Terms

Appropriation Law

Budget Cycle

System of Check and Balance

Re: Appropriation Law

Definition of Terms

Budget Any plan showing how money is to be

spent.
Budgeting A branch of accounting that covers the
efficient management of cash by anticipating or
predicting monetary objectives in the future.

Appropriation Law

It is a legislative assignment of certain amount of

public money for a particular purpose.
It is called General Appropriation Law, if it is to
fund government programs or operations for one
year, or Special Appropriations Law, if it is devoted
for expenditure of a specific operation of
government or payment of a particular demand.

BUDGET CYCLE
1. Budget Preparation

2. Budget Legislation
3. Budget Execution
4. Budget Review

1) BUDGET PREPARATION

Starts with the Budget Call and ends with the

President's submission of the proposed budget to
Congress.

a) Budget call

At the beginning of the budget preparation year, the

DBM; issues the National Budget to all agencies
(including state universities and colleges) and a
separate corporate budget call to all GOCCs and
GFIs

b) Bottom-Up-Budgeting

Aquino government through the Cabinet Cluster on

Human Development and Poverty Reduction has
identified 300 to 400 of the poorest municipalities
and will engage in crafting community level poverty
reduction and empowerment plans.

c) Technical Budget Hearings

It is conducted after department and agencies submit

their Agency Budget Proposals to DBM.
Agencies defend their proposed budgets before a
technical panel of DBM.
DBM bureaus review the agency proposals and
prepare recommendations.

d) Executive review

Recommendations are presented before an Executive

Review Board which is composed of the DBM
secretary and Senior Officials.
Implementation issues are also discussed and
resolved.

e) Consolidation, Validation &

Confirmation

DBM consolidates the recommended agency

budgets and recommendations into a National
Expenditure Program and a Budget of Expenditures
and Sources of Financing (BESF).
As part of the consolidating process, the
deliberations by the DBCC will determine the
agency and sectoral allocation of the approved total
expenditure ceilingin line with the macroeconomic
and fiscal program.

f) Presentation to President and

Cabinet

The proposed budget is presented by the DBM

together with the DBCC, to the President and
Cabinet for the refinements or reprioritization.
After the President and Cabinet approve the
proposed National Expenditure Plan, the DBM
prepares and finalizes the budget documents to be
submitted to Congress.

g) The President's Budget

The budget preparation phase ends with the

submission of the proposed national budget to
Congress.

2) BUDGET LEGISLATION

This starts upon the House Speaker's- receipt of

the President's Budget and ends with the
President's enactment of the General
Appropriations Act.

a) House Deliberations

General Appropriations Bill (GAB) will be crafted

by the House Appropriations Committee.
Budget deliberations in the Senate formally start
after the House of Rep. Transmits the GAB.

b) Bicameral Deliberation

Once both Houses of Congress have finished their

deliberations, they will each constitute a panel to the
Bicameral Conference Committee.
The Committee will discuss and harmonize the
conflicting provisions of the House and Senate
versions of GAB.
The harmonized or Bicam Version is then
submitted to both Houses, which will then vote to
ratify the final GAB for submission to the President.

c) Veto

The President and DBM then review the GAB and

prepare a Veto Message, where budget items
subjected to direct veto or conditional
implementation are identified, and where general
observations are made.

As soon as the GAA is enacted, the government can

implement its priority programs and projects.
When the GAA is not enacted before the fiscal year
starts, the previous year's GAA is automatically
reenacted.

3) BUDGET EXECUTION

Begins with DBM's issunce of guidelines on the

release and utilization of funds.
Agencies are required to submit their Budget
Execution Documents (BEDs) at the start of budget
execution.

The DBM prepares an Allotment Release Program

(ARP) to set a limit for allotment issued to an
agency and on the aggregate.

4) BUDGET REVIEW

The DBM monitors the efficiency of fund utilization

, assesses agency performance and provide a vital
basis for reforms and new policies.
Agencies submit Budget Accountability Reports
(BARs) that show how agencies used their funds and
identify their corresponding physical
accomplishments.
Agency Performance Reviews (ARPs) are conducted
quarterly or every sem.

An annual Budget Performance Assessment

Review (BPAR) is conducted to determine each
agency's accomplishment and performance by the
year- end.

BUDGETARY
POWER

POWER TO
INITIATE

POWER OF
THE
PURSE

POWER TO
CONCUR

VETO
POWER

POWER TO
OVERRIDE

JUDICIAL
POWER

System of Check and Balance

Re: Appropriation Law

Thanks For Listening!