Some concepts…

the inflow and outflow of

financial resources to
achieve public objectives
WHAT IS A ?

A budget is a plan for the accomplishment of

programs related to objectives and goals
within a definite time period, including an
estimate of resources required, together with
an estimate of resources available, usually
compared with one or more past periods and
showing future requirements.
- Department of Budget and
Management
 It refers to the totality of the budgets of
various departments of the national
government including the NG support to
Local Government Units (LGUs) and
Government- Owned and Controlled
Corporations (GOCCs).
 Beforeit’s authorization or final legislation, it is
presented in a form of an Appropriation Bill.
 Government budgeting is the critical exercise
of allocating revenues and borrowed funds to
attain the economic and social goals of the
country.
◦ It also entails the management of government
expenditures in such a way that will create the most
economic impact from the production and delivery of
goods and services while supporting a healthy fiscal
position.
 It refers to an appropriation which is a
legislative authorization to spend or an
allotment which is an authorization by the
Department of Budget and Management (DBM)
to obligate, or as actual cash available.
Public Revenues- all incomes or receipts of
the government treasury used to support
government expenditures
-Prof. Briones
5 Main Sources
Tax Revenues
Capital Revenues
Extra-Ordinary Income
Public Borrowings
Grants
Nature of Expense
a. Current Operating Expenditures
i. Personal Services
ii. Maintenance and other operating expenses
b. Capital Expenditures
Functional Categories
a. Economic Development/ Services
b. Social Development/Services
c. National Defense
d. General Government/Public Services
e. Debt Service
“Art.VI, sec. 29. No money shall be paid by the
treasury except in pursuance of an
appropriation made by law.”

 This provision also establishes the need for all

government entities to undergo the budgeting
process to secure funds for use in carrying out their
mandated functions, programs and activities.
Some questions

1. Why does the government prepare a

new budget every year?

2. Who decides how the money will be

allocated?
 (AGENCIES,DBCC)

BUDGET
ACCOUNTABILITY BUDGET )
(AGENCIES, PROCESS (CONGRESS)

COA)

(AGENCIES)
1. The budget call
- Contains budget parameter (including
macroeconomic and fiscal targets and agency
budget ceilings) as set before by the
Development Budget Coordination Committee
(DBCC).

2. Stakeholders Engagement
- This seeks to increase citizen participation in
the budget process, departments and agencies are
tasked to partner with civil society organizations
(CSOs) and other citizen-stakeholders.
 Department of Health
 Department of Education
 Department of Social Welfare and Development
 Department of Public Works and Highways
 Department of Agriculture
 Department of Agrarian Reform
 National Food Authority
 National Housing Authority
 National Home Mortgage and Finance Corp.
 Department of Tourism
 Department of Transportation and Communication
 Department of Interior and Local Government
 Department of Justice
 Department of Labor and Employment
 Department of Environment and Natural Resources
 Light Rail Transit Authority
 National Electrification Administration
 National Irrigation Administration
3. Technical Budget Hearings
-These are conducted after departments and
agencies submit their Agency Budget Proposals
to DBM. Here agencies defend their proposed
budgets before a technical panel of DBM, based
on performance indicators on output target and
absorptive capacity.
-DBM bureaus then review the agency proposals
and prepare recommendations.
4. Executive Review
- The Executive Review Board which is
composed of DBM Secretary and senior official
will deliberate for prioritization of programs and
corresponding support, vis-à-vis the priority
agenda of the national government.

5. Consolidation, Validation and

Confirmation
- DBM the consolidates the recommended
agency budgets and recommendations into a
National Expenditure Program and a Budget of
Expenditures and Sources of Financing (BESF).
6. Presentation to President and Cabinet
- The proposed budget is presented by DBM, together
with the DBCC, to the President and Cabinet for
further 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.

7. The President’s Budget

- The budget preparation phase ends with the
submission of the proposed national budget-
“President’s Budget”-- to Congress.
 Thisstarts upon the House Speaker’s receipt
of the President’s Budget and ends with the
President enactment of the General
Appropriations Act.
1. House Deliberations
-House of Representatives, in plenary assigns the
President’s Budget to the House Appropriation
Committee.
-Conduct budget hearings, scrutinize, then crafts
General Appropriation Bill (GAB).
-Approval
2. Senate Deliberations
-As in the House process, the Senate conducts its
own hearing and plenary deliberations on the
GAB. Budget deliberations in the Senate,
formally start after the House of Representatives
transmits the GAB.
3. Bicameral Deliberations
-On both Houses of Congress have finished their
deliberations, they will each constitute a panel to
the Bicameral Conference Committee.
-conflicting provisions of the House and Senate
versions of GAB are discussed and harmonized.
4. Ratification and Enrollment
- 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. Once
submitted to the President for his approval, the GAB is
considered enrolled.

5. The Veto Message

- The President and DBM then review the GAB
and prepare a Veto Message, where budget items
subjected to direct or conditional implementation
are identified, and where general observations are
made.
6. Enactment
- When the GAA is not enacted before the fiscal
year starts, the previous year’s GAA is
automatically reenacted.
 Thisis where the people’s money is actually
spent. As soon as the GAA is enacted, the
government can implement its priority
programs and projects.
-The execution phase begins with DBM’s issuance
of guidelines on the release and utilization of
funds.
-Disbursement is the final step of the budget
execution phase, where government monies are
actually spent.
 Though this, the DBM monitors the efficiency
of fund utilization, assesses agency
performance and provides a vital basis fro
reforms and new policies.

1. Budget Accountability Reports

-Include quarterly physical and financial reports of
operations; income reports; monthly statement of
allotments; obligations and balances; and monthly report of
disbursement
2. Review of Agency Performance
- The DBM regularly review the financial and physical
performance of agencies, actual utilization of funds and
physical accomplishments, as indicated in the agencies’
BARs, it is also evaluated against their targets.

3. Audit
- Auditing is not within the DBM’s jurisdiction, and is
instead lodged under the Commission on Audit
(COA).
- The DBM then uses COA’s reports in confirming agency
performance, determining budgetary levels for agencies
and addressing issues in fund usage.
4. Performance-Based Incentive System
- The DBM is also in the process of establishing a
performance-based incentive system which will
recognize and reward good performance among
government employees to help improve the
efficiency of service delivery across all government
institutions.
 SECTORAL ALLOCATION (in Billion Pesos)

700.2
967.9 Social Services
Economic Services
General Public Service
432.6 Debt Service
Defense
399.4

89.5
400 367.1
350
309.5 303.2
300
250 219.9
200
144.5
150 136.2 141.4
123.2
90.8 108.2 83.4 103.9
100
50
0
2014
2015
THE END

Godbless
