Budget Preparation

• in the Philippines uses a bottom-up approach.

  Budget Preparation
• starting from the lowest to the highest levels of the government.

  Budget Preparation
• the current year’s budget is formulated based on the previous year’s budget, which is just adjusted for any variances experienced in the past.

  Incremental Budgeting
• the current year’s budget is formulated without regard to the previous year’s budget. Government agencies are required to justify their current year’s proposed programs and expenditures, irrespective whether these are new or carried over from the previous year.

  Zero-Based Budegting
• is an issuance of the DBM to all government agencies marking the start of budget preparation for a fiscal year. contains, among other things, the next fiscal year’s targets, the agency’s budget ceiling, and other guidelines in the completion and submission of agency budget proposals.

  1. Budget Call
• Agencies engage citizens as they prepare their proposed budgets, through the Budget Partnership Agreements with civil society organizations (CSOs), Bottom-Up Budgeting (BUB), and other participatory budgeting mechanisms.

  2. Citizen Engagement
• Agencies consult with Regional Development Councils (RDCs) to make sure that their respective budget proposals are aligned with the regions’ development needs and priorities.

  3. RDC Consultation
• CSO

  Civil Society Organisations
• BUB - focus on rural development programs and the conditional cash transfer program of the poorest municipalities.

  Bottom-up Budgeting
• RDC

  Regional Development Councils
• Lead and contributing agencies for each program priority of the government (for example, tourism) meet and synergize their proposed budgets to meet target outcomes.

  4. Program Convergence
• Agencies prepare the forward estimates (Fes) or current costs of their ongoing programs and projects and submit these for the “Tier 1” stage of Two-Tier Budgeting Approach (2TBA).

  5. Angencies Tier 1Proposal (Ongoing Expenditures)
• “Tier 1” stage of Two-Tier Budgeting Approach

  2TBA
• Agencies prepare the forward estimates (Fes) or current costs of their ongoing programs and projects and submit these for the Tier 1 stage of 2TBA.

  6. Tier 1 Deliberations
• This document spells out the economic forecasts and fiscal targets for the budget year, the total cost of ongoing spending under Tier 1, and identifies the fiscal space: the available resources for new programs and projects or the expansion of existing ones. The Framework defines priority sectors and locations, and other guidelines that agencies must comply with in preparing their Tier 2 budget proposals.

  7. Budget Priorities Framework
• After undertaking further consultations with CSOs, RDCs, and other agencies, agencies prepare their proposals for new programs and projects or the expansion of existing ones. Agencies submit both their proposed Tier 1 and Tier 2 budget through the Online Submission of Budget Documents System


  8. Agency Tier 2 Proposal (New/Expanding Standing)
• Investment Coordination Committee

  ICC
• Development Budget Coordination Committee

  DBCC
• Subcommittee on Program & Project Appraisal

  SC-PPA
• Infrastructure Committee

  InfraComm
• Three-year Rolling Infrastructure Program

  TRIP
• The DBM, DoF, and NEDA, with the BSP (as the DBCC) present the proposed Budget before the President and the Cabinet for discussion and approval.

  10. Presentation to President and Cabinet
• The DBM validates the approved budgets and consolidates these into the Budget of Expenditures and Sources of Financing (BESF) and other budget documents.


  11. Confirmation and Finalization
• Budget of Expenditures and Sources of Financing

  BESF
• contains the following documents which are intended to assist the Congress in their review and deliberation of the proposed national budget:a. President Budget Message Nationalb. Expenditure Program (NEP) Budgetc. Expenditures and Sources of Financing d. Other documents aimed to provide further explanation of selected items in the NEP

  12. The President Budget
• National Expenditure Program

  NEP