budget process

• Four Phases of Budget

  1. Budget Preparation
  2. Budget Legislation
  3. Budget Execution
  4. Budget Accountability
• Stage 1 - Budget Call

  Budget Call - contains budget parameters earlier set by the Development Budget Coordination Committee (DBCC) as well as policy guidelines and procedures to aid government agencies in the preparation and submission of their budget proposals.
• Department of Budget and Management (DBCC)
• Mandate of the DBCC


  Recommend for Presidential approval the level of the annual government expenditure program and the ceiling of government spending for economic and social development, national defense, general government and debt service.
• Mandate of the DBCC


  Recommend to the President the proper allocation of expenditures for each development activity between current operating expenditures and capital outlay.
• Mandate of the DBCC


  Recommend to the President the amount set to be allocated for capital outlay under each development activity for various capital or infrastructure projects.
• Function of the DBCC


  The assessment of the reliability of revenue estimates.
• Function of the DBCC


  The recommendations of appropriate tax or other revenue measures and the extent and type of the borrowings.
• Function of the DBCC


  The conduct of periodic review and general examination of costs, accomplishments and performance standards applied in undertaking development projects.
• Composition of the DBCC

  DBM - resource allocation and management
• Composition of the DBCC

  DOF - revenue generation and debt management
• Composition of the DBCC

  NEDA - overall macroeconomic policy
• Composition of the DBCC

  OP - presidential oversight
• Department of Budget and Management (DBM)
• Deparment of Finance (DOF)
• National Economic and Development Authority (NEDA)
• Office of the President (OP)
• Agency Budget Proposal

  Project Procurement Management Plan - Document that contains everything that the project will be buying, categorized into either goods, services or infrastructure.
• Agency Budget Proposal

  Annual Procurement Plan - Document that consolidates the various PPMPs submitted by the various PMOs and end-user units within the Procuring Entity. It reflects the entirely of the procurement activities that will be undertaken by the Procuring Entity within the calendar year.
• Deparment of Budget and Management (DBM)

  National Expenditures Program (NEP) - The expenditure program is that portion of the national budget that refers to the current operating expenditures (COE), and capital outlays (CO), necessary for the operation of the various government departments and agencies.
• Deparment of Budget and Management (DBM)

  Budget of Expenditures and Sources of Financing (BESF) - This document contains macroeconomics assumptions, public sector context (including overviews of LGU and GOCC financial positions), breakdown of the expenditures and funding sources for the budget year, the current and the previous years.
• National Expenditure Program


  is submitted to assist Congress in the review and deliberation of the proposed national budget for the legislation of the annual appropriations measures for the next fiscal year. It contains the details of the government’s proposed programs. It provides the details of spending for each department and agency by program, activity or project (PAP), and is submitted inthe form of a proposed GAA.
• Public or government expenditures

  Economic development expenditures - Expenditures on agriculture and natural resources, transportation and communications, commerce and industry, and other economic development efforts.
• Public or government expenditures

  Social services or social development expenditures - Government outlay on education, public health and medicare, labor and welfare and others.
• Public or government expenditures

  General government or general public services expenditures - Expenditures for the general government, legislative services, the administration of justice, and for pensions and gratuities.
• Public or government expenditures

  National defense expenditures - Sub-divided intonational security expenditures and expenditures for the maintenance of peace and order.
• Public or government expenditures

  Public debt
• Capital Operating Expenditures

  Personnel Services - Capital expenditures are the expenses whose usefulness lasts for more than one year, and which add to the assets of the Government, including investments in the capital of government-owned or controlled corporations and their subsidiaries.
• Capital Operating Expenditures

  Other Maintenance and Operating Expenses - Current operating expenditures are the purchases of goods and services in current consumption the benefit of which does not extend beyond the fiscal year.
• Presidents Budget

  BESF, NEP, and House of Representatives Appropriation Committee
• Presidents Budget

  House of Representatives Appropriation Committee: Education, Agrarian Reform, & Health
• General Appropriation Bill (GAB) - Senate Finance Committee and Sub-Committees - BICAMERAL CONFERENCE COMMITTEE
• BICAMERAL CONFERENCE COMMITTEE

  GAB BICAM VERSION:

  House of Representatives & Senate
• Ratified GAB

  President & DBM

  • If not enacted - The previous GAA is enacted.
  • If enacted - General Appropriation Act (GAA).
• General Appropriations Act (GAA)


  is one of the most important legislations that Congress annually passes. It defines the annual expenditure program of the national government and all of its instrumentalities.
• Deparment of Budget and Management (DBM)

  Guidelines on the Release and Utilization of funds:

  • Agency will submit - Budget Execution Documents (BEDs).
  • Set Limit for allotments - Allotment Release Program (1) Agency-Specific Budget (GAA) (2) Automatic Appropriations
• Budget Execution Documents (BEDs)

  BEDs: Financial Plan (FP)

  Data Elements: Estimated obligation program for the budget year broken down by quarter, and current year obligations.

  Purpose: Serves as the overall financial plan of the department/agency/OU.
• Budget Execution Documents (BEDs)

  BEDS: Physical Plan (PP)

  Data Elements: Physical targets for the budget year broken down by quarter, and current year accomplishments.

  Purpose: Serves as the overall physical plan of the department/agency/OU.
• Budget Execution Documents (BEDs)

  BEDs: Monthly Disbursement Program (MDP)

  Data Elements: Projected monthly disbursements requirements for the budget by type of disbursement authority.

  Purpose: Basis of the issuance of disbursement authorities.
• Allotment


  is an authorization issued by the DBM to NGAs to incur obligations for specified amounts contained in a legislative appropriation in the form of budget release documents. It is also referred to as Obligational Authority.