3.3.

Kinds of Budget
a. As to Nature
1. Annual Budget – budget which covers a period of one year
2. Supplemental Budget – budget which supplement or adjust a previous
budget which is deemed inadequate for the purpose it is intended
3. Special Budget – budget of special nature and generally submitted in
special forms on account that itemizations are not adequately provided in
the Appropriation Act or amounts that are not included at all in the
Appropriation Act.
b. As to Basis
1. Performance Budget – budget emphasizing the program or services
conduced and based on functions, activities and projects
2. Line-Item Budget - budget in which the basis is the objects of
expenditures such as salaries and wages, travelling expenses, freight,
supplies and materials, equipment, etc.
c. As to Approach and Technique
1. Zero-based Budgeting – requires systematic consideration of all
programs, projects and activities with the use of defined ranking
procedures. In this approach, activities are analyzed and presented in
“decision packages” or key budgetary inclusions.
2. Incremental Approach – where only additional requirements need
justifications. It focuses analysis of incremental changes in the budget
and maybe done within the context of performance and program
budgeting.

3.4. The Budget Cycle

 It is the formulation and eventual utilization of the national budget.
 The budget cycle has four phases, namely:
Budget Preparation Budget Execution
Budget Legislation Budget Accountability
 3.5. The Budgetary Accounts System
 According to National Budget Circular (NBC), the Allotment Release Program
(ARP) shall serve as the ceiling for the aggregate allotment releases during
the year from all sources. The ARP of each national government agency shall
be an amount equal to its appropriations from the following sources:
1. New Appropriations – agency specific budget and allocations or
additional releases from Special Purpose Funds (SPFs); and
2. Automatic Appropriations for Retirement and Life Insurance
Premiums (RLIP), Special Accounts in the General Fund (SAGFs),
and other items classified as such
3. Continuing Appropriations – allotments chargeable against the
unreleased appropriations for the MOOE and CO in the prior year’s
GAA.
 It consists of the following:
1. Appropriation – an authorization made by law or other legislative
enactment, directing payment of goods and services out of
government funds under specific conditions or for special purpose.
2. Allotment – an authorization issued by the Department of Budget and
Management to the government agency, which allows it to incur
obligations, for specified amounts, within the legislative appropriation.
3. Obligation – a commitment by a government agency arising from an
act of duly authorized official which binds the government to the
immediate or eventual payment of a sum of money.

REFERENCES:
 Government Accounting (2018). Angelito R. Punzalan, et al. Manila: GIC Enterprises & Co., Inc.
 Government Accounting & Accounting for Non-Profit Organization (2018). Milan, Z.V. Baguio City:
Bandolin Enterprise