Philippine Government Budget Process for Years 2014, 2016, 2021

Budget 2014 2016 2021

Process

Budget 1.Budget call: December 28, 1.Budget call: January 28, 1.Budget call:
Preparation 2012, 2015. November 29, 2019.
Budget Priorities ● Budget Priorities
Framework - it directs all Framework 2.Citizen
departments and agencies in 2.Agency Budget Engagement/
designing their respective Proposal Regional
budget proposals and priority ● Citizen Development
programs in accordance with Engagement: Council (RDC)
the Social contract. >Bottom-up budgeting Consultations with
2.Agency Budget Proposal >Budget partnership ACO/ARO.
● Citizen’s agreements. To ensure that the
Participation: national priorities are
The Aquino administration 3.Budget Forum responsive to regional
aims to increase citizen >DBM Officials and Staff and local needs in a
participation in the budget February 10, 2015. manner that LGU
process as part of its >National Government development
objective during his term. Agencies capacities are
>Bottom-up budgeting -February 11-17, 2015. strengthened in the
>Budget partnership >Corporate Budget Forum process.
agreements February 18, 2015
Consultations with:
3.Budget Forum 4.DBM-RO/Agency ROs ● Regional
● DBM Officials and Budget Forum on the FY Development
Staff 2016 National Budget Councils
>January 10, 2013, February 12, 2015 (NEDA)
● National ● Civil Society
Government 5.Consultations of Organizations
Agencies Agencies’ On-going (Agencies)
>January 11, 2013, Programs and Projects ● Student/
● Corporate Budget with: Jan to Feb 2015. Faculty
Forum >Regional Development Associations
>January 11, 2013. Councils and PASUC
>Civil Society (CHED)
4.DBM-RO/Agency ROs Organizations ● Other
Budget Forum on the FY >Other Stakeholders under Stakeholders
2014 National Budget the bottom-up budgeting. under the
Assistance to
5.Issuance of 6.Formulation of Municipalities
● Indicative Budget Forward Estimates (Hard (DILG)
Ceilings Budget Ceiling) Jan to
NBM No.116 - February 15, Feb 2015. 3.Encoding and
2013. The approved budget submission (thru
DBCC has approved for Tier 1 and Tier 2 shall OSBPS) of:
an obligation budget ceiling of form the total budget of ● Past Year's
P2,268B for FY2014. departments and agencies Actual
Macroeconomic that will be submitted to Obligations -
Assumptions and Fiscal
Targets
Fiscal space or allocation for
the expansion of ongoing and
new priority
programs/projects for 2014
=P163.2B.
Key programs: 5 Key Result
Areas under the PDP 2011-
2016 and the President's
Social Contract.
This indicates that only
around 7% of the budget
ceiling is still uncommitted
(DBM)
6.Consultations of
Agencies’ On-going
Programs and Projects
with: (Jan-Feb, 2013)
● Regional
Development
Councils
● Civil Society
Organizations
● Other Stakeholders
under the bottom-up
budgeting
7.Deadline of Submission
of B.P. Form No. 201 A, B, C
–Past Year’s Actual
Obligation and Current Year
Appropriation: March 15,
2013
8.Deadline of Submission
of FY 2014 Budget
Proposals: April 15, 2013.
9.Technical Budget
Hearing:
April 17 to May 7, 2013.
Agencies defend their
budget proposal to the
technical panel of DBM.
10.DBM Budget Review
May 13 to June 11, 2013.
11.Presentation to the
President and the Cabinet
Congress for B.P. Form
authorization. (Budget call Nos. 201 A, B,
for the FY 2016). C, D
● FY 2019 -
7.Technical Budget 2023 Revenue
Hearings with GOCCs Program -
(Forward Estimates) B.P. Form
February 9 to 27, 2015 Nos. 100, 100-
A, B, C
8.Macroeconomic ● Funding
assumptions, budget requirement
aggregations, forward for compulsory
estimates, and fiscal retirees - BP
space approved by Form 205
DBCC. 4. Issuance of NBM
● The fiscal position for Budget Priorities
for FY 2016 will Framework
translate to an Reset, Rebound,
obligation budget Recover: Investing for
ceiling of P3.0 Resiliency and
trillion, Sustainability.
● Of the P3.0 trillion
budget ceiling, 5.Deadline of
around 80 percent Submission of CY
or P2,419.1 billion 2021 Budget
will be eaten up by Proposals, Tiers 1
the cost of (FEs), and 2 as well
ongoing programs as Summary of
and projects. Outyear
9.DBM Budget Review Requirements
March 2 to 6, 2015 through OSBD
May 11, 2020
10.Sending of
Confirmation Letters to The total budget of
GOCCs or Government- departments and
owned and controlled agencies shall be
corporations. based on the total
March 9 - 10, 2015 cash requirements of
ongoing P/A/Ps under
11.Presentation to the Tier 1; and Tier 2 shall
President and the also include the total
Cabinet and approval of cash requirements for
the FY 2016 Hard Budget the continued
Ceiling of implementation of
Dept./Agency/Special Spill-over Projects in
Purpose Funds. FY 2021 wherein spill-
over
12.Issuance of Ceiling projects refer to
and Budget Priorities contracts authorized
Framework. and undertaken in FY
2020
13.Budget Forum that cannot be fully-
of the FY 2014 Proposed
Budget Levels
June 21, 2013.
12.Sending of Confirmation
Letters to Agencies
June 24 - 29, 2013.
13.Finalization of National
Expenditure Program (NEP)
Budget of Expenditures
and Sources of Financing
(BESF) Tables, Staffing
Summary, President’s
Budget:
14.Organizational
Performance Indicator
Framework (OPIF) Book
July 1 - 5, 2013
15.Submission of the FY
2014 Budget Documents to
the President
July 20, 2013,
It will be subject to the
approval of President
Benigno Aquino III.
16.Submission of the
President’s Budget to
Congress
July 23, 2013.
Reforms under Aquino
Administration:
● Program Budgeting
Program
● Performance-
Informed Budget
(PIB)
● Unified Account
Code Structure -
ensure that all
financial processes
from budgeting, cash
management,
accounting to auditing
follow a single
classification system.
● Medium-Term
Expenditure
● National implemented by the
Government end of the validity
Agencies period of the FY 2020
March 23-24,2015 GAA. (DBM)
● Corporate
Budget Forum 6.Conduct of
March 25,2015 Technical Budget
Hearings for Tier 2
14.RDC (New Spending)
Consultation/Dialogue Proposals,
With Selected GOCC April - May, 2020
Central Offices.
March 26-April 1,2015 7. Conduct of
Executive Review
15.Deadline for Board Hearings for
submission of FY 2016 Tier 2 Level,
Budget Proposals (New including Program
spending proposal and Convergence
hard budget ceiling) Budgeting
April 27, 2015 May 25 - June 10,
2020
16.Technical Budget
Hearing on New PCB - It provides an
Spending Proposal opportunity to
May 4-22, 2015 strengthen
convergence amongst
17.DBM Budget Review National Government
June 1-12, 2015 Agencies and aids in
scaling up climate
18.Sending of response.
Confirmation Letters to
GOCCs of the total 8. Sending of
budget levels Confirmation Letters
June 15-16,2015. to Agencies of the
Total Budget Levels
19.Presentation to the (Tier 1 and 2)
President and the June 16 - 17, 2020
Cabinet of the CY 16
Proposed Budget Levels 9..Presentation to the
of Dept. /Agency/Special President and the
Purpose Funds. Cabinet of the CY
June 22, 2015. 2021 Proposed
Budget Levels of
20.Finalization of NEP, Dept.
BESF, Staffing /Agency/Special
Summary, President's Purpose Funds
BM June 26, 2020
June 24-July 3,2015.
10..Finalization of
21.Submission of the NEP, BESF, Staffing
FY2016 Budget Summary,
Documents to the President's BM
 Framework(MTEF) President June 29 - July 6, 2020
● Organizational July 23, 2015
Performance 11..Submission of
Indicator 22.Submission of the FY the CY 2021 Budget
Framework (OPIF) - 2016 President's Budget Documents to the
is in accordance with to Congress President
the PFM Roadmap to July 28, 2015 July 20, 2020
make the budget truly
output-oriented, even Reforms under Aquino 12.Submission of the
in structure. Administration: CY 2021 President's
● Zero Based ● Medium-term Budget to Congress
Budgeting expenditure July 27, 2020
● Online Submission of framework
Budget Proposal (MTEF) Reforms under
System (OSBPS) ● The no lump sum Duterte
● Account Management policy will Administration:
Teams continue to be ● Priority
● Performance Based enforced. programs and
Incentive System ● Online projects
(PBIS). Submission of contained in
● Government Financial Budget the Updated
Management Documents 2017-2022,
Information System ● Program ● Public
(GIFMIS) Budgeting Investment
It is an integrated IT solution ● Special purpose Program (PIP)
that can collect and organize funds (SPFs) will ● Approved
financial information in a be limited to 2021-2023
central database to support >National Disaster Risk Three-Year
budget preparation, Reduction and Rolling
management, execution and Management Fund Infrastructure
financial reporting. >Contingent Fund Program
Statutory Shares of LGUs (TRIP)
>Other SPFs that are not It reflects the
under those mentioned continuing emphasis
above. on infrastructure
● Unified Accounts spending.
Code Structure ● Cash
(UACS) Budgeting
It was enhanced for the System
FY2016 budget through ● Treasury
COA-DBM-DOF Joint Single
Circular 2014-1 in order to Account
include; ● Two-Tier
>Fund cluster Budgeting
>Sector outcome Approach
>Horizontal Programs (2TBA);
segments. ● Unified
● Total resource Accounts
budget; Code
● Monitoring and Structure
Evaluation Tool. (UACS);
● Strategic support ● Program
 for Private Expenditure
● Public Partnership Classification
projects activities; (PREXC)
● Program or ● Disaggregatio
horizontal n of lump-sum
convergence amounts
budgeting, ● Monitoring &
Evaluation
Tool
● Program
Convergence
Budgeting
● The Open
Government
Partnership
(OGP) with
civil society
organizations
(CSOs) for
greater
openness,
transparency,
and
accountability.

Budget House Deliberations The President’s Budget deliberations

Legislation Budget in the House of
Senate Deliberations July of prior FY Representatives
The Senate conducts its and Senate
own committee hearings and President Aquino August-November
plenary deliberations on the has consistently of CuY
GAB. submitted the
proposed Budget a House and Senate
Senator Chiz Escudero: day after his State of the ratifications on the
delivers a speech on the Nation Address, much General
2014 GAB. earlier than the Appropriations Bill
November 19, 2013 deadline set by the August-November
● The 2014 budget 1987 Constitution. of CuY
proposal includes
funds for climate House Deliberations Sen. Sonny Angara,
change adaptation chairman of the
and disaster risk Senate Deliberations Senate committee on
reduction programs Sept.-Nov. Prior FY finance: NB 2021
and projects in the mostly aimed at
amount of P70 billion, The new chairman of funding programs to
and will also include committee: Senator Loren address the pandemic,
specific funding for Legarda said that the 2016 also fund initiatives to
the rehabilitation of national budget is inclusive improve the
the Visayas on top of and attuned to the educational system
the existing calamity sustainable development under a new normal
fund to be sourced goals. where face-to-face
 from items which can learning remains
be postponed in the Bicameral suspended, and seeks
2014 national budget. Deliberations to improve the
Nov-Dec prior FY information and
Bicameral Conference communications
Committee system.
Ratification &
Ratification and Enrollment Enrolment RA 11494 is a special
Dec of prior FY law with limited
Enactment duration that allows
Enactment President Duterte to
Dec of prior FY realign funds to
address the pandemic.

Enactment
of the GAA
December of CuY

Budget Early Bidding for Early Bidding for Early procurement

Execution Infrastructure Infrastructure activities
Oct-Dec of prior FY (August of PY)
Submission of Budget
Execution Documents Submission of Budget Submission of
Execution Documents Monthly Program
Allotment and Cash Nov-Dec of prior FY (October of PY)
Release Program
Allotment Release Submission of BEDs
Obligation (Bidding & Jan and throughout based on the NEP
Award) (December of PY)
Obligation
Cash Allocations (Bidding & Award) Awarding of
January - throughout contracts
(January of CuY)
Disbursement Disbursement
Throughout Submission of
The allotment Cash Allocation adjusted BEDs
release program Jan.- throughout based on GAA
shall be an equal (January of CuY)
amount of New appropriation under GAA New appropriations under Built-in appropriation
aggregate of: 2014 like Agency-specific GAA 2016 under GAA 2021.
budget allocation Automatic appropriations Programmed level of
Automatic appropriation RILP, Continuing appropriations automatic
SAGFs. like allotments chargeable appropriation (RILP,
against the unreleased SAGFs)
appropriations for the Consistent with cash
MOOE and CO in the FY based budget, depts.
2015 GAA. are no longer
authorized to avail of
excess income.
NBC 511. NBC 561. NBC 583.

Accountabilit Performance Target Performance Targets Release of Notices

 y January Jan of FY with GAA of Cash Allocation
(NCAs) for the 1st
Accountability Reports Accountability Reports sem
Agencies submit (January of CuY)
Financial Accountability Public Disclosures Release of NCAs
Reports on a monthly or for the 2nd sem
quarterly basis, and Physical Performance Review (July of CuY)
Reports of Operation
Mid-Year and Year-End Submission of
Reports quarterly Budget
Public Disclosure By Sept. of FY and within and Financial
the next FY Accountability
Citizen Engagement Reports
Through civil society Audit (Every quarter
organizations, citizens of the CuY)
monitor and evaluate the
performance of agencies Posting of
Disbursement
Performance Review Assessment Reports
DBM conducts regular (Every month of the
review of the financial and CuY)
physical performance of
agencies to know if they Publication of Mid-
achieve their targets. Year Report for CuY
and Year-End
Mid-Year and Year-End Report for PY
Reports (August-September)
September FY 2014 and
within the next year. Conduct of audit
(Within the ff year)
Audit
Within the following year.

Reference:
Abuan, J. (2014, August 31). The Philippine Budgetary Process. SlideShare.
https://www.slideshare.net/jomelyn21/the-philippine-budgetary-process

Ager, M. (2015, November 23). Senate body starts deliberations on proposed P3.002-T
2016 budget. Inquirer.
https://www.google.com/amp/s/newsinfo.inquirer.net/712233/senate-panel-starts-
deliberations-on-proposed-p3-002-t-2016-budget/amp

Department of Budget and Management. (2012, December 12). National Budget

Memorandum 155. https://www.dbm.gov.ph/wp-content/uploads/Issuances/2013/Joint
%20Memorandum%20Circular/NBM115/2014%20CALENDAR.pdf
Department of Budget and Management. (2013, April 25). Adoption of the budget
priorities framework in the preparation of the FY 2014 agency budget proposal.
https://www.dbm.gov.ph/wp-content/uploads/Issuances/2013/National%20Budget
%20Memorandum/NBM%20No.%20118.pdf

Department of Budget and Management. (2015, January 28). Budget Call for FY 2016.
https://www.dbm.gov.ph/wp-content/uploads/Issuances/2015/National%20Budget
%20Memorandum/Budget%20Call%202016/NBM%20No.123.pdf

Romero, P. (2020, November 9). Senate to start deliberations on 2021 budget. Philstar.
https://www.google.com/amp/s/www.philstar.com/headlines/2020/11/09/2055539/
senate-start-deliberations-2021-budget/amp/

Senate of the Philippines. (2013, November 19). Start of Budget Deliberations.

http://legacy.senate.gov.ph/photo_release/2013/1119_01.asp

Pangilina, M. A. ( 2017, May 17). Budgetary System: Budget Process of the Philippine
Government. SlideShare. https://www.slideshare.net/MariaAmeliaPangilina/budgetary-
system-budget-process-of-the-philippine-government