Enumerate the Discuss the Present the Internal

Budget Process of Present the Budget Process

2021 Philippine Revenue Allotment
the National of the Local for the Calendar
Government National Budget Government Year 2021
Budget Process in the National Government II
What law governs the use of
government funds?

Section 29 (1), Article of the

1987 Constitution provides
“No money shall be paid by
the Treasury except in
pursuance of an
appropriation made by law."
 GOVERNMENT ACCOUNTING PLAN
shows the overall accounting cycle in the Local Government Unit

Budgetary Receipts/Income Financial

Disbursement
Accounts and Deposits Reporting
System
System System System

COMPOSITION
BUDGETARY
ACCOUNT SYSTEM
The Budgetary Accounts System
encompasses the processes of
preparing the Agency Budget Matrix
(ABM), monitoring and recording of
allotments received by the agency
from the DBM, releasing of Sub-
Allotment Release Order (SARO- to
Regional Offices (RO) by Central Office
(CO), issuance of Sub-SARO to
operating units (OUs) by the RO and
recording and monitoring obligations.
BUDGETARY ACCOUNTS

Consist of the appropriations,

allotments and obligations.
Agency Budget Matrix
(ABM)
The ABM refers to a document
showing the disaggregation of agency
expenditures into components like,
among others, by source of
appropriation, by allotment class and
by need of clearance.
The National Budget

Is a plan for financing the government

activities for a fiscal year prepared and
submitted by responsible executive to
a representative body whose approval
and authorization are necessary before
the plan can be executed.
BALANCED BUDGET PERFORMANCE INCREMENTAL ZERO-BASED
INFORMED BUDGETING BUDGETING (ZBB)
BUDGETING A process which
It is the budget
where the proposed Is a budgeting A budget where only requires systematic
expenditures are approach that uses additional consideration of all
equal to or less than performance requirements needs programs, projects
the estimated information to assist justifications. and activities with
revenues. in deciding where the the use of define
funds will go. ranking procedures.
The Budget Cycle
Section 22 of the 1987 Constitution
The President shall submit to the
Congress within thirty days from the
opening of every regular session, as
the basis of the general appropriations
bill, a budget of expenditures and
sources of financing, including receipts
from existing and proposed revenue
measures.
The National Budget
The ACCOUNTABILITY PREPARATION

Budget
Cycle EXECUTION LEGISLATION
 BUDGET PREPARATION

Presentation
Budget
Budget Call to the Office of
Hearing
the President

PREPARATION
 BUDGET PREPARATION
The main agency involved is the Development Budget Coordination Committee (DBCC)
composed of the following agencies is as follows:
1. The Department of Budget and Management, the agency responsible for
resource allocation and management
2. The Department of Finance, the agency responsible for resource generation and
debt management
3. The National Economic and Development Authority (NEDA), the agency
responsible for overall economic activity
4. The Bangko Sentral ng Pilipinas (Central Bank of the Philippines), the agency
responsible for monetary measures and policies
5. The Office of the President of the Philippines, the agency responsible for the
approval and oversight of the budget
PREPARATION
 BUDGET LEGISLATION

PRESIDENT’S
ENACTMENT

BICAMERAL
DELIBERATION

SENATE
DELIBERATION
LEGISLATION

RECEIPT OF THE PRESIDENT

BUDGET BY THE SPEAKER
 THE APPROVED BUDGET

New General Continuing Supplemental Automatic

Appropriation appropriation appropriation appropriations
• annual • authorizations to • additional • authorizations
appropriation for support the appropriations to programmed
incurring incurrence of augment the annually which do
obligations, as obligations of original not require
listed in the GAA obligations appropriations periodic action by
beyond the which proved to the congress
budget year. be insufficient
 THE APPROVED BUDGET

Unprogrammed Retained Revolving Trust receipts

Funds income/funds Funds • Receipts by a
• Standby • collection which • Receipts from business government
type activities of agencies
appropriations the agencies can which are authorized to be agency acting as
which may be use directly in constituted as such. These agent
availed upon the are self-liquidating and all
their operations obligations and
occurrence of expenditures incurred by
certain instances. virtue of said business-
type activity shall be
charged against the fund
 BUDGET EXECUTION

RELEASE
GUIDELINES
AGENCY TO
AND BED INCURRENCE OF DISBURSEMENT
ALLOTMENT INCUR
(Budget OBLIGATIONS AUTHORITY
OBLIGATION
Execution
Documents)

EXECUTION

SUMMARY
 RELEASE
GUIDELINES
AND BED
(Budget NATIONAL GOVERNMENT AGENCIES
Execution
Documents) (NGAs)

MAJOR LOCAL GOVERNMENT UNITS (LGUs)

RECIPIENTS

GOVERNMENT OWNED AND CONTROLLED

OPERATIONS
(GOCCs)
EXECUTION
 ALLOTMENT

Authorization
issued by DBM to
government agency

EXECUTION
 DISBURSEMENT
AUTHORITY

NON-CASH
NOTICE OF CASH NOTICE OF TRANSFER CASH DISBURSEMENT
AVAILMENT
ALLOCATION OF ALLOCATION CEILING
AUTHORITY
• Cash authority • Authority issued by • Authority granted by • An authority issued
issued by the DBM an agency’s central DBM to government by the DBM to
to central, regional office to its regional agencies to account departments with
and provincial and operating units for the cash overseas operations
offices and to cover the latter’s equivalent of loan e.g., DFA and DOLE
operating units cash requirement. proceeds availed of to utilize their
through the through supplier’s income
authorized credit/constructive collected/retained
government cash. by their foreign
servicing banks of service posts (FSPs)
the MDS, to cover to cover its
the cash operating
requirements of the requirements but
agencies not to exceed the
released allotment
EXECUTION to the said post.
 SUMMARY

An authorization made by law or other legislative enactment,

APPROPRIATION directing payment out of government funds under specified
conditions or for specific purposes.

Authorization issued by DBM to an agency, through Agency Budget

Matrix (ABM) or Special Allotment Release Order (SARO), which
ALLOTMENT
allows the latter to incur obligation for specified amounts
contained in a legislative appropriation.

Amount contracted by an authorized officer for which the

OBLIGATION
government is held liable

DISBURSEMENT Actual amount paid out of the budget amount

 ILLUSTRATION
General Appropriations:
Personnel Services (PS) 600,000
Maintenance and Other Operating Expenses (MOOE) 700,000 The Department of Budget and
Management (DBM), upon approval
Capital Outlay (CO) 1,200,000
and issuance of the General
Total 2,500,000 Appropriations, released the
following for Agency X:
Allotments:
Personnel Services (PS) 550,000
On January 6, 2021, Agency X
Maintenance and Other Operating Expenses (MOOE) 600,000 incurred the following:
Capital Outlay (CO) 1,000,000
Obligations incurred:
Total 2,150,000
Personnel Services (PS) 100,000

Notice of Cash Allocations: Maintenance and Other 200,000

Operating Expenses
Personnel Services (PS) 500,000 (MOOE)
Maintenance and Other Operating Expenses (MOOE) 500,000 Capital Outlay (CO) 900,000
Capital Outlay (CO) 800,000 Total 1,200,000
1,800,000
 BUDGET ACCOUNTABILITY

PERFORMANCE
REVIEWS

BUDGET
ACCOUNTABILITY AUDIT
REPORTS

ACCOUNTABILITY
The National Budget
 THE
CHALLENGE
 There is no such thing as perfect
planning or budgeting regardless of
in-depth analysis and rigorous
s c r u t i n y.
B U D G E T P R E PA R AT I O N
• Encounter the lack of resources
needed to prepare the budget
• Where shall we get those budget
that will be utilized for the upcoming
fiscal year
• Determining carefully and identifying
the priority will be a huge tasks
knowingly there are several issues
that needs to be addressed and to
come up with new initiatives to
consider
B U D G E T P R E PA R AT I O N

• To have a performance-based
framework allocating resources
to specific objectives or
activities based on appropriate
metrics; ultimately, this
framework provides increased
visibility into how financial
decisions translate into results.
B U D G E T L E G I S L AT I O N
• The political budgeting process is a bit
messy, one of its underlying principles.
• Budgets aren’t approved on a yes or no
basis. Instead, they’re the subject of
debate.
• Individuals seated in the senate and the
house of representatives if not all, some
have their own personal interests in
proposing our GAB
• While at times, the political process can
distort budgetary priorities.
B U D G E T L E G I S L AT I O N

• Have large amount of

supporters in the Senate,
cabinet members and house of
representatives.
In layman’s term; it’s called “Padrino System”, we
are not born yesterday for us not to know these
things, but if you wanted your GAB to be
approved then debate in a more precise, in a
more convincing manner in which they will think
that your proposed budget should be approved.
BUDGET EXECUTION
• Timing may not always be right
No matter how well you plan, your resource
allocations don’t always follow your budget plans.
The budget execution stage is when funds are
actually raised and spent.

• This stage can be somewhat of a

challenge for civil society groups
looking to ensure the budget is
implemented as intended
BUDGET EXECUTION
• Budgets generally are not implemented
exactly as they were approved
• Funding levels in the budget are not
adhered to and, through such practices
as virement (i.e., the executive shifts
funds that were allocated to one area to
another during the budget year)
• Authorized funds are not spent for the
intended purposes
• Deviations can result from conscious
policy decisions or in reaction to
changing economic conditions
BUDGET EXECUTION
• Dramatic differences between the
allocated budget and actual spending that
do not correlate with any measurable
policy
• Outright abuse by the executive
• Reflect the effects of a poor budget
process and technical problems that make
it difficult for the executive to implement
the budget in line with what was enacted
into law.
• Budget may not be clear about the
intended purposes of particular funds
• Weak monitoring and reporting systems
can limit the availability of information
that the executive needs to monitor the
flow of expenditures.
BUDGET EXECUTION
• Adjust the program/project
implementation to handle increases in
spending or lower than expected
revenues.
• A good budget isn’t a limitation on what
our country can spend. It’s a financial
embodiment of your country’s strategy
and tactics for the year.
• There are a lot of unforeseen
circumstances during the execution
phase, a good strategy and contingency
plan is a good option in dealing with such
problems during the execution.
B U D G E T A C C O U N TA B I L I T Y
• Even though the budget has already been
consummated there will always be
problems that will be encountered during
this phase and those problems require a
wider lens.
• Budget revision shall not be disregarded
since there are several issues that
transpired during the previous phases.
Adjustments and changes in revenues, costs and new
information about the stakeholders are examples of things that
may require budget revisions.

•
B U D G E T A C C O U N TA B I L I T Y

• The only solution is to evaluate the

budget regularly.
2023
NATIONAL
BUDGET
Agenda for Prosperity:
Economic Transformation Towards
Inclusivity and Sustainability
The proposed FY 2023 National Budget supports the achievement of
the Administration’s headline goals:
 Theme adopted by the

FY 2023 National Budget

AGENDA FOR PROSPERITY:
“ECONOMIC TRANSFORMATION TOWARDS
INCLUSIVITY AND SUSTAINABILITY”

Appropriations submitted to
the Congress annually for
approval and legislation
Appropriations which do not
need to be included in the
legislation of the Budget since
these are already authorized
by existing laws
 Spending Priorities

Agriculture Sector Budget Science, Technology, and Innovation

Social Protection Enterprise Development

Health Infrastructure

Environment, Climate Adaptation,

Education
and Disaster Resilience

Labor & Employment

Fiscal Program
Revenues
The projected revenue
collection for FY 2023 is
expected to reach Php 3.633
trillion, which will be used
to fund high-impact priority
programs, activities, and
projects, particularly in
education, health, and
social protection systems
improvement, disaster-risk
management, and digital
transformation.
• Government Accounting 2018 edition by Angelito
Punzalan, et al.
• https://dbm.gov.ph/
• https://blogginghands.com/2020/03/17/the-
four-phases-of-the-budget-cycle-in-the-
philippines-as-well-as-the-problems-
encountered-during-each-phase/
• Microsoft Word - 03UNDPFINAL.htm
(ombudsman.gov.ph)
• Ruling8 (coa.gov.ph)

Sources or References on Budgeting Process in NG V

76