But first, lets discuss what is constitutional provision, it is a law not formed from statute or

common law but rather is inscribed within the founding law.

So, the constitutional provisions on budgeting entails the preparation of the government's
budget every year is in accordance with the provision of the Constitution. Here are provisions
used with respect to the budgeting of the government.

a. Tasks and Powers of the Executive

Article VII, Section 22: “The President shall submit to the Congress within 30 days from the
opening of every regular session, as the basis of the general appropriation bill, a budget of
expenditures and sources of financing including receipts from existing and proposed revenue
measures.”

This means that the President is required to submit a budget of expenditure and sources of
financing within 30 days from the opening of every regular session of Congress. While,

Article VI, Sec. 28 (2): “The President shall have the power to veto any particular item or items
in an appropriation, revenue or tariff bill but the veto shall not affect the item or items to which he
does not object.”

This article means that reject item or items in the budget proposal as long as it does not bother
items he did not object.

Now lets forward to

b. The Tasks of Congress

Article VI, Sec. 24: “All appropriation, revenue or tariff bills authorizing increase of the public
debt, bills of local application and private bills shall originate exclusively in the House of
Representatives but the Senate may propose or concur with amendments.”

This paragraph means that alterations such as increase in the budget shall exclusively originate
from the house of representatives but the senate may propose or concur with amendments.

Article VI, Sec. 25 (1): “The Congress may not increase the appropriations recommended by the
President for the operation of the Government as specified in the budget. The form, content,
and manner of preparation of the budget shall be prescribed by law.”

This paragraph means that the congress may increase or not the proposed budget. As long as
the form, content and manner of preparing the budget shall be prescribed by the law.

c. Procedures for passing the General Appropriations Bill or proposed budget

Is found in The General Appropriations Act (GAA) of 2023 amounting to PhP5. 268 trillion shall
also be known as Republic Act (RA) No. 11936 or an 'Act Providing for the Operation of the
Government of the Republic of the Philippines from January 1 to December 31, 2023'

Sec. 25 (2): No provision or enactment shall be embraced in the general appropriations bill
unless it relates specifically to some particular appropriation therein. Any such provision or
enactment shall be limited in its operation to the appropriation to which it relates.”

This paragraph means

Sec. 25 (3): “The procedure in approving appropriations for the Congress shall strictly follow the
procedure for approving appropriations for other department and agencies.”

This sections means that procedures for appropriated budgets are all the same for departments
and agencies.

Sec. 25 (4): “A special appropriations bill shall specify the purpose for which it is intended, and
shall be supported by funds actually available as certified by the National Treasurer, or to be
raised by a corresponding revenue proposal therein.”

NO explanation.

Sec. 25(5): “No law shall be passed authorizing any transfer of appropriations; however, the
President, the President of the Senate, the Speaker of the House of Representatives, the
Chief Justice of the Supreme Court, and the heads of Constitutional Commissions may,
by law, be authorized to augment any item in the general appropriations law for their respective
offices from savings in other items of their respective appropriations.”

This paragraph means

Sec. 25 (6): “Discretionary funds appropriated for particular officials shall be disbursed only for
public purposes to be supported by appropriate vouchers and subject to such guidelines as may
be prescribed by law.”

This paragraph means

Sec. 25 (7): “If, by the end of any fiscal year, the Congress shall have failed to pass the General
Appropriations Bill for the ensuing fiscal year, the General Appropriations Law for the preceding
fiscal year shall be deemed reenacted and shall remain in force and effect until the General
Appropriations Bill is passed by the Congress.”

It means that the government will continue to operate on January 1 onwards even the budget for
the current year is not yet approved. For the time being, last year’s budget will serve as this
year’s budget.
d. Use of public funds

Sec. 29 (1): “No money shall be paid out of the Treasury except in pursuance of an
appropriation made by law.”
It means that

Sec. 29 (2): “No public money or property shall be appropriated, applied or paid, or employed,
directly or indirectly, for the use, benefit, or support of any sect, church, denomination, sectarian
institution or system of religion, or of any priest, preacher, minister or other religious teacher or
dignitary as such, except when such priest, preacher, minister or dignitary is assigned to the
armed forces or to any penal institution or government orphanage or leprosarium.”

It means that the

Sec. 29 (3): “All money collected on any tax levied for a special purpose shall be treated as a
special fund and paid out for such purpose only. If the purpose for which a special fund was
created has been fulfilled or abandoned, the balance if any, shall be transferred to the
general funds of the Government.”

It means that the

Now let move to National Budget cycle

There are 4 phases in managing the budget, these are
- Budget preparation
- Legislation or authorization
- Execution and
- Accountability

The PAS or Philippine administrative system actively participates in the national budget
cycle—budget preparation, budget authorization, budget execution, and budget accountability.
While the budget for 2020 is executed/spent, the 2021 budget is proposed or is under budget
legislation. The Department of Budget and Management (DBM) issues the budget call in the 1st
week of January. All national government agencies (NGAs) respond by starting to propose their
budgets for the next fiscal year.

For my part, we will focus on the Budget Preparation.

What is Budget preparation

It is the critical exercise of allocating revenues and borrowed funds to attain the economic and
social goals of the country.
The budget preparation phase is guided by budget calendar.

In this sense, it requires a thorough step by step preparation to ensure that it is correct and just.
Thus it must adhere to the National Budget Policy

According to E.O. 292, 1987:411 ---- A budget policy is an instrument of national development,
reflective of national objectives, strategies, and plans.

It is supportive of and consistent with the socio-economic development plan and is oriented
toward the achievement of explicit objectives and expected results. Moreover, it ensures that
funds are utilized and operations are conducted effectively, economically and efficiently. The
budget policy should be formulated within the context of a regionalized government structure
and of the totality of revenues and other receipts, expenditures and borrowings of all levels of
government and of Government-Owned and Controlled Corporations (GOCCs). It must be
prepared within the context of the national longterm plan and of a long-term budget program.

- The Philippine Constitution requires the submission of the President’s budget 30 days
from the opening of each regular session of Congress.
- So when the 1st session starts at january 052024, the prepared budget should be pass
by december 06, 2023.

1. The first steps of the annual budget preparation begins with the Determination of
budgetary parameters, the overall economic targets, expenditure levels, revenue
projection, and the financing plan by the Development Budget Coordinating Committee
(DBCC).

The Development Budget Coordinating Committee (DBCC) determines the basic budgetary
parameters.
For department of budget and management- incharge of resources allocation and management
For Department of finance Resource they are in charge of generation and debt management
For Neda- overall economic policies
For BSP- Monetary measures and policies
And for office of the president- is the presidential oversights

The DBCC recommends for Presidential approval the following:

▪ Level of annual government expenditure program and the ceiling of government spending for
economic and social development, national defense, general government and debt service
▪ The proper allocation of expenditures for each development activity between current operating
expenditures and capital outlay
▪ The amount set to be allocated for capital
The DBCC sets the budget ceiling consistent with the macroeconomic targets as presented in
the latest medium term development plan. Also, it determines the tolerable budget deficit and
priorities, based on the projected revenues

2. Following this, the DBM will issue a Budget Call, which defines the budget framework;
sets economic and fiscal targets; prescribes the priority thrusts and budget levels; and
spells out the guidelines and procedures, technical instructions, and the timetable for
budget preparation. The Budget Call here contains budget parameters (including
macroeconomic and fiscal targets and agency budget ceilings) as set beforehand by the
Development Budget Coordination Committee (DBCC); and policy guidelines and
procedures in the preparation and submission of agency budget proposals.

3. The various government agencies will then prepare their respective detailed budget
estimates that rank programs, projects, and activities using the capital budgeting
approach and submit these to the DBM. Budget hearings are then conducted, where
agencies justify their proposed budgets before the DBM technical panels.

Here The technical budget hearing enters

These are conducted after departments and agencies submit their Agency Budget Proposals to
the DBM. Here, agencies defend their proposed budgets before a technical panel of DBM,
based on performance indicators on output targets and absorptive capacity. DBM bureaus then
review the agency proposals and prepare recommendations.

4. After the submission of proposed expenditure programs by the respective agencies, and
the subsequent approval by the DBCC, the proposed budget is reviewed and approved
by the President and the Cabinet.
The DBM then consolidates the recommended agency budgets and recommendations
into a National Expenditure Program and a Budget of Expenditures and Sources of
Financing (BESF). As part of the consolidating process, the deliberations by the DBCC
will determine the agency and sectoral allocation of the approved total expenditure
ceiling, in line with the macroeconomic and fiscal program. Heads of major departments
are invited to this meeting.
5. After consolidating agencies’ budget proposals into the total national budget, this
undergoes further evaluation and validation within the DBM, which undertakes a
comprehensive policy review of all agency and special purpose fund budgets. The
results of this review are then sent to the DBCC for examination.
6. The proposed budget is presented by DBM, together with the DBCC, to the President
and Cabinet for further refinements or reprioritization. After the President and
Cabinet approve the proposed National Expenditure Plan, the DBM prepares and
finalizes the budget documents to be submitted to Congress.
7. The budget preparation phase ends with the submission of the proposed national
budget — the “President’s Budget” — to Congress.