(DBM)

DEPARTMENT OF BUDGET AND

MANAGEMENT
BRIEF HISTORY OF DBM

The Budget Commission was established by Executive Order (EO) No. 25 on April 25,
1936.

First Budget Law was passed on December 17, 1937 as Commonwealth Act (CA) No. 246.
It took effect on January 1, 1938
BRIEF HISTORY OF DBM
On June 4, 1954, RA No. 992, otherwise called the Revised Budget Act, was
enacted providing for an enhanced role of the Budget Commission as the
fiscal arm and budgeting adviser of the President.

Parliamentary form of government was instituted by the 1973 Constitution.
The minister in charge of the budget, chairing the Committee on
Appropriations and Reorganization. Through the Budget Reform Decree of
1977, the planning, programming and budgeting linkages of the Ministry was
further strengthened.
BRIEF HISTORY OF DBM
EO No. 292, issued pursuant to the 1987 Constitution, provided
for major organizational subdivisions of the Department of
Budget and Management

At present, their extraordinary operations in the previous years is
a very hot issue.

Disbursement Acceleration Program (DAP)
Priority Development Assistance Fund (PDAF)

MANDATE
The Department of Budget and Management, created under
Executive Order No. 25 dated April 25, 1936, is mandated under this
Order and by subsequent issuances to promote the sound, efficient
and effective management and utilization of government resources
(i.e., technological, manpower, physical and financial) as instrument in
the achievement of national socioeconomic and political development
goals.
INVOLVEMENT IN POLICY FRAMEWORK
Government budgeting is the critical exercise of allocating revenues and
borrowed funds to attain the economic and social goals of the country. It
also entails the management of government expenditures in such a way
that will create the most economic impact from the production and
delivery of goods and services while supporting a healthy fiscal position.
Government budgeting is important because it enables the government to
plan and manage its financial resources to support the implementation of
various programs and projects that best promote the development of the
country. Through the budget, the government can prioritize and put
into action its plants, programs and policies within the constraints
of its financial capability as dictated by economic conditions
CONTRIBUTION TO NATIONAL DEVELOPMENT
Fiscal Sustainability
Government avoids debt accumulation, is able to roll over
its debt and there is no risk of insolvency.

Effective Resource Allocation
Government distributes the budget to different branches
the BEST possible way.

Efficient Government Operation
Government satisfies its employees.
The end