DEPARTMENT

OF BUDGET
AND
MANAGEMENT
MANDATE, VISION,
& MISSION
 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 as
instrument in the achievement of national socioeconomic and political development goals.
 VISION

By 2020, it envisions to be:

A champion of results-oriented budget and management policies and practices that

empowers the poor and the marginalized. To implement a world-class budget management
systems that enhance transparency in governance, and to be composed of public servants
with high standards of professionalism and integrity
 MISSION

Lead public expenditure management to ensure the equitable, prudent, transparent and
accountable allocation and use of public funds to improve the quality of life of each and
every Filipino.
BRIEF HISTORY

Commonwealth Act No. 246 (line-item budgeting) “Budget Commission”

Revised Budget Act of 1954 (budgetary programs)
Reorganization Act of 1954 (Government Survey and Reorganization Commission)
Integrated Reorganization Plan of  1972 (reorganization of the Executive Branch)
Budget Reform Decree of 1977 (Ministry of the Budget)
 PD. NO. 1405 “Ministry of the Budget”
 Executive Order No. 711 “Office of Budget and Management”

Revised Administrative Code of 1987

 Commonwealth Act No. 246
(Budget Commission)
Effective as of: January 1, 1938
Provided for a line-item budget as the framework of the government’s budgeting system.

Line-item budget is a budget in which the individual financial statement items are grouped
by departments. It shows the comparison between the financial data for the past, and future
accounting period
 Revised Budget Act of 1954 & Reorganization Act
of 1954
(Budget Commission)

Effective as of: June 4, 1954

Introduced the performance budgeting system and put emphasis on budgetary programs and
activities.

Performance budgeting system is allocation of funds and resources are based on potential
results. It focuses more on the output and outcomes.
 Integrated Reorganization Plan of  1972
(Budget Commission)
Effective as of: September 24, 1972
Reorganized the Executive branch extensively, The Budget Commission remained under the
President (Ferdinand Marcos) for administrative policy and program coordination.
 Budget Reform Decree of 1977
(Budget Commission)
Effective as of: July 30, 1977
Strengthened the planning, programming, and budgeting linkages; and introduced a
regionalized budget supportive of a region-based government structure.

Prescribed the form, content, and manner of preparing the budget.

 Presidential Decree No. 1405
(Ministry of Budget)
Effective as of: June 11, 1978
Converted the Budget Commission into the Ministry of the Budget and gave its head the
rank and status of a Minister and member of the Cabinet. Under the parliamentary form of
government, the Minister of the Budget automatically chaired the Committee on
Appropriations and Reorganization in the Batasang Pambansa.
 Executive Order No. 711
(Office of Budget and Management)

Effective as of: July 28, 1981

Issued to rename the Ministry of Budget into the Office of Budget and Management
(OBM), its head retaining the rank of a Cabinet member for the purpose of minimizing
the number of ministries.
 Revised Administrative Code of 1987
(Department of Budget and Management)

Effective as of: July 25, 1987

Provided for major organizational subdivisions of the OBM which has been converted into
the Department of Budget and Management. It likewise stipulated the Department’s
responsibilities which are still being followed to this day.
List of Secretaries of the DBM
NAME OF SECRETARY TERM BEGAN TERM ENDED PERIOD

Guillermo Carague March 13, 1987 February 12, 1992 Corazon Aquino

Salvador Enriquez, Jr. February 12, 1992 June 30, 1992 Corazon Aquino

Emilia Boncodin February 1, 1998 June 30, 1998 Fidel Ramos

Benjamin Diokno June 30, 1998 January 20, 2001 Joseph Ejercito Estrada

Emilia Boncodin January 23, 2001 July 8, 2005 Gloria Macapagal-Arroyo

Romulo Neri July 19, 2005 February 15, 2006 Gloria Macapagal-Arroyo

Rolando Andaya, Jr. February 15, 2006 February 24, 2010 Gloria Macapagal-Arroyo

Joaquin Lagonera March 8, 2010 June 30, 2010 Gloria Macapagal-Arroyo

Florencio Abad June 30, 2010 June 30, 2016 Benigno S. Aquino III

Benjamin Diokno June 30, 2016 Incumbent Rodrigo Roa Duterte

SECRETARY
Benjamin Estoista Diokno
Secretary Benjamin Diokno

He is born on March 31, 1948 (currently 69 years old).

He received his bachelor’s degree in Public Administration in the University of the
Philippines, a master’s degree in Public Administration in 1970 and Economics in 1974.
He also has a Master of Arts in Political Economy in 1976 from the Johns Hopkins
University in Baltimore, Maryland, USA and a Ph.D. in Economics (1981) from the
Maxwell School of Citizenship and Public Affairs, Syracuse University in Syracuse,
New York, USA.
Secretary Benjamin Diokno

He served under this department for 3 terms already.

First is that he served as an Undersecretary for Budget Operations at the Department of
Budget and Management for President Corazon Aquino. Under President Aquino, he helped
design the Tax Reform Program of 1986 in which it simplified the income tax and imposed
the Value Added tax
He also served under President Estrada’s term, he served as the secretary of DBM in his
term. Under the Estrada administration, Diokno initiated several reforms that would
enhance transparency and improve the efficiency of the delivery of government services.
He also instituted the “what you see is what you get” policy; it is a simplified system of
fund release for the General Appropriations Act.
Secretary Benjamin Diokno

Currently, under President Duterte, he intends to pursue an expansionary fiscal policy to

finance investments in human capital development and public infrastructure. He also seeks
to pass the Budget Reform Bill, a measure that seeks to modernize budgetary practices in
the Philippines. It is an encompassing reform initiative covering the entire budget process –
from budget planning, to budget execution, tracking, and so forth.
Problems Encountered

One of the problems encountered by this department is caused by its effort to reduce
poverty which contributed to an unsustainable budget deficit. Trying to improve the
economic condition of the country requires a diligent effort in the allocation of government
funds, which naturally can’t be perfected because of the everchanging economy and
condition of the Philippines.
Solutions

The Government’s economic managers believe that a medium-term expenditure

framework is the key to achieving fiscal discipline, strategic prioritization of resources,
and better operating efficiencies over the medium term.

MTEF is a framework for managing the deficit and allowing the Government to allocate
more resources to programs that demonstrate effectiveness in poverty reduction
Organizational Performance Indicator

Organizational Performance Indicator Framework seeks to provide or give a common

reference material and a set of quality standards in the use of OPIF as a system for
achieving the outputs and outcomes from public spending
Organizational Performance Indicator

The 3 key performance indicator are:

Fiscal Discipline - living within the means or resources available to the government
Allocative Efficiency - spending money on the right things or right priorities;
Operational Efficiency - obtaining the best value for the money or resources available.
Organizational Performance Indicator

We can say that the government has done well if the government pursues to improve its
results focus to attain national development and sector outcomes during budget preparation
and execution. One of the performance indicator as well is when the department is getting
the most value for the money in the way they provide the goods and services to the public.
Major Final Outputs

These are the service that a department is mandated to deliver through the implementation
of programs:

Budget and management policy services

Agency budget and management services
Budget release services
Performance monitoring and evaluation services
 Budget of the DBM
PHP 2,500,000,000.00

PHP 2,000,000,000.00

PHP 1,500,000,000.00

PHP 1,000,000,000.00

PHP 500,000,000.00

PHP 0.00
9 98 999 000 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018
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