BUDGET CYCLE:

BUDGET LEGISLATION

TEAM 3 – BSA 3C
TEAM 3

▰ Armintia, Aileene S.
▰ Carasco, Aira Danica S.
▰ De Guzman, Arianne Y.
▰ Fernandez, Mary Lei M.
▰ Jose, Alyssa Ashley DC.
▰ Mendoza, Francesca Mikaela T.
▰ Reginalde, Ray Russel L.
▰ Torres, Rydan P.
▰ Yabut, Joana Joy C.
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BUDGET LEGISLATION

TEAM 3 – BSA 3C
 BUDGET LEGISLATION

 The second phase is the Budget Legislation/Authorization.

 This pertains to the whole range of legislative action on

the budget, leading to the enactment of a General
Appropriations Law for the year.

 The Philippine House of Representatives first conducts

hearings/debates on the budget.

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House Deliberations
Senate Deliberations
Bicameral Deliberations
President’s Deliberations

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 HOUSE DELIBERATIONS

 Subsequent to the receipt of President’s Budget, the House of Representatives

then hold hearings to examine the various agencies’ corresponding proposed
budgets.
 HOR’s Appropriations Committee – First Reading

 Appropriations Committee and Sub-committees – Second and Third Reading

 Afterwards, the House of Representatives prepares the General Appropriation

Bill (GAB).

 Happens August to October of Prior Fiscal Year

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 SENATE DELIBERATIONS

 After transmission, the Senate holds its own committee hearings on the GAB.

 These ordinarily start once the Senate receives the GAB from the House of
Representatives. Conversely, for practicality, hearings in the Senate start even as
Representative’s deliberations are ongoing.

 Senate’s Finance Committee and its Sub-Committees

 Happens September to November of Prior Fiscal Year

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 BICAMERAL DELIBERATIONS

 After deliberations in both houses are finished, a committee called the Bicameral
Conference Committee is formed to harmonize any conflicts between the
Representatives and Senate versions of the GAB.

 The harmonized GAB (‘Bicam’ Version) or the Conference Committee Report is

submitted back to both Houses for ratification. After ratification, the final GAB is
submitted to the President for enactment.

 Happens November to December of Prior FY

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 PRESIDENT’S ENACTMENT

 The enrolled copy of the GAB is forwarded to the President for signing. The
signed appropriations bill is finally enacted into a law which is termed as the
General Appropriations Act (GAA).

 Before enactment though, the President may exercise his veto power as conferred
to him under the Philippine Constitution.

 Happens December of Prior FY

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 RELEVANT PROVISION

1987 Philippine Constitution

- Art. VI, Sec. 25(4)

-Art. VI, Sec. 25(5)

-Art. VI, Sec. 25(7)

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 Article VI, Section 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
proposed therein.

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 Article VI, Section 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.

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 Article VI, Section 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.

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APPROVED BUDGET

TEAM 3 – BSA 3C
 APPROVED BUDGET

expenditure authority derived from appropriation laws,

government ordinances, and other decisions
The approved budget consists of the
following:
  Unified Accounts Code Structure
(UACS) Code

New General Appropriations 01

Continuing Appropriations 02
Supplement Appropriation 03
Automatic Appropriation 04
Unprogrammed Funds 05
Retained Income/Funds 06
Revolving Funds 07
Trust Receipt 08 15
APPROPRIATION

TEAM 3 – BSA 3C
 APPROPRIATION

 The authorization made by a legislative body to allocate funds for

purposes specified by the legislative or similar authority

 Money is set aside money for a specific and particular purpose

 Tell us how money or capital is being allocated

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NEW GENERAL APPROPRIATIONS

These are annual authorizations for

incurring obligations during a specified
budget year, as listed in the GAA

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 CONTINUING APPROPRIATIONS

These are the authorizations to support

obligations for a specific purpose or project,
such as multi-year construction projects which
require the incurrence of obligations even
beyond the budget year

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 SUPPLEMENTAL APPROPRIATIONS

Supplemental appropriations are the

additional appropriations authorized by law
to augment the existing original
appropriations.

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AUTOMATIC APPROPRIATIONS

Automatic appropriations are the authorizations

programmed annually or for some other period
prescribed by law which do not require periodic
action by Congress.

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 UNPROGRAMMED FUNDS

Unprogrammed Funds are standby appropriations for priority programs or projects of the

government. The utilization of Unprogrammed Funds may be approved if any of the following

conditions are met:

 Revenue collections for the year exceed targets

 New revenues not included in the original revenue targets are successfully generated,

or

 Foreign loan proceeds are generated for newly approved projects covered by

perfected loan agreements.

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 RETAINED INCOME/FUNDS

Retained Income/Funds are collections that are authorized by law to

be used directly by agencies for their operation or specific purposes. These

include but are not limited to receipts from:

 State Universities and Colleges (SUCS)

 Department of Health (DOH)

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 REVOLVING FUNDS

 UACS CODE 07

 RECEIPTS DERIVED FROM BUSINESS-TYPE ACTIVITIES

 SELF-LIQUIDATING

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 TRUST RECEIPTS

 UACS CODE 08

 RECEIPTS BY ANY GOVERNMENT AGENCY

ACTING AS TRUSTEE

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QUESTIONS

Who is the current House Speaker

Representative?

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 QUESTIONS

Its objective is to establish the accounts and

codes needed in reporting the financial
transactions of the National Government of
the Republic of the Philippines.

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 QUESTIONS

Is amendment on a bill allowed in the Third

Reading? Yes, or no? Why?

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 QUESTIONS

Can Senate start its deliberation proceeding

without the General Appropriation Bill from
the House of Representatives?

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 QUESTIONS

During Bicameral Deliberations, a committee called

the Bicameral Conference Committee is formed.
Who are the ones convened to form this
committee and for what purpose?

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QUESTIONS

It is the process when the appropriations bill is

finally enacted into a law which is termed as the
General Appropriations Act (GAA)?.

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QUESTIONS

Where does Relevant Provision of Law related to

Budget Legislation can be seen?

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QUESTIONS

Who has the power to augment according to the

law?

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QUESTIONS

Who developed the Unified Accounts Code

Standard?

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QUESTIONS

These are annual authorizations for incurring

obligations during a specified budget year.

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QUESTIONS

These are authorizations to support obligations

such as multi-year construction projects that
requires incurrence of obligation beyond the
budget year.

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QUESTIONS

What is the BTr?

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QUESTIONS

What are some items included in the Automatic

appropriations?

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 QUESTIONS

These are collections that are authorized by law to

be used directly by agencies concerned for their
operation or specific purposes?

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QUESTIONS

These are standby appropriations authorized by

the congress which can be availed if certain
conditions are met.

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QUESTIONS

What is a self-liquidating fund which receipts are

deriving from legally authorized business-type
activities done by departments or agencies?

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QUESTIONS

These are trust funds on which a government

agency is acting as the trustee.

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THANK YOU FOR
LISTENING!

TEAM 3 – BSA 3C