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Lecture Notes On Philippines Budgeting
Lecture Notes On Philippines Budgeting
Lecture Notes On Philippines Budgeting
Government budget
-is the financial plan of a government for a given period, usually for a
fiscal year, which shows what its resources are, and how they will be generated
and used over the fiscal period.
- The budget is the government's key instrument for promoting its socio-
economic objectives.
- It can influence the level and direction of economic activity, including
the social and political behavior of the people
- For advance countries, the budget has become a tool for economic
growth and instrument with which to attain full employment and stability
- For less developed countries, it has become a means for economic
development, to bring about an increase in the per capita real income of the
people
-It is what the national government plans to spend for its programs and
projects, and the sources of what it projects to have as funds, either from
revenues or from borrowings with which to finance such expenditures.
Under the PPBS concept, the budget is anchored on the degree by which the
accomplishment of economic plans and the attainment of target contained in
the Medium-Term Philippine Development Plan (MTPDP) and the Medium-Term
Public Investment Program (MTPIP) are supported.
Budgetary procedure
Budget Preparation
The preparation of the annual budget involves a series of steps that begins with
the determination of the overall economic targets, expenditure levels, revenue
projection and the financing plan by the Development Budget Coordinating
Committee (DBCC).
Budget Authorization
Under the constitution the president may veto any particular item or
items of an appropriation bill. If two-third of the members of the House and the
Senate voting separately, override the veto, then the bill becomes a law as if the
president signed it
Budget Execution
4.The ARP serves as basis for the issuance of either a General Allotment
Release Order (GARO) or a Special Allotment Release Order (SARO), as the case
maybe, to authorize agencies to incur obligations.
Enactment of new laws - Within the fiscal year, new legislations with
corresponding identified new revenue sources are passed which necessitate
adjustments in the budget program.
Lecture Notes VIII Philippine Budgeting Process, Approach and Techniques
Jai Leonard I. Carinan
Accountability/Auditing
Cognizant of the fact that no propitious results can be obtained, even with
maximum funding, if agency efficiency is low and funds are wastefully spent,
systems and procedures are set in place to monitor and evaluate the
performance and cost effectiveness of agencies.
1. These activities are subsumed within the fourth and the last phase of
the budget process-the budget accountability phase. At the agency level, budget
accountability takes the form of management's review of actual performance or
work accomplishment in relation to the work targets of the agency vis-à-vis the
financial resources made available.
Budgetary Procedure
1. Budget Preparation
2. Budget Authorization
3. Budget Execution
4. Accountability and
Auditing
President
KINDS OF BUDGET
Line –Item Budget is a highly detailed budget. It is often adopted with the
idea of a greater control over expenditures. It gets its name for the fact that it
expresses each kind and quantity of expenditures and revenues as a single item
on one line of budget. The format has been criticized for being too rigid as it
poses difficulties is adapting to changing conditions that may develop during
the fiscal years. It is in contrast to the program and performance budgets which
Lecture Notes VIII Philippine Budgeting Process, Approach and Techniques
Jai Leonard I. Carinan
are more flexible in that they budget by program and performance budgets
which are more flexible in that they budget by program rather than by the
individual components of the program.
Required Reading
References:
http://www.dbm.gov.ph/dbm_publications/Primer_govt/B2.pdf