Professional Documents
Culture Documents
Module 3 Quiz Essay
Module 3 Quiz Essay
Module 3 Quiz Essay
Budget preparation is the first step in the budget cycle which starts with the issuance of a
“budget call” by DBM which contains information regarding the targets, the budget ceilings, and other
guidelines in the accomplishment of the budget proposal. This is followed by budget hearings where the
proposals are deliberated, and then it is submitted to the President for review and approval. If approved, it
is then called as the “President’s Budget”, and then goes into the next step of the cycle. Budget
legislation, the second step of the cycle, encompasses the deliberations of the different components of the
legislature of the proposed budget and the scrutinization of the agencies’ proposed expenditures. If
successful, it will be ratified as a Bill and it submitted to the President for enactment which becomes the
Act. Budget execution is where the government, having an approved budget, now utilizes its government
activities. During this phase, appropriation, allotment, incurrence of obligations, and disbursement
happen. Lastly, in budget accountability, budget is monitored as it is being executed, and performance
reviews and audits are performed which help provide a basis for reforms and new policies for future
budgets.