The Budget Process of the Philippine National Budget

The Budget Cycle

I. Budget Preparation, uses bottom-up approach and zero-based budgeting
1. Budget call from the DBM
2. Budget hearings of the budget proposals from agencies before the DBM, making
recommendations after their deliberation and consolidates these to the NEP and BESF
3. Presentation to the Office of the President which includes the President and his Cabinet
members, the President approves the budget which the DBM finalizes and submits to
Congress wherein the proposed budget is now called “President’s Budget”
II. Budget Legislation, due process to legalize the proposed budget
4. House Deliberations in the House of Representatives which then prepares the GAB
5. Senate Deliberations on the GAB from the House of Representatives; however, for
expediency, hearings in the Senate start even as deliberations in the House of
Representatives are ongoing
6. Bicameral Deliberations in the Bicameral Conference Committee where deliberations to
harmonize both houses’ versions of the GAB and submits the harmonized GAB back to
them; after ratification, the final GAB is submitted to the President for reenactment
7. President’s enactment now known as the GAA or he may exercise his veto
i. New General Appropriations
ii. Continuing Appropriations
iii. Supplemental Appropriations
iv. Automatic Appropriations
v. Unprogrammed Funds
vi. Retained Income/Funds
vii. Revolving Funds
viii. Trust Receipts
III. Budget Execution
8. Release guidelines and BEDs, DBM releases guidelines while agencies submit BEDs
including (a) Physical and financial plan, (b) Monthly cash program, (c) Estimate of
monthly income, and (d) List of obligations that are not yet due and demandable; major
recipients (a) NGAs, (b) LGUs, (c) GOCCs
9. Allotment, DBM formulates ARP and CRP; documents needed (a) GAARD, (b) SARO,
(c) GARO
10. Incurrence of Obligations
11. Disbursement Authority given by DBM to gov’t agencies; documents needed (a) NCA,
(b) Notice of Transfer of Allocation, (c) Non-Cash Availment Authority, (d) Cash
Disbursement Ceiling
IV. Budget Accountability
12. Budget Accountability Reports, (a) Monthly Report of Disbursements, (b) Quarterly
Physical Report of Operation, (c) Statement of Appropriations, Allotments, Obligations,
Disbursements and Balances, (d) Summary of Appropriations, Allotments, Obligations,
Disbursements and Balances by Object of Expenditures, (e) List of Allotments and
Sub-Allotments, (f) Statement of Approved Budget, Utilizations, Disbursements and
Balances, (g) Summary of Approved Budget, Utilizations, Disbursements and Balances
by Object of Expenditures, (h) Quarterly Report of Revenue and Other Receipts
13. Performance Reviews from DBM and COA
14. Audit by COA