Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Office of the Vice President for Academic Affairs
COLLEGE OF ACCOUNTANCY AND FINANCE

Instructions:
1. Download Module 1-Assignment 2_Budget Process file from Assignment tab.
2. Save as: Answers to Module 1- Assignment 2_Budget Process.
3. Watch the video.
4. Write/Type your answer after each question. (Refer to the Rubrics)
5. Turn in your Answers to Module 1- Assignment 2_Budget Process file on or
before due date.

Watch:

• Philippine Budget Process (https://www.youtube.com/watch?v=OUbUC94oa6s)

Questions:

1. What is government budgeting?

Government budgeting is the practice of allocating government’s revenues

and borrowings to achieve the economic and social goals of the country. It also
involves the effective management of government expenditures that will help to
attain healthy fiscal position.

2. Why is government budgeting important?

Government budgeting is essential as it enables the government to manage

its financial resources to support the implementation of projects that will support the
development of the country. It also helps in maximizing the limited financial
resources subject to the constraint of its financial capability.

3. What are the major processes involved in national government budgeting?

The major processes have four phases, namely:

1. Budget Preparation – It is the process wherein the President submits the

proposed budget to the congress after series of steps (refer to the answer to
question number 4).
2. Budget Legislation – It is the process wherein the proposed budget is being
legalized. Upon receipt of the approved proposed budget by the President, the
House of Representatives, Senate, and Bicameral Conference Committee make
their own deliberations of the approved proposed budget and then submitted to
the President for enactment.
3. Budget Execution – The process where the government funds are spent.

4. How is the annual budget prepared?

1. Budget Call – The annual budget preparation begins when the Department of
Budget and Management (DBM) issues a budget call to all government agencies.
The budget call contains the next fiscal year’s targets, budget ceiling of the
agency, and other guidelines in the completion and submission of agency budget
proposals.
2. Budget Hearing – After the agencies submit their budget proposals, budget
hearings are being conducted. Agencies defend their budget proposal before the
 DBM. The DBM studies the budget proposals, make recommendations, and
merges the studied proposals into the National Expenditure Program (NEP) and
Budget of Expenditures and Sources of Financing (BESF). The DBM then
submits the proposed budget to the President.
3. Presentation to the Office of the President – The Proposed budget are being
reviewed by the President and Cabinet members. After approval of the proposed
budget by the President, the DBM finalizes the budget documents to be
submitted to Congress.

5. What mechanism ensure that funds have been properly allocated and spent?
6. What is the role of the following agencies to ensure that funds have been properly
allocated and spent?