Department of Budget and Management

(DBM) (Philippines)
Following are the general functions of the Department:

 Formulates the overall resource application strategy to match the government’s macro-
economic policy;
 Prepares the medium-term expenditure plan, indicating the programming, prioritization,
and financing of capital investment and current operating expenditure requirements of
medium-term sectoral development plans;
 Undertakes the formulation of the annual national budget in a way that ensures the
appropriate prioritization and allocation of funds to support the annual program of
government;
 Develops and administers a national accounting system essential to fiscal management
and control;
 Conducts a continuing study of the bureaucracy and assesses as well as makes policy
recommendation on its role, size, composition, structure and functions to establish a
government bureaucracy imbued with a spirit of public service;
 Establishes the rules and procedures for the management of government organization
resources i.e., physical, manpower and other resources, formulates standards of
organizational program performance; and undertakes or provides services in work
simplification or streamlining of systems and procedures to improve efficiency and
effectiveness in government operations;
 Conceptualizes and administers the government’s compensation and position
classification plan; and
 Monitors and assesses the physical as well as the financial operations of local
government units and Government-Owned and/or  Controlled Corporations.

 The Department of Budget and Management shall lead public expenditure management to
ensure the equitable, prudent, transparent and accountable allocation and use of public
funds to improve the quality of life of each and every Filipino.

The DBM conceptualizes and administers the government's compensation and position
classification plan; and. Monitors and assesses the physical as well as the financial operations of
local government units and Government-Owned and/or Controlled Corporations.
The DBM reviews the corporate operating budgets of GOCCs and ensures the proper
allocation of cash. The DBM likewise formulates and recommends the budget policy covering
the allowable deficit and the criteria for the determination of the appropriate subsidy and equity
of GOCCs.