Intergovernmental relations defined as an

interacting network of institutions at national,

provincial, and local levels, created and refined
to enable the various parts of government to
cohere in a manner more or less appropriate to
the institutional arrangements
Budgeting is the process of creating
a plan to spend your money. This
spending plan is called a budget.
Creating this spending plan allows
you to determine in advance
whether you will have enough
money to do the things you need
to do or would like to do.
Budgeting is simply balancing your
expenses with your income.
 1. Province
• it is the largest unit in the political structure of the
Philippines
• Consists in varying numbers of municipalities and in some
Political cases, of component cities
Subdivisions
have the power 2. City-3 classes of cities in the Philippines;
to tax • The highly urbanized
• The independent component cities which are
independent of the province
• Component cities which are part of the provinces where
they are located and subject to their administrative
supervision
 3. Municipality
•A political corporate which is endowed with the
facilities of a municipal corporation
•It consists of a number of barangays within its territorial
boundaries
Political Subdivisions
have the power to 4. Barangay
tax •The smallest political unit and the basic unit of the
Philippine political system
•Consists of less than 1,000 inhabitants residing within
the territorial limit
•Administered by a set of elective officials headed by a
barangay captain
• Basic Real Property Tax (Sec. 232)
• Special Education Fund (Sec. 235)
• Land Transfer Tax (Sec. 135)
• Public Land Use Tax (Sec. 236)
• Land Sale of Foreclosed Real Properties
(Sec. 257, 258, 260)
• Land Development Permit Fee (Sec.557 & 558)
• Tax on Sand, Gravel & other Quarry Products
• (Sec. 138)
• Business Tax (Sec. 143)
• Community Tax (Sec 156)
• Franchise Tax (137)
• Tax on Business of Printing and Publication
(Sec. 136)
• Professional Tax (Sec. 139)
• Amusement Tax (Sec. 140)
• Annual Fixed Tax on Delivery Trucks or Vans
(Sec. 141)
• Fishery Rentals and Charges (Sec. 149)
• Special Levy (Sec. 250)
• Public Utility Charges (Sec. 155)
• Share in Mining, Fishery and Forestry Taxes
(Sec. 290)
• Share in the Gross Sales or Taxes of
Government-Owned and Controlled
Corporations (Sec. 291)
• Congressional Funds
• Financial Investment (Sec. 18
THE BUDGET PROCESS IN LOCAL GOVERNMENT
The Budget
Preparation
 The
Budget Preparation
 The
Budget Preparation

Current operating
expenditure
 specific
expenditure
requirements
Budget Authorization

What is budget authorization?

 DBM
•Cities and municipalities
within Metro Manila
•Highly urbanized cities and
independent components
cities and provinces

Sangguniang
Panlungsod/Bayan Submission of the
•Component
Barangays
Sangguniang Panlalawigan for budget
•Component Cities
•Municipalities
Is required within
10 days
• For compliance with budgetary
requirements and general
limitations
• As provided for in the LGU
code and its implementing
rules and regulations

For consistency with the local

Development plan
 Appropriation
ordinances
are to be reviewed
within 90 days

Appropriation
ordinance for
barangay
are to be reviewed
within 60 days
 The review action by the
reviewing authority may lead
to either
the declaration
of the budget as to the
following:
 Financial Plan
Work Plan •Provides funding
•Basis for programming support for the work
This phase involves the
finances under the
release and actual
financial plan plan and becomes
disbursement
of funds for the identified and requests for the basis for
functions-
allotment allotments.
Work and Financial Plan
and Request for allotment
BUDGET EXECUTION
Final phase of the budget process
• Recording &reporting actual income
and expenditures
• Evaluation of the performance of the local
government unit vis-à-vis planned targets
•No appropriation shall be transferred from one
item to another-Ano po meaning nito?
1. BUDGET PREPARATION
Expenditure Items

•Mandatory contribution (required prior to

the code’s effectivity
•Social security and insurance benefits of
employees
•Reserve money for earned leave credits of
retiring employees
•Gratuities of employees that are
optionally retiring
•Personal services
 2. BUDGET AUTHORIZATION

•Conflicts between the executive and

Issues and Challenges
in the Budget Process legislative branches of the local
government cause the delay of the passage
of the budget (opposing political
camps/party)
3. BUDGET REVIEW

•Change in the process of review of

appropriation led to non-conformity of
review actions and decisions
•Some Sanggunian would authorize
anything appropriated by lower level of
local units for political purposes
•Failure to submit supporting documents
on time
 4. BUDGET EXECUTION

•Non-submission of work and financial plan

and request for allotments by the heads of
Issues and Challenges
departments or offices
in the Budget Process
•Non-submission of supporting documents
for the request for allotments
•Use of appropriated funds or savings
 5. BUDGET ACCOUNTABILITY

•Delayed submission of financial

statements to the local finance committee
by the local accountant
•LGU failed to prepare development
Issues and Challenges
programs for the 20% Development Plan
in the Budget Process •LGU appropriated funds for development
projects less than level of appropriation
required
•LGU’s failed to implementor complete
projects programmed under the fund
5. BUDGET ACCOUNTABILITY

•Incurrence of cash drafts due to improper

use of trust funds
•Disbursements which lead to
disallowances after audit
•Failure by LGUs conduct periodic physical
Inventory or to maintain complete
property records
•Failure to liquidate cash advances, thus
making those advance accumulate through
the years
 FISCAL PERFORMANCE
OF LOCAL GOVERNMENT
IN THE PHILIPPINES
References
https://www.slideshare.net/jobitonio/local-fiscal-administration-139655182

https://www.slideshare.net/edzmhar0186/local-fiscal-administration24130063?next_slideshow=1

https://www.slideshare.net/clarencejoy/lgu-budgeting-process

httpshttps://www.slideshare.net/clarencejoy/lgu-budgeting-process://www.slideshare.net/clarencejoy/lgu-budgeting-
process
https://www.slideshare.net/ZERODELTA/budget-process-of-the-philippine-national-government
THANK YOU