Expenditure of

Funds &
Public
Borrowing
Group 6
 BUDGET
It is a plan for spending and
saving money based on income
and expenses over a certain
period of time
Budget also is a help to
track on how much money
you make, how much you
spend, how much you save,
and what you spending on

How to save money:

50/30/20 rule
BUDGET
Government Budget
is forecast by a government of its expenditures and
revenues for a specific period of time. In general, a
government budget is the financial plan of a
government for a given period, usually for a fiscal
year, which shows what its resources are, and how
they will be generated and used over the fiscal
period. The budget is the government's key
instrument for promoting its socio-economic
objectives

National Budget
is the government’s estimate of spending and
revenue for each fiscal year. The revenue for most
governments comes from taxes. These include
taxes on family incomes, business profit, and
imports. there are taxes on activities such as
gasoline and road users tax, to pay for relatives
activities such as building roads
 Elements of Budgeting

Income 1

2 Expenses

Savings 3

4 Debt
Paymen
Asset 5 t
 National Budget
• is also referred to as the government’s budget

0 0 0
1 2 3

Balanced
Surplus Budget Deficit Budget
Budget
A government budget If anticipated If the estimated
is considered balanced government revenues government spending
if the anticipated exceed anticipated exceeds the anticipated
government revenue government expenses government revenue in
for a given fiscal year in a given fiscal year, a given fiscal year, the
equals the forecasted the budget is budget is said to be in
government considered to be in deficit.
expenditure. surplus
 Budgetary Procedures
Budget Preparation
this phase involves the formulation of estimates of revenues and expenditures by
the Executive Departments and Agencies. In preparing the annual budget proposal;
the said department makes an estimation of government revenues. It then
determines the budget priorities within available revenues and borrowing limits.
Finally, it translates these approved priorities into expenditures.

The main agency involved is the Development Budget Coordination

Committee (DBCC) composed of the following agencies is as follows:

a. The Department of Budget and Management

b. The Department of Finance
c. The National Economic and Development Authority (NEDA)
d. The Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
e. The Office of the President of the Philippines
 Budgetary Procedures
Budget Legislation/Authorization
this pertains to the whole range of legislative action on the budget, leading to the
enactment of a General Appropriations Law for the year. The Philippine House of
Representatives first conducts hearings/debates on the budget.

1. Committee Budget Hearings Standing Committees (sometimes referred to as the

Mother Committee/Committee Proper)
2. Printing of General Appropriations Bill (GAB)
3. Executive Meeting of the Committee:
4. Sponsorship and Plenary Deliberations
5. Approval on 2nd Reading of the GAB:
6. Amendments, Finalization & Printing of the GAB for 3rd Reading
7. Approval of the GAB on 3rd Reading:
8. Transmittal of the 3rd Reading Copy of the GAB to the Philippine Senate:
9. Bicameral (Bicam for short) Conference Committee:
10. Approval of the Bicam Report
11. Finalization and Printing of the Enrolled Copy of the GAB:
12. Signing of the Enrolled Copy of the GAB
 Budgetary Procedures
Budget Execution/Implementation
Budget execution covers the allotment of appropriations by the central budget
authority to and the incurrence of obligations by, the spending departments and
agencies of government. The steps in the execution of the budget are:

1. Release of the funds by the Department of Budget and Management (DBM)

2. Implementation of the various programs and activities by the different

government agencies
 Budgetary Procedures
Budget Accountability & Review

This involved the reporting of actual performance against plans or

targets, and it involves the Monitoring of agency budgetary
performance, Comparison and evaluation of actual performance
with the initially-approved work targets, A summary list of checks
issued is submitted on a monthly basis and the Physical & Financial
Report of operations is submitted on a quarterly basis in the form of
a trial balance
 Government Budgeting
• is the critical exercise of allocating revenues and borrowed funds to
attain the economic and social goals of the country
• The government budget also refers to the income, expenditures and sources of
borrowings of the National Government (NG) that are used to achieve national
objectives, strategies and programs.
 Importance of Government Budgeting

• Government budgeting is important because it enables the government to plan

and manage its financial resources to support the implementation of various
programs and projects that best promote the development of the country
 Public Borrowing

PUBLIC BORROWING

According to the Cambridge English

Dictionary, public borrowing is the amount 02
01
that the government borrows, or the act of
borrowing this money. 04

03
 Public Borrowing

Public
Debt
Public debt means it is the total
amount of money that is owed to the
01 02
public by the government to meet the
development funds.
04

In public finance, it is also known as

public interest, government debt,
national debt and sovereign debt. 03
 Types of Public Debt

INTERNAL AND EXTERNAL DEBT

The government’s borrowing within the country is known as internal debt. On the
other hand, the government’s borrowing from abroad or international is known as
external debt

PRODUCTIVE AND UNPRODUCTIVE DEBT

• If the loan is financed for projects that will bring revenue to the government is
known as productive debt.
• When the loans are a net burden on the community, they are known as
unproductive debts.
 Types of Public Debt

COMPULSORY AND VOLUNTARY DEBT

• Loans that are raised due to the government’s borrowing from the public by using coercive
methods are known as compulsory debt—for example, the taxes paid by the public.
• The members of the public and institutions like commercial banks can subscribe to the
securities issued by the government loans, which is known as voluntary debt. For example,
the public borrowings.

REDEEMABLE AND UNREDEEMABLE DEBT

• The debt that the government repays after a fixed period is known as redeemable debt. To sell
securities to the public, the government borrows money from them. The interest on this debt is
paid irregularly.
• The debt that has no promised date of repayment by the government is known as irredeemable
debt. Therefore, the interest paid may be regular. But such borrowings are not reported by the
 Public Borrowing
PUBLIC DEBT
MANAGEMENT
The objective of the management of the public debt
refers to the aim and methods of borrowing funds
and the repayment of loans by the government
should not have adverse effects on the economic
situation of the country. 01 02
SIGNIFICANCE OF
METHODS OF PUBLIC DEBT 04
MANAGEMENT
1. Methods of borrowing funds and repayment of
loans should help to maintain economic stability.
2. The role of public debt management would be to
adopt methods which may not cause inflation or 03
deflation.
 QUIZ
1 – 5. Give the 5 elements of budget .
6 – 9. Enumerate the 4 types of public
debt.
10. Ano buong pangalan ni Ma'am Daisy?
 Thnx..

01 02
Abe, Ryuji
Ibe, Roby Emmanuel 04
Hina, Lynea Ryziel
Malig, Rein Justin
Paraiso, Jonalyn
Surio, Justine Catherine

03