Budget

Preparation
Budget
Execution

Budget Budget
Legislation Accountability

The Budget
Process
MPA 203 Local Governance & Administration
 Four Phases of the Budget Process
Budget
Preparation

Budget Budget
Accountability Legislation

Budget
Execution

Government Budgeting
 BUDGET PROCESS
BUDGET
PREPARATION
Jan.-July

BUDGET BUDGET
ACCOUNTABILITY LEGISLATION

BUDGET
EXECUTION
 Budget Preparation
President Submits
Budget Proposal
Budget Budget to Congress
Call Consolidation

DBCC
approves Budget Approval by
budget Hearings President
parameters Cut-off for
Inclusion of Items and Cabinet
in Budget
Proposal

Government Budgeting
Development Budget Coordination
Committee

resource resource overall monetary Presidential

allocation generation economic measures oversight
and and debt policy and
management management policies
 Budget Legislation
House Senate Bicameral
Hearings/ Hearings/ Conferenc
Debate Debate e
Committee

House
President
Approval & Senate
Signs
Submission to Approval
into Law
Senate

Government Budgeting
 Budget Legislation

NEP GAB GAA

Congress enacts appropriation bill (GAB)

and President signs it into law(GAA)

Government Budgeting
 ARTI CLE VI , S ECTI ON 25 of t he
Constitution

7. “ If, by the end of any fiscal year, the Congress

shall have failed to pass the general
appropriations bill for the ensuing fiscal year, the
general appropriations law for the preceding
fiscal year shall be deemed reenacted and shall
remain in force and effect until the general
appropriations bill is passed by the Congress.”

Government Budgeting
 President’s Veto Power

“The President shall have the power to veto any

particular item or items in an appropriation,
revenue or tariff bill, but the veto shall not
affect the item or items to which he does not
object to.”
Section 27(2), Article VI
Philippine Constitution

Government Budgeting
 Budget Execution
 DBM releases funds

Agencies implement project/ activity

Government Budgeting
 Budget Execution

AGENCY Agency
prepares implements
MDP

AUDITING &
DBM releases ACCOUNTING
GARO & NCA RULES AND
REGULATIONS
11
 HOW FUNDS ARERELEASED?
1. To authorize the agency to enter into obligation or
commitment :
• GAAas released Documents
Department/Agency/By Program,Project,Activity
further segregated into Not Needing Clearance
(NNC) and Needing Clearance (NC)
• General /Special Allotment Release Order GARO/
(SARO)
– released showing the purpose, by
allotment/object class, in pesoamounts;

Government Budgeting
 HOW FUNDS ARERELEASED…
To obligate and pay expenses
Notice of CashAllocation(NCA)
– the initial NCAis released automatically to
cover the first semesterrequirements;
– common fund concept, that is,allotment
class or projects are not specified in the
NCA;

Government Budgeting
 HOW FUNDS ARERELEASED…

To obligate andpay expenses . . . .

*Approved work and financial plan
*Availability of Allotment
*Subject to accounting and auditing Rules
and regulations ex. Tax withheld

Government Budgeting
 Budget Accountability
Agency submits monthly/quarterly/annually
Financial Accountability Reports (FAR) to DBM

DBM assesses agency performance against

targets and financial accomplishment
(Budget Utilization) - Obligations and
Disbursements
 Rationale/Purpose

• Monitor the efficiency ofgovernment’s

fund utilization - GDP
• Assess agency performance
• Provide a vital basis for sound
decision and policy making for rational
allocation of scarceresources
Source: