OBJECTIVES OF THIS

SESSION
Gain an appreciation/ understanding of:
the national government budget;
the elements of a good budget;
the processes and the players involved;
the various budget documents; and
The linkage of the national government budget to that of CSC

budget

Encourage the participants to prepare the budget of

appropriate and correct their offices.

WHAT IS A NATIONAL
GOVERNMENT BUDGET?
Financial plan that shows the national objectives, strategies

and programs

An estimate of the income and expenditures of government

WHAT IS A GOOD
BUDGET
Aggregate fiscal discipline
Allocative Efficiency
Technical Efficiency

AGGREGATE FISCAL
DISCIPLINE
Hard control on the level of spending
Putting a leash on the budget deficit

ALLOCATIVE EFFICIENCY
Spending on the RIGHT THINGS
Setting the priorities straight

TECHNICAL EFFICIENCY
Spending at the RIGHT COSTS
Producing more with less cost

THE BUDGET PROCESS

The process which the national government budget is
planned and prepared
evolves into a law
implemented
accounted for

PHASES OF BUDGET
PROCESS (CYCLE)

PHASES OF BUDGET
PROCESS (CYCLE)

Year 2

10

BUDGET PREPARATION
DBM issues the Budget Call to NGAs, GOCCs and LGUs
Agencies prepare their budget proposal
DBM and agencies meet in Technical Budget Hearings
DBM presents the budget proposal to the President of the

Philippines

11

BUDGET PREPARATION
Ends when the Presidents Budget is submitted to the House of

Representatives

Budget documents
Presidents Budget Message
National Expenditure Program (NEP)
Budget of Expenditures and Sources of Financing (BESF)
Staffing Summary
Organizational Performance Indicators Framework (OPIF)
Details of Selected Programs and Projects
Technical Notes
12

PRESIDENTS BUDGET
The Presidents Budget for FY 2015 was submitted on 29 July

2014.

Constitutional deadline: 25 August

Theme for 2015 Budget Kaunlaran Para sa Lahat

13

MACROECONOMIC
ASSUMPTIONS

Source: National Budget Memorandum 119 (December 27, 2013)

14

BUDGET AGGREGATES

15

BUDGET
AUTHORIZATION (1)
Committee on Appropriations of the House of Representatives

conducts hearings

Plenary of House of Representatives engages in budget debates

General Appropriations Bill (House version) is transmitted to the

Senate of the Philippines

16

FY 2013 2015
COMPARATIVE BUDGET
(P000)

Expenses Class

FY 2013 FY 2014

FY 2015

PROPOSAL

NEP

GAA

PS*

735,031

739,640

4,952

739,667

739,667

MOOE

111,950

169,659

265,654

177,626

177,626

26,950

26,650

31,550

31,550

31,550

2,427

201,041

146,907

88,676

88,676

876,358

1,137,29
0

1,209,063

1,037,519

1,037,519

LFA- ARTA
CO
Total

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*Net of RLIP

CSC BUDGET FOR FY

2015 (NEP)
(AMOUNTS
IN NEP
THOUSAND PESOS)
Expenses
Class
739,667*

PS
MOOE

209,176

88,676

CO
Total

1,037,519
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BUDGET
AUTHORIZATION (2)
Finance Committee of the Senate conducts hearings
Entire Senate debates on the budget
Senate comes up with the amended (Senate) version of the GAB
Joint Bicameral Committee deliberates
Both Houses of Congress votes on the GAB

19

BUDGET
AUTHORIZATION (3)
The President may approve the GAB and signs into law General

Appropriations Act or GAA

The President may exercise his veto power partially or en toto

Failure to enact a law on or before December 31, the preceding
years budget is considered re-enacted.

20

BUDGET EXECUTION
GAA provides national government agencies (NGAs) the authority

to spend

Likewise, there are expense items covered by Automatic

Appropriations, e.g. IRA, RLIP

DBM issues guidelines on releases of funds

Allotment and Cash Release Programs are set

21

BUDGET EXECUTION
DBM issues obligational and disbursement authorities to

government agencies

For 2015, DBM has issued GARO No. 2014 - 1

Agencies implement programs and projects using as basis the

authorities issued by DBM

22

BUDGET
ACCOUNTABILITY
Reports -- BEDs and BARs -- required by DBM from government

agencies [NBC 907 & 907A]

Conduct of Agency Performance Review to determine level of

performance of each agency, in terms of physical outputs and

actual expenditures incurred vs. targets

23

BUDGET
ACCOUNTABILITY

24

BUDGET
ACCOUNTABILITY
Agency Performance Review is a tool to:
determine the need for additional release of funds (budget

execution)

measure agency performance (budget accountability)

know the appropriate level of agency budget (budget

preparation)

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