THE PHILIPPINE BUDGETARY

PROCESS
Reporter:

PHILIPPINE NATIONAL BUDGET

------ CONCEPT

It

is a financial plan to pursue priority

programs
&
projects
of
the
government in line with its economic
growth & human development thrusts.

It

is
an
instrument
for
good
governance, as government agencies
are accountable for the delivery of
measurable results through their
respective budgets.

PHILIPPINE NATIONAL BUDGET

------ CONCEPT

The

financial blueprint of the

countrys development plan.

Purpose
To

ensure that public resources are

managed more efficiently and with the
greatest degree of discipline.

PHILIPPINE BUDGETARY PROCESSS LEGAL BASIS

Section 22, Article VII of the 1987 Constitution sets the

tone for the budgetary process.

The procedure in the preparation of the national budget is

regulated by law. On or before October 20 of each year,
each department secretary submits to Department of
Budget the estimated income and expenditures of the
bureaus and offices under his department for the next fiscal
year.

Upon receipt of all budget estimates of income and

expenditures, the Department of Budget and Management
prepares the national budget.

Prior to this, however, the Budget secretary can

investigate, revise, examine, assemble, coordinate, and
reduce or increase the budget estimates of the different
departments, bureaus and offices of the government.

PHILIPPINE BUDGETARY PROCESSS LEGAL BASIS

After preparing the budget, the Budget secretary submits it

to the President, who in turn submits it to Congress within
30 days before the opening of the regular session.
The 1987 Constitution specifically provides that the
President "shall submit to the Congress within thirty days
from the opening of every regular session, as the basis of
the general appropriations bill, budget of expenditures and
sources of financing, including receipts from existing and
proposed revenue measures" ( Sec. 22, Art. VI). Congress
uses the budget submitted by the president as the basis for
the annual appropriation.
According to the 1987 Philippine Constitution, Congress
"may not increase the appropriation recommended by the
President for the operation of the Government as specified
in the budget" (Sec. 25(1), Art. VI).

HOW IS THE GOVERNMENT BUDGET

CRAFTED AND APPROVED?

The Budget
Process

BUDGET CYCLE
There

are four phases in managing the National Budget:

During

Budget Preparation
Budget Legislation
Budget Execution
Budget Accountability

the preparation phase, the Executive prepares the

proposed National Budget. This is followed by the legislation
phase where the Congress authorizes the General
Appropriations Act. In the execution phase, agencies utilize
their approved budgets and during the accountability phase,
the executive monitors and evaluates the use of the budget.

THE NATIONAL BUDGET CYCLE

PREPARATION

ACCOUNTABILIT
Y

LEGISLATI
ON
EXECUTION

1. BUDGET PREPARATION
DBCC sets
parameter
s

Budget
Call

Executiv
e
Review

Technical
Budget
Hearings

Consolidation
,
Validation &
Confirmation

Presentation
To President
& Cabinet

Stakeholde
rs
Consultatio
n

Agency
Budget
Proposals

The
Presidents
Budget

2. BUDGET LEGISLATION
Alternatively called the Budget Authorization phase, this starts upon
the House Speakers receipt of the Presidents Budget and ends with the
Presidents enactment of the General Appropriations Act.

Submission of
Budget
To Congress

HOUSE
DELIBERATION
S

SENATE
DELIBERATION
S

- Appropriations of
Comm. Hearings
- Plenary
Deliberations
- Approval of GAB

- Finance Comm.
Hearing
- Plenary
Deliberations
- Approval of Senate
GAB

Reenactment
(Partial or Full)

Veto and
Enactment
of
GAA

Bicameral
Conference
Committee

Ratification of
Harmonized
Version of
GAB

3. BUDGET EXECUTION
This

is where the peoples money is actually

spent. As soon as the GAA is enacted, the
government can implement its priority
programs and projects.

4. BUDGET ACCOUNTABILITY
This

phase happens alongside the Budget

Execution phase.

Through

Budget Accountability, the DBM

monitors the efficiency of fund utilization,
assesses
agency
performance
and
provides a vital basis for reforms and new
policies.

2014 BUDGET BY DEPARTMENTTOP 10

DedEd = P336.9B
DPWH = P213.5B
DILG = P135.4B
DND=123.1B
DOH =P87.1B
DA = P80.7B
DSWD = 79.0B
DOTC = 48.7B
DENR = 23.9B
DAR = 20.4B