RA 7160 Section 317-Submission of Budget

Proposals by Heads of Departments or Offices

(a) Each head of department or office shall submit a

budget proposal for his department or office to the
local chief executive on or before the fifteenth (15th)
of July of each year:
 Provided, That the budget proposal of each
department of office shall be categorized under
either economic, social or general services:
 Provided, further, That each service shall be covered

by the budget of at least one (1) department or

office of the local government unit concerned.
RA 7160 Section 317-Submission of Budget
Proposals by Heads of Departments or Offices

 Economic Services - promote growth in the economy,

using all factors in production, like increasing
productivity in agriculture and all other industries,
generate employment and other livelihood projects.
 Social Services - promote the well-being and general
welfare of constituents or people like education,
health, public safety, and protection of the
marginalized and disadvantaged members of the
society.
 General Services - provide planning, financial,
administrative, legal and legislative services to the
front-line services of the LGUs.
RA 7160 Section 317-Submission of Budget
Proposals by Heads of Departments or Offices

The said budget proposal shall be prepared in

accordance with such policy and program
guidelines as the local chief executive concerned
may issue in conformity with
 the local development plan,

 the budgetary ceilings prescribed by the local

finance committee,
 and the general requirements prescribed in this
Title.
RA 7160 Section 317-Submission of Budget
Proposals by Heads of Departments or Offices

(b) Budget proposals of departments or offices shall

be divided into two (2) primary categories, namely:
 the current operating expenditures

 and the capital outlays.

Current Operating Expenditures (COE) - refer to
appropriations for the purchase of goods and
services for the conduct of normal local
government operations within the fiscal year,
including goods and services that will be used or
consumed during the budget year.
 Personal Services (PS)

 Maintenance and Other Operating

Expenses(MOOE)
Financial Expenses - expenses which are not used in
the actual operation of the LGU. These expenses
include bank charges, interest expense, commitment
fees and other financial charges.

Capital Outlay (CO) - refers to appropriations for the

purchase of goods and services, the benefits of which
extend beyond the fiscal year and which add to the
asset of the local government unit concerned,
including investment in public utilities such as public
markets and slaughter houses.