Group 2

THE BUDGET
PROCESS
 G O V E R N ME
NT
A C C O Uthe
- encompasses T Iprocesses
NG
of recordin
analyzing, g,
classifying,
and summarizin al
communicatingg l
transactions
receipt and disposition th
of
involving
government funds and e
poverty, and interpreting
the results thereof.
Arowwai
Industries

N AT I O N A L
BUDGET
- is the government's
estimate of the resources
and uses of government
funds within the fiscal
year.
BUDGET
CYCLE
Preparatio
n

Accountabilit Legislatio
y n
Executio
n
 A bottom-up appraoach is
BUDGET used. In bottom-up
budgeting, parties from
PREPARAT the lowest to the highest

IO N levels of government
participate in the budget
preparation.
IN C R E ME N T ZERO-
AL BASED
B U current
D G E Tyears
I N Gbudget B U D G E T
budget is formulated
I
is based on the Nregard
without G to the
previous years previous year.
budget.
back-to-zero or
roll-over approach clean
slate approach
eff icient and
prone to abuse
eff ective utilization
of funds.
 1. BUDGET
CALL
A budget call contains:
next fiscal year's
targets. agency's
budget ceiling.
other guidelines in the
completion and
submission of agency
budget proposals.
R E L E VA N T
TERMS: Balanced Budget
Annual Budget

Special Budget

Line item Budget

Performance Budget

Obligations Budget
 2. BUDGET HEARING
Each agency defends it budget proposal before the
Department of Budget and Management (DBM). The
Department of Budget and Management then reviews the
each agency's proposal and prepares a recommendation.
3.
PRESENTATIO
N TO THE
OFFICE OF
THE
The proposed budget is presented by
the DBM, together with the
PRESIDENT
Development Budget Coordinating
Committee (DBCC), to the President and
the Cabinet to review the proposed
budget.
PRESIDENT'S
BUD G E T Budget Message
a. President's

b. National Expenditure Program (NEP)

c.Budget of Expenditures and Resources

of Financing (BESF)

d.Other documents aimed to provide

further explaination of selected items in the
NEP.
 BUDGET
L E G I S L AT I O N
4. House Deliberation 5. Senate Deliberations

6. Bicameral
7. Presidents Enactment
Deliberations
THE APPROVED
BUDGET
Appropriation - is the authorization made by
a legislative body to allocate funds for
purposes specified by the legislative or similar
authority
 2022 N AT I O N A L
BUDGET
Today, President Rodrigo Roa Duterte signed into law the
P5.024 trillion Fiscal Year (FY)2022 General Appropriations Act
(GAA). The budget is equivalent to 23.3 percent of the gross
domestic product, and larger by 11.5 percent than the FY
2021 budget.
SOUCE: dbm.gov.ph
 APPROVED
BUDGET
CONSISTS OF
THE
FOLLOWING:
1. New General Appropriations
- are annual
authorizations for
incurring obligations
during a specified budget
year, as listed in the GAA.
2. Continuing 3. Supplemental
Appropriations Appropriations
- are the authorizations to - are
support obligations for a additional appropriations
specific purpose or authorized by law to
project, such as multi- augment the original
year construction appropriations which
projects which require proved to be insufficient
the incurrence of for their intended purpose
obligations even beyond as due to economic,
the budget year. political or social conditions
supported by a
Certification of Availability
of Funds from the BTr.
4. Automatic
Appropriation
s
- are the authorizations
programmed annually or
for some other period
prescribed by law which do
not require periodic action
by Congress.
 State
5. Unprogrammed Funds
Universities
- are standby
appropriations and Colleges
authorized by Congress
in the
annual.
- collections which are
6.authorized
Retained Income/Funds
by law to be used
Department
directly by agencies
of Health
concerned for their
operation or specific
purposes
 8. Trust Receipts
- by any government agency acting as
7. Revolving Funds trustee, agent or administrator for
- receipts derived from
the fulfilment of some obligations or
business-type activities of
conditions
departments/agencies which are
authorized by law to be Examples:
constituted as such and an Inter agency transferred funds
deposited in authorized Receipts deposited with
government depository bank. the National
Treasury other than deposited with
IATF Receipts
Authorized Government
Depository Bank
BUDGET
EXECUTION
8. Release guidelines and
BEDs

- Budget Execution
Documents (BEDs) are annual
documents required at the
onset of the budget
execution phase, which
contain the agencies' target
and plans, physical as well as
financial, for the current
-a BED summarizes an agency's
fiscal year plans and performance
targets. It includes the following:

a. Physical and financial plan,

b.Monthly cash program,
c.Estimate of monthly income,
d.List of obligations that are
not
yet due and demandable.
MAJOR
RECIPIENTS
OF THE
B U D G E T:
1.National
Government
Agencies (NGAs)
2.Local Government
Units (LGUs)
3.Government Owned
and Controlled
Corporations (GOCCs)
The members of the Congress
(Senators and Congressmen) and the
Judiciary Branch are also recipients
of a portion of the budget.
1.The portion received by
members of the Congress is
referred to as the Priority
Development Assistance Fund
(PDAF) a.k.a. “Pork Barrel.”
2.The portion received by
members of the Judiciary is
referred to as theJudiciary
Development Fund (JDF).
In 2014, the Aquino
Administration 9.
introduced the Allotment
- the DBM formulates the
Disbursement
Allotment Release
Acceleration
Program (ARP) to set the
Program (DAP)
limit for allotment
which aims to
releases during the
speed-up public
upcoming year.
spending.
Savings
Unprogramme
d funds
 DOCUMENTS
U S E D IN
R E L E A S IN G
A L L O T ME N T S
TO
1.General Appropriations
G O V E R N M E
Act Release Document (GAARD)N T
A GRelease
2.Special Allotment ENCIES
Order (SARO)
3.General Allotment Release
Order (GARO)
10. Incurrance of
Obligations

- government agencies incur obligations

which will be paid by the government,
e.g.entering into contracts, hiring of
personnel, purchase of supplies, etc.
 11. Disbursement
Authority

-the DBM issues

disbursement authority to the
government agencies.

1. Notice of Cash Allocation (NCA)

2. Notice of Transfer of Allocation
3. Non-Cash Availment Authority
4. Cash Disbursement Ceiling
BUDGET
A C C O U N TA B I L I T Y
12. Budget Accountability Reports

a. Monthly Report Disbursements

b. Quarterly Physical Report of

Operation
c. Statement of Appropriation
Allotments, s,
Obligations, and Disbursement
Balances s
d. Summary of Appropriations,
Allotments, Obligations, Disbursements
and Balances
e. List of Allotments and Sub-Allotments

f. Statement of Approved Budget, Utilizations,

Disbursements and Balances

g.Summary of Approved Budget, Utilizations,

Disbursements and Balances by Object of
Expenditures

h. Quarterly Report of Revenue and Other

Receipts.

i. Aging of Due and Demandable Obligations

13. Performance Reviews

14. Audit
RESPONSIBILI
Identificatio and distinction
TY n between:
- is a system of providing
ACCOUNTING
cost and revenue
Responsibility
information which a
Center Controllable
manager has a direct
Cost Non-
control of.
controllable Cost
THANK
YOU
G R O U P T W O