Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
205_MPA.pptx
1. Presentation by:
Emmalyn L. Tulin-Llamasarez
Jerwin C. Abayani
Leomar M. Acal
BUDGET PROCESS
Public Fiscal Management and Accountability
WORLD CITI COLLEGES
2. Presentation by:
Emmalyn L. Tulin-Llamasarez J.D.
Overview of the Budget System
Public Fiscal Management and Accountability
WORLD CITI COLLEGES
3. WORLD CITI COLLEGES Public Fiscal Management and Accountability
DEPARTMENT OF BUDGET AND MANAGEMENT
It is responsible for the sound and efficient use of
government resources for national development and
also as an instrument for the meeting of national socio-
economic and political development goals. Department
of Budget and Management.
4. DEPARTMENT GOALS
Fiscal Strength - Achieve a balanced budget for the national
government by 2008 in order achieve a surplus in the consolidated
public sector financial position by 2009 and bring down public debt to
manageable levels.
Anti-Corruption - Reduce the prevalence of corruption in government
to save funds and channel them to more productive purposes, lower
cost of doing business, and raise credibility.
Bureaucratic Reforms - Strengthen the institutional capacity of
government to improve service delivery and to build a more effective,
ethical and accountable bureaucracy.
DEPARTMENT OF BUDGET AND
MANAGEMENT
5. WORLD CITI COLLEGES Public Fiscal Management and Accountability
The Philippine Budget Cycle/Process
Four phases comprise the Philippine budget process, specifically:
(1) Budget Preparation;
(2) Budget Legislation;
(3) Budget Execution; and
(4) Accountability.
*Each phase is distinctly separate from the others but they overlap in the implementation of the
budget during the budget year.
6. WORLD CITI COLLEGES Public Fiscal Management and Accountability
1. Budget Preparation
A. Issuance of a Budget Call by the DBM.
The Budget Call is of two kinds, namely:
(1) a National Budget Call, which is addressed to all
agencies, including state universities and colleges;
and
(2) a Corporate Budget Call, which is addressed to all
government-owned and -controlled corporations
(GOCCs) and government financial institutions (GFIs).
7. WORLD CITI COLLEGES Public Fiscal Management and Accountability
1 Budget Preparation
B. The various departments and agencies submit their
respective Agency Budget Proposals to the DBM.
SUBMIT
PRESENTED
REVIEW
8. WORLD CITI COLLEGES Public Fiscal Management and Accountability
c.1 Budget Preparation
C. The DBM next consolidates the recommended agency budgets
into the National Expenditure Program (NEP) and a Budget
of Expenditures and Sources of Financing (BESF).
NEP
PROGRAM
PROJECT
ACTIVITY
9. D. The NEP and BESF are thereafter presented by the DBM and
the DBCC to the President and the Cabinet for further
refinements or reprioritization.
The budget documents consist of:
(1) the President’s Budget Message, through which the President explains the policy
framework and budget priorities;
(2) the BESF, mandated by Section 22, Article VII of the Constitution, which contains the
macroeconomic assumptions, public sector context, breakdown of the expenditures and
funding sources for the fiscal year and the two previous years; and
(3) the NEP.
WORLD CITI COLLEGES Public Fiscal Management and Accountability
1 Budget Preparation
10. WORLD CITI COLLEGES Public Fiscal Management and Accountability
1 Budget Preparation
Public or government expenditures are
generally classified into two categories,
specifically:
(1) capital expenditures or outlays; and
(2) current operating expenditures.
11. Public expenditures are also broadly grouped according to their functions into:
(1) economic development expenditures (i.e., expenditures on agriculture and natural resources,
transportation and communications, commerce and industry, and other economic development
efforts); (2) social services or social development expenditures (i.e., government outlay on education,
public health and medicare, labor and welfare and others);
(3) general government or general public services expenditures (i.e., expenditures for the general
government, legislative services, the administration of justice, and for pensions and gratuities);
(4) national defense expenditures (i.e., sub-divided into national security expenditures and
expenditures for the maintenance of peace and order);and
(5) public debt.
WORLD CITI COLLEGES Public Fiscal Management and Accountability
1 Budget Preparation
12. Public expenditures may further be classified
according to the nature of funds, i.e., general fund,
special fund or bond fund.
On the other hand, public revenues complement
public expenditures and cover all income or receipts of
the government treasury used to support government
expenditures.
1 Budget Preparation
13. WORLD CITI COLLEGES Public Fiscal Management and Accountability
2 Budget Legislation
1. The Budget Legislation Phase covers the period
commencing from the time Congress receives
the President’s Budget,
2. the President’s Budget is assigned to the House of
Representatives’ Appropriations Committee on First
Reading.
14. WORLD CITI COLLEGES Public Fiscal Management and Accountability
c.2 Budget Legislation
3. The Senate conducts its own committee hearings on the
GAB.
4. The House of Representatives and the Senate then
constitute a panel each to sit in the Bicameral
Conference Committee for the purpose of discussing
and harmonizing the conflicting provisions of their
versions of the GAB.
16. WORLD CITI COLLEGES Public Fiscal Management and Accountability
3 Budget Execution
With the GAA now in full force and effect, the next step is the
implementation of the budget.
The Budget Execution Phase is primarily the function of the DBM,
which is tasked to perform the following procedures, namely:
(1) to issue the programs and guidelines for the release of funds;
(2) to prepare an Allotment and Cash Release Program;
(3) to release allotments; and
(4) to issue disbursement authorities.
17. WORLD CITI COLLEGES
3 Budget Execution
The implementation of the GAA is directed by the guidelines
issued by the DBM.
Prior to this, the various departments and agencies are
required to submit Budget Execution Documents (BED) to
outline their plans and performance targets by laying down
the physical and financial plan, the monthly cash
program, the estimate of monthly income, and the list of
obligations that are not yet due and demandable.
Public Fiscal Management and Accountability
18. WORLD CITI COLLEGES
3 Budget Execution
Thereafter, the DBM prepares an Allotment
Release Program (ARP) and a Cash Release
Program (CRP). The ARP sets a limit for
allotments issued in general and to a
specific agency. The CRP fixes the monthly,
quarterly and annual disbursement levels.
Public Fiscal Management and Accountability
19. WORLD CITI COLLEGES
3 Budget Execution
Allotments, which authorize an agency to enter into
obligations, are issued by the DBM. Allotments are lesser
in scope than appropriations, in that the latter embrace
the general legislative authority to spend. Allotments
may be released in two forms – through a
comprehensive Agency Budget Matrix (ABM), or,
individually, by SARO.
Public Fiscal Management and Accountability
20. WORLD CITI COLLEGES
3 Budget Execution
Armed with either the ABM or the SARO, agencies become
authorized to incur obligations on behalf of the
Government in order to implement their PAPs. Obligations
may be incurred in various ways, like hiring of personnel,
entering into contracts for the supply of goods and
services, and using utilities.
Public Fiscal Management and Accountability
21. WORLD CITI COLLEGES
3 Budget Execution
In order to settle the obligations incurred by the agencies, the DBM issues
a disbursement authority so that cash may be allocated in payment of the
obligations. A cash or disbursement authority that is periodically issued is referred
to as a Notice of Cash Allocation (NCA), which issuance is based upon an agency’s
submission of its Monthly Cash Program and other required documents.
The NCA specifies the maximum amount of cash that can be withdrawn from a
government servicing bank for the period indicated. Apart from the NCA, the DBM
may issue a Non-Cash Availment Authority (NCAA) to authorize non-cash
disbursements, or a Cash Disbursement Ceiling (CDC) for departments with
overseas operations to allow the use of income collected by their foreign posts for
their operating requirements.
Public Fiscal Management and Accountability
22. Actual disbursement or spending of government
funds terminates the Budget Execution Phase and is
usually accomplished through the Modified
Disbursement Scheme under which disbursements
chargeable against the National Treasury are
coursed through the government servicing banks.
3 Budget Execution
23. WORLD CITI COLLEGES
c.4 Budget Accountability
Accountability is a significant phase of the budget cycle because it ensures that
the government funds have been effectively and efficiently utilized to achieve
the State’s socio-economic goals. It also allows the DBM to assess the
performance of agencies during the fiscal year for the purpose of implementing
reforms and establishing new policies.
An agency’s accountability may be examined and evaluated through (1)
performance targets and outcomes; (2) budget accountability reports; (3)
review of agency performance; and (4) audit conducted by the Commission on
Audit (COA).
Public Fiscal Management and Accountability
24. The Resources In the Budget
Process
WORLD CITI COLLEGES
Jerwin C. Abayani
25. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET
PROCESS
Classical economist Adam Smith categorized public revenues based on two
principal sources, stating: “The revenue which must defray…the necessary
expenses of government may be drawn either,
1. From some fund which peculiarly belongs to the sovereign or
commonwealth, and which is independent of the revenue of the people,
2. From the revenue of the people.”
Public Fiscal Management and Accountability
26. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET
PROCESS
Adam Smith’s classification relied on the two aspects of the
nature of the State:
1. The State as a juristic person with an artificial personality,
2. The State as a sovereign or entity possessing supreme
power.
Public Fiscal Management and Accountability
27. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET PROCESS
In the Philippines, public revenues are generally derived
from the following sources, to wit:
(1) tax revenues
(2) capital revenues
(3) grants
(4) extraordinary income
(5) public borrowings
Public Fiscal Management and Accountability
28. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET PROCESS
Public Fiscal Management and Accountability
General Income Specific Income
1.) Subsidy Income from National Government 1.) Income Taxes
3.) Subsidy from Central Office 2.) Property Taxes
3.) Subsidy from Regional Office/Staff Bureaus 3.) Taxes on Good and Services
4.) Income from Government Services 4.) Taxes on International Trade
and Transactions
5.) Income from Government Business Operations 5.) Other Taxes
More specifically, public revenues are classified as follows
29. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET PROCESS
General Income Specific Income
6.) Sales Revenue 6.) Fines and Penalties-Tax Revenue
7.) Rent Income 7.) Other Specific Income
8.) Insurance Income
9.) Dividend Income
Public Fiscal Management and Accountability
30. WORLD CITI COLLEGES
RESOURCES IN THE BUDGET PROCESS
General Income
10.) Interest Income
11.) Sale of Confiscated Goods and Properties
12.) Foreign Exchange (FOREX) Gains
13.)Miscellaneous Operating and Service Income
14.) Fines and Penalties-Government Services and Business Operations
15.)Income from Grants and Donations
Public Fiscal Management and Accountability