The document discusses budget management and outlines the key concepts, including:
1) The four phases of the budget cycle: preparation, legislation, execution, and accountability.
2) Issues that can arise in each phase, such as lack of resources for preparation or political influences in legislation.
3) How the national budget is allocated across government programs, operations, salaries, and debt payments, aimed at fiscal discipline, efficiency, and strategic priorities.
2. Objectives:
Understanding the budget concept
Understanding the four phases of budget cycle
Understanding the issues or problems in budget
cycle
Understanding the budget allocation
3. The term budget is derived from the French word
“bougette” which means a “leather bag” or a “wallet”.
The Budget Concept
What is a budget?
is an annual financial statement showing item wise
estimates of expected revenue and anticipated
expenditure during a fiscal year.
4. is the critical exercise of allocating revenues and
borrowed funds to attain the economic and social goals
of the country.
The Budget Concept
What is government budgeting?
5. Government budgeting is important because it enables
the government to plan and manage its financial
resources to support the implementation of various
programs and projects that best promote the
development of the country.
The Budget Concept
Why is government budgeting important?
7. The Budget Cycle
There are four phases in managing the National Budget:
Preparation
Legislation
Execution
Accountability
8. This phase involves the formulation of estimates of
revenues and expenditures by the Executive
Departments and Agencies. In preparing the annual
budget proposal, the said department makes an
estimation of government revenues.
The Budget Cycle
1. Budget Preparation
9. The main agency involved is the Development Budget
Coordination Committee (DBCC) composed of the
following agencies:
The Budget Cycle
1. Budget Preparation
10. Alternatively called the “Budget Authorization Phase”
The Budget Cycle
2. Budget Legislation
This pertains to the whole range of legislative action on
the budget, leading to the enactment of a General
Appropriations Law for the year. The Philippine House
of Representatives first conducts hearings/debates on
the budget.
11. Budget execution covers the allotment of
appropriations by the central budget authority to and
the incurrence of obligations by, the spending
departments and agencies of government.
The Budget Cycle
3. Budget Execution/Implementation
12. This involved the reporting of actual performance against
plans or targets
The Budget Cycle
4. Budget Accountability & Review
It involves the
1. Monitoring of agency budgetary performance
2. Comparison and evaluation of actual performance
with the initially-approved work targets
3. A summary list of checks issued is submitted on a
monthly basis
4. Physical & Financial Report of operations is submitted on a
quarterly basis in the form of a trial balance
13. The Budget Cycle Issues/Problems
Have a
Performance-
based framework
allocating
resources to
specific objectives
or activities based
on appropriate
metrics.
Solution
Lack or resources
needed to prepare
and where those
budget will get.
Issue/Problem
1. Budget Preparation
14. The Budget Cycle Issues/Problems
Have large
amount of
supporters in the
Senate, cabinet
members and
house of
representatives.
Solution
The political
budgeting process
is a bit messy.
Issue/Problem
2. Budget Legislation
15. The Budget Cycle Issues/Problems
Adjust the
program/project
implementation to
handle increases in
spending or lower
than expected
revenues. Most of
the time money
comes in and goes
out in accordance
with the budget.
Solution
The timing may
not always be
right.
Issue/Problem
3. Budget Execution
16. The Budget Cycle Issues/Problems
Evaluate the
budget regularly.
Solution
Budget revision
Issue/Problem
4. Budget Accountability
17. The Budget Allocation
On what is the national government budget
spent?
The national budget is allocated for the
implementation of various government programs and
projects, the operation of government offices, payment
of salaries of government employees, and payment of
public debts. These expenditures are classified by
expense class, sector and implementing unit of
government.
18. The Budget Allocation
Three important policy objectives:
Aggregate Fiscal
Discipline
Efficiency and
effectiveness in
implementing
activities
Allocation of
resources
consistent with
strategic policy
priorities