2. 1. RELEASE GUILDELINES AND PROGRAM
THE BUDGET EXECUTION PHASE BEGINS WITH
DBM’S ISSUANCE OF GUIDELINES ON THE RELEASE
AND UTILIZATION OF FUNDS.

3. 2. BUDGET EXECUTION DOCUMENTS (BEDS)
AGENCIES ARE REQUIRED TO SUBMIT THEIR
BEDS AT THE START OF BUDGET EXECUTION.
THESE DOCUMENTS OUTLINE AGENCY PLANS
AND PERFORMANCE TARGETS. THESE BEDS
INCLUDE THE PHYSICAL AND FINANCIAL
PLAN, MONTHLY CASH PROGRAM, ESTIMATE
OF MONTHLY INCOME, AND LIST OF
OBLIGATIONS THAT ARE NOT YET DUE AND
DEMANDABLE.

4. 3. ALLOTMENT AND CASH RELEASE PROGRAMMING
TO ENSURE THAT RELEASES FIT THE APPROVED
FISCAL PROGRAM, THE DBM PREPARES AN
ALLOTMENT RELEASE PROGRAM (ARP) TO SET A
LIMIT FOR ALLOTMENTS ISSUED TO AN AGENCY AND
ON THE AGGREGATE. THE ARP OF EACH AGENCY
CORRESPONDS TO THE TOTAL AMOUNT OF THE
AGENCY-SPECIFIC BUDGET UNDER THE GAA, AS
WELL AS AUTOMATIC APPROPRIATIONS. A CASH
RELEASE PROGRAM (CRP) IS ALSO FORMULATED
ALONGSIDE THAT TO SET A GUIDE
FOR DISBURSEMENT LEVELS FOR THE YEAR AND
FOR EVERY MONTH

5. 4. ALLOTMENT RELEASE
ALLOTMENTS, WHICH AUTHORIZE AN AGENCY TO ENTER INTO AN
OBLIGATION, ARE EITHER RELEASED BY DBM TO ALL AGENCIES
COMPREHENSIVELY THROUGH THE AGENCY BUDGET MATRIX (ABM) AND
INDIVIDUALLY VIA SPECIAL ALLOTMENT RELEASE ORDERS (SAROS).
ABM. THIS DOCUMENT DISAGGREGATES ALL PROGRAMMED
APPROPRIATIONS FOR EACH AGENCY INTO TWO MAIN EXPENDITURE
CATEGORIES: “NOT NEEDING CLEARANCE” AND “NEEDING CLEARANCE.”
THE ABM IS THE COMPREHENSIVE ALLOTMENT RELEASE DOCUMENT FOR
APPROPRIATIONS WHICH DO NOT NEED CLEARANCE, OR THOSE WHICH
HAVE ALREADY BEEN ITEMIZED AND FLESHED OUT IN THE GAA.
SARO. ITEMS IDENTIFIED AS “NEEDING CLEARANCE” ARE THOSE WHICH
REQUIRE THE APPROVAL OF THE DBM OR THE PRESIDENT, AS THE CASE
MAY BE (FOR INSTANCE, LUMP SUM FUNDS AND CONFIDENTIAL AND
INTELLIGENCE FUNDS). FOR SUCH ITEMS, AN AGENCY NEEDS TO SUBMIT
A SPECIAL BUDGET REQUEST TO THE DBM WITH SUPPORTING
DOCUMENTS. ONCE APPROVED, A SARO IS ISSUED.

6. 5. INCURRING OBLIGATIONS
IN IMPLEMENTING PROGRAMS, ACTIVITIES AND PROJECTS,
AGENCIES INCUR LIABILITIES ON BEHALF OF THE
GOVERNMENT. OBLIGATIONS ARE LIABILITIES LEGALLY
INCURRED, WHICH THE GOVERNMENT WILL PAY FOR. THERE
ARE VARIOUS WAYS THAT AN AGENCY “OBLIGATES:” FOR
EXAMPLE, WHEN IT HIRES STAFF (AN OBLIGATION TO PAY
SALARIES), RECEIVES BILLINGS FOR THE USE OF UTILITIES,
OR ENTERS INTO A CONTRACT WITH AN ENTITY FOR THE
SUPPLY OF GOODS OR SERVICES.

7. THE GAA AS ALLOTMENT RELEASE
THE AQUINO ADMINISTRATION PLANS TO DESIGN THE
ANNUAL GENERAL APPROPRIATIONS ACT AS THE
COMPREHENSIVE ALLOTMENT RELEASE DOCUMENT ITSELF.
THIS IS BEING PURSUED IN ORDER TO SIGNIFICANTLY
SPEED-UP THE PROCESS OF RELEASING THE BUDGET AND
IMPLEMENTING THE PROGRAMS AND PROJECTS THAT IT
FUNDS.THE 2013 NATIONAL BUDGET, CURRENTLY BEING
PREPARED, IS BEING DESIGNED IN SUCH WAY. THIS ENTAILS
THE DISAGGREGATION OF ALL BUDGET ITEMS INTO FULL
DETAIL, AS WELL AS THE ELIMINATION OF ALL LUMP-SUM
FUNDS, SAVE FOR A FEW EXCEPTIONS SUCH AS THE
CALAMITY FUND. IN OTHER WORDS, THIS REFORM
SIGNIFICANTLY REDUCES THE NEED FOR SAROS.

8. 6. CASH ALLOCATION
TO AUTHORIZE AN AGENCY TO PAY THE OBLIGATIONS IT INCURS, DBM
ISSUES A DISBURSEMENT AUTHORITY. MOST OF THE TIME, IT TAKES THE
FORM OF A NOTICE OF CASH ALLOCATION (NCA); AND IN SPECIAL CASES,
THE NON-CASH AVAILMENT AUTHORITY (NCAA) AND CASH
DISBURSEMENT CEILING (CDC).
NCA. THIS IS A CASH AUTHORITY ISSUED PERIODICALLY BY THE DBM TO
THE OPERATING UNITS OF AGENCIES TO COVER THEIR CASH
REQUIREMENTS. THE NCA SPECIFIES THE MAXIMUM AMOUNT OF CASH
THAT CAN BE WITHDRAWN FROM A GOVERNMENT SERVICING BANK FOR
THE PERIOD INDICATED. THE RELEASE OF NCAS BY DBM IS BASED ON AN
AGENCY’S SUBMISSION OF ITS MONTHLY CASH PROGRAM AND OTHER
REQUIRED DOCUMENTS.
OTHERS DISBURSEMENT AUTHORITIES. IN CONTRAST TO NCAS, NCAAS
ARE ISSUED TO AUTHORIZE NON-CASH DISBURSEMENTS. CDCS ARE
MEANWHILE ISSUED TO DEPARTMENTS WITH OVERSEAS OPERATIONS,
ALLOWING THEM TO USE INCOME COLLECTED BY THEIR FOREIGN POSTS
FOR THEIR OPERATING REQUIREMENTS.

9. 7. DISBURSEMENT
THIS IS THE FINAL STEP OF THE BUDGET EXECUTION
PHASE, WHERE GOVERNMENT MONIES ARE
ACTUALLY SPENT. THE MODIFIED DISBURSEMENT
SCHEME IS MOSTLY USED, WHERE DISBURSEMENTS
OF NATIONAL GOVERNMENT AGENCIES
CHARGEABLE AGAINST THE TREASURY ARE MADE
THROUGH GOVERNMENT SERVICING BANKS, SUCH
AS THE LAND BANK OF THE PHILIPPINES.
THE BUDGET PROCESS, OF COURSE, DOES NOT END
WHEN GOVERNMENT AGENCIES SPEND PUBLIC
FUNDS: EACH AND EVERY PESO MUST BE
ACCOUNTED FOR TO ENSURE THAT IS USED
PROPERLY, CONTRIBUTING TO THE ACHIEVEMENT
OF SOCIO-ECONOMIC GOALS.