PRINCIPLES PUBLIC BUDGETING

PRINCIPLES OF PUBLIC BUDGETING

What is
Budget
A budget is a financial plan that outlines the expected revenues and
expenses of an individual, organization, or government entity over a
specific period of time, typically a year. It serves as a tool for decision-
making, resource allocation, and accountability for financial resources.

Public budgeting is the process of creating, implementing, and
evaluating a public budget. It involves determining the financial resources
needed to achieve public policy objectives, prioritizing expenditures, and
allocating resources to specific programs and activities.
Public budgeting is a complex process that involves various stakeholders,
including government officials, policymakers, and citizens.
What is
Budget
A budget is a financial plan that outlines the expected revenues and
expenses of an individual, organization, or government entity over a
specific period of time, typically a year. It serves as a tool for decision-
making, resource allocation, and accountability for financial resources.

Basic
Concepts in
Budgeting
What is a
FUND?
What BASIS law
governs the use of
government funds?
"Art. VI, Sec. 29. No money shall be paid by the
Treasury except in pursuance
of an appropriation made by law."
It is sometimes used to refer an appropriation
which is a legislative authorization to spend or an
allotment which is an authorization by the
Department of Budget and Management (DBM) to
obligate, or as actual cash available.
How are
government funds
appropriated?
“The Budget Process."

Basic
Concepts in
Budgeting
appropriated?
In general, a government budget is the financial plan
of a government for a given period, usually for a fiscal
year, which shows what its resources are, and how
they will be generated and used over the fiscal period.
What is a government
budget?
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.
On what is the
national government
budget spent?
The preparation of the government's budget every
year is in accordance with the provision of the
Constitution.
Why does the
government prepare a
new budget every
year?

Basic
Concepts in
Budgeting
1) New general appropriations legislated by Congress
for every budget year under the General
Appropriations Act (GAA)
2) Existing appropriations previously authorized
by Congress
What are the sources
of appropriations that
make up the annual
budget?
The "one-fund" concept is the policy enunciated
through PD 1177 which requires that all income and
revenues of the government must accrue to the
General Fund and thus can be freely allocated to fund
programs and projects of government as prioritized.
What is the "one-fund"
concept?
In the context of government budgeting, a budget is
said to be balanced when revenues match
expenditures or disbursements.
When expenditures exceed revenues, the government incurs a deficit
which may result in the following situations:
-The government borrows money either from foreign sources or from
the domestic capital market; and Bangko Sentral
What is a balanced
budget? What
happens when the
budget is not
balanced?

TYPES OF BUDGET
A small business creates an operating budget for the
upcoming year that includes estimated revenues from
sales, as well as expenses such as rent, utilities,
salaries, and supplies.

TYPES OF BUDGET
A city government creates a capital
budget for the next five years that
includes expenditures for new
infrastructure projects such as roads,
bridges, and buildings.

TYPES OF BUDGET
An individual creates a
cash budget for the
month of April that
includes expected
income from their job,
as well as expenses such
as rent, groceries, and
utilities.

TYPES OF BUDGET
A non-profit organization creates a zero-
based budget for the upcoming fiscal year, in
which they justify every expense from scratch
based on the expected outcomes and impact
of each program.

TYPES OF BUDGET
A manufacturing company creates a flexible
budget that adjusts production costs based on
changes in the price of raw materials or
changes in demand for their products.

Citizens should have a voice in the
budget process, including
opportunities to provide feedback
and input.
This can be achieved through public
hearings, town hall meetings, and
other forms of engagement.

The budget should be
designed to address the needs
of all citizens, regardless of
their socio-economic status or
location.
This principle requires that
resources be allocated in a
way that ensures that all
citizens have access to basic
services and opportunities.

Resources should be allocated in a way
that maximizes their impact and
minimizes waste.
This requires careful planning and
evaluation to ensure that programs are
achieving their goals in the most cost-
effective manner possible.

Public officials must be accountable for
their actions and decisions related to the
budget.
This includes ensuring that funds are used
for their intended purposes and that
performance measures are in place to
evaluate the effectiveness of programs.

This principle requires that the budget
process be open and accessible to the
public.
It ensures that citizens have access to
information about how their tax dollars are
being spent and can hold government
officials accountable for their decisions.

BUDGETING IN THE
PHILIPPINES
WHAT WERE PRACTICED?

BUDGETING IN THE
PHILIPPINES
DECLARATION The country was on the verge of
financial crisis and budget deficit is
the most urgent problem
KEY PRINCIPLE Fiscal Strength should be restored
PUBLIC EXPENDITURE MANAGEMENT
(PEM)
Governments must plan how much money they will
spend on different programs and services, and then
allocate those funds to specific departments or agencies.
The budgeting process involves balancing competing
priorities and making tough decisions about where to
allocate resources.

BUDGETING IN THE
PHILIPPINES
DECLARATION “DAANG MATUWID”
Budget for Inclusive
Development
KEY PRINCIPLE
• Link budgets to agency performance
• Hold agencies accountable for delivering
their targets using their budgets
• Agencies are required to publish key
budget information and reports through
their respective websites (BT-Budget
Transparency; Transparency Seals)
PERFORMANCE-INFORMED
BUDGETING (PIB)
• strengthens the direct relationship between
planning, budgeting and outcomes and
enhances transparency and accountability
in the allocation of limited resources
BUTTOM-UM BUDGETING (BUB)
• a demand-driven budget planning process
• institutionalizes people's participation in the
budget process to gain a better
understanding of their needs and
requirements and ensure that these are
met.

BUDGETING IN THE
PHILIPPINES
DECLARATION
“Budget for real change”
• Credible and disciplined fiscal
policy
• Fiscal space focused on
equitable and social order
• Strengthening transparency,
participation and accountability
• Enhancing partnership with local
governments to ensure
sustainable development
KEY PRINCIPLE
PROGRAM
CONVERGENCE
BUDGETING
ENHANCED PERFORMANCE-INFORMED BUDGETING
(PIB)
• sustaining cooperation in the
development and implementation of
priority programs ensuring collaboration
and coordination among all the
participating agencies
• It reflects in the budget the link between
strategies, budgets and results and
facilitates the monitoring and evaluation
of programs with the performance
indicators attached to each program.
PROGRAM EXPENDITURE
CLASSIFICATION (PREX)

BUDGET PROCESS IN THE
Programs and Services

Budget
Preparation
Budget Call Citizen
Engagement
Program Budgeting Agency
Hearings and
Review
Presentation
Review
Presidents
Budget

Budget
Legislation
House
Deliberation
Senate
Deliberation
Bicameral
Deliberation
Ratification and
Enrollment
Enactment

House of
Representatives
Senate of the
Philippines
House
Deliberation
Senate
Deliberation
Bicameral
Deliberation
Ratification and
Enrollment
Enactment

House of
Representatives
Senate of the
Philippines

Budget
Execution
Disbursement
and Cash
Allocation
Obligation
(Bidding and
Award)
Allotment
Release
Budget Program Early Bidding
for
Infrastructure
Offices Contracts
GUIDELINES

Budget
Accountability
Accountability
Reports
Public
Disclosure
Performance
Review
Mid-Year and
Year-End
Reports
Audit
ANNUAL BUDGET
PERFORMANCE TARGET
PROGRAMS AND PROJECTS IMPLEMENTED
CONTRACTS ENTERED INTO
Website
BUDGET AND PERFORMANCE TARGET

HOW CAN YOU
PARTICIPATE IN THE
BUDGET PROCESS?

READ BUDGET AND PERFORMANCE TARGET VISIT THEIR WEBSITE AND SOCMEDs

ACTIVE CIVIL SOCIETY ORGANIZATION

BANGSAMORO
GOVERNMENT
Budget Process

PRINCIPLES PUBLIC BUDGETING

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