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THE ESSENTIALS OF   <ul><li>PLANNING </li></ul><ul><li>PROGRAMMING </li></ul><ul><li>BUDGETING </li></ul><ul><li>SYSTEMS <...
PPBS <ul><li>INTEGRATED MANAGEMENT SYSTEM </li></ul><ul><li>ANALYSIS FOR PROGRAM DECISION MAKING </li></ul><ul><li>PROVIDE...
MANAGEMENT <ul><li>THE TERM USED IN CONTEXT OF AN ORGANIZATION’S OVERALL MANAGEMENT AND ADMINISTRATION </li></ul><ul><li>P...
PROGRAM DECISION MAKING <ul><li>AS A FUNCTION OF MANAGEMENT : </li></ul><ul><li>DEFINING OBJECTIVES OF THE ORGANIZATION  <...
PPBS <ul><li>PRIMARILY IS CONCERNED WITH MAJOR DECISION-MAKING PROCESSES </li></ul><ul><li>CONCENTRATED ON THE MANAGEMENT ...
ORGANIZATIONAL FUNCTIONS <ul><li>PLANNING </li></ul><ul><li>PROGRAMMING </li></ul><ul><li>BUDGETING </li></ul><ul><li>OPER...
PPBS <ul><li>PLANNING :  </li></ul><ul><li>AIDS IN SELECTION OF ORGANIZATION’S OBJECTIVES </li></ul><ul><li>EXAMINES COURS...
PPBS <ul><li>PROGRAMMING:  </li></ul><ul><li>CONVERTS PLANS TO SPECIFIC ACTION SCHEDULE FOR THE ORGANIZATION </li></ul><ul...
PPBS <ul><li>BUDGETING : </li></ul><ul><li>CONCERNED IN PREPARATION AND JUSTIFICATION OF ORGANIZATION’S ANNUAL BUDGET </li...
PPBS <ul><li>OPERATIONS : </li></ul><ul><li>ACTUAL CARRYING OUT OF ORGANIZATION’S PROGRAM </li></ul><ul><li>PREPARING FOR ...
PPBS <ul><li>EVALUATION : </li></ul><ul><li>EVALUATES WORTH OF OPERATING PROGRAMS </li></ul><ul><li>WORTH OF ATTAINING GOA...
MAJOR OBJECTIVE OF PPBS <ul><li>UNIFY THE PLANNING, PROGRAMMING AND BUDGETING FUNCTIONS </li></ul><ul><li>PLANNING - ANALY...
PPBS <ul><li>RESULTS OF PLANNING : SERVE AS BASIS TO PREPARE ORGANIZATION’S OVERALL PROGRAM </li></ul><ul><li>PROGRAM : DE...
PPBS <ul><li>FIVE (5) ELEMENTS CONSTITUTE PPBS: </li></ul><ul><li>A PROGRAM STRUCTURE </li></ul><ul><li>APPROVED PROGRAM D...
PPBS <ul><li>ALTHOUGH ELEMENTS ARE INTERRELATED, IT IS STILL POSSIBLE TO ADOPT INDIVIDUAL ELEMENTS OF PPBS IN AN ORGANIZAT...
PROGRAM STRUCTURE <ul><li>DESIGNED TO SERVE THE NEEDS OF DECISION-MAKING AND FOR ALLOCATING THE RESOURCES AVAILABLE TO THE...
PROGRAM STRUCTURE <ul><li>REPRESENTS A WAY OF LOOKING AT AN ORGANIZATION’S EFFORTS THAT IS SUITED TO THE NEEDS OF PROGRAM ...
ORGANIZATIONAL OBJECTIVES <ul><li>ORGANIZATIONAL OBJECTIVES OR GOALS ARE DEFINED WITH SUFFICIENT PRECISION </li></ul><ul><...
PPBS – GOVERNMENT SETTING <ul><li>WHAT IS A “FUND”? </li></ul><ul><li>AN APPROPRIATION WHICH IS A LEGISLATIVE AUTHORIZATIO...
WHAT LAW GOVERNS THE USE OF GOVERNMENT FUNDS? <ul><li>ARTICLE VI, SEC. 29 PHIL. CONST. </li></ul><ul><li>“ NO MONEY SHALL ...
HOW ARE GOVERNMENT FUNDS APPROPRIATED? <ul><li>INDIVIDUAL AGENCIES PREPARE THEIR ESTIMATES OF EXPENDITURES  </li></ul><ul>...
WHAT IS A GOVERNMENT BUDGET? <ul><li>FINANCIAL PLAN OF A GOVERNMENT FOR A GIVEN PERIOD FOR A FISCAL YEAR </li></ul><ul><li...
GOVERNMENT BUDGET <ul><li>ALSO REFERS TO THE INCOME, EXPENDITURES AND SOURCES OF BORROWINGS OF THE NATIONAL GOVERNMENT </l...
EXPENDITURE PROGRAM <ul><li>PORTION OF THE NATIONAL BUDGET REFERRING TO THE CURRENT OPERATING EXPENDITURES AND CAPITAL OUT...
FINANCING PROGRAM <ul><li>THE FINANCING PROGRAM INCLUDES THE PROJECTED REVENUES FROM BOTH EXISTING AND NEW MEASURES, THE P...
THE NATIONAL GOVERNMENT BUDGET <ul><li>TOTALITY OF THE BUDGETS OF VARIOUS DEPARTMENTS OF THE NATIONAL GOVERNMENT </li></ul...
NATIONAL GOVERNMENT BUDGET <ul><li>ALLOCATED FOR THE IMPLEMENTATION OF VARIOUS GOVERNMENT PROGRAMS AND PROJECTS </li></ul>...
WHY DOES THE GOVERNMENT PREPARE A NEW BUDGET EVERY YEAR? <ul><li>IN ACCORDANCE WITH THE CONSTITUTION </li></ul><ul><li>IN ...
SOURCES OF APPROPRIATION <ul><li>NEW GENERAL APPROPRIATIONS UNDER THE GENERAL APPROPRIATIONS ACT (GAA) </li></ul><ul><li>E...
EXISTING OR CONTINUING APPROPRIATIONS <ul><li>PREVIOUSLY ENACTED BY CONGRESS AND WHICH CONTINUE TO REMAIN VALID AS AN APPR...
TWO TYPES OF EXISTING APPROPRIATIONS <ul><li>CONTINUING :  </li></ul><ul><li>* APPROPRIATIONS AVAILABLE TO SUPPORT OBLIGAT...
AUTOMATIC APPROPRIATION <ul><li>APPROPRIATION PROGRAMMED ANNUALLY OR FOR SOME OTHER PERIOD PRESCRIBED BY LAW BY VIRTUE OF ...
ARE ALL APPROPRIATIONS SUPPORTED BY RESOURCES? <ul><li>ONLY PROGRAMMED APPROPRIATIONS ARE SUPPORTED BY CORRESPONDING RESOU...
“ONE FUND” CONCEPT <ul><li>POLICY ENUNCIATED THROUGH PD 1177 </li></ul><ul><li>ALL INCOME AND REVENUES OF GOVERNMENT MUST ...
“ ONE-FUND” CONCEPT –ITS IMPORTANCE  <ul><li>*  FISCAL MANAGEMENT POLICY  </li></ul><ul><li>: All revenues and other recei...
BALANCED BUDGET <ul><li>BALANCED BUDGET : REVENUES MATCH EXPENDITURES OR DISBURSEMENTS </li></ul><ul><li>UNBALANCED BUDGET...
FISCAL POLICY <ul><li>HISTORICALLY, NATIONAL GOVERNMENT EXPENDITURES HAVE ALWAYS EXCEEDED TOTAL REVENUES </li></ul><ul><li...
SURPLUS BUDGETING – A NECESSITY <ul><li>TO ENCOURAGE ECONOMIC GROWTH </li></ul><ul><li>LESS BORROWINGS, MORE FUNDS AVAILAB...
SURPLUS BUDGET – A NECESSITY <ul><li>TO REPAY HUGE DEBT IT ACCUMULATED OVER THE YEARS </li></ul><ul><li>REDUCTION OF NATIO...
TOTAL RESOURCE BUDGET CONCEPT <ul><li>NATIONAL GOVERNMENT BUDGET CONSIDERED AS ONLY ONE COMPONENT OF THE ENTIRE PUBLIC SEC...
CONSOLIDATED PUBLIC SECTOR FISCAL POSITION <ul><li>CPSFP : NET DEFICIT OR SURPLUS CALCULATED AFTER SUMMING-UP THE BUDGET B...
PPBS – GOVERNMENT SETTING <ul><li>PPBS IS A CONCEPT THAT STRESSES THE IMPORTANCE OF ESTABLISHING A STRONG LINKAGE BETWEEN ...
PPBS – GOVERNMENT SETTING <ul><li>UNDER THE PPBS CONCEPT, THE BUDGET IS ANCHORED ON THE DEGREE BY WHICH THE ACCOMPLISHMENT...
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Ppbs 2011

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Ppbs 2011

  1. 1. THE ESSENTIALS OF <ul><li>PLANNING </li></ul><ul><li>PROGRAMMING </li></ul><ul><li>BUDGETING </li></ul><ul><li>SYSTEMS </li></ul>
  2. 2. PPBS <ul><li>INTEGRATED MANAGEMENT SYSTEM </li></ul><ul><li>ANALYSIS FOR PROGRAM DECISION MAKING </li></ul><ul><li>PROVIDES MANAGEMENT BETTER ANALYTICAL BASIS FOR MAKING PROGRAM DECISIONS </li></ul><ul><li>DECISIONS : INTEGRATED THROUGH PLANNING,PROGRAMMING, & BUDGETING FUNCTIONS </li></ul>
  3. 3. MANAGEMENT <ul><li>THE TERM USED IN CONTEXT OF AN ORGANIZATION’S OVERALL MANAGEMENT AND ADMINISTRATION </li></ul><ul><li>PROGRAM DECISION MAKING IS A FUNDAMENTAL FUNCTION OF MANAGEMENT </li></ul><ul><li>PD INVOLVES BASIC CHOICES AS TO THE DIRECTION OF AN ORGANIZATION’S EFFORT IN ALLOCATING RESOURCES ACCORDINGLY </li></ul>
  4. 4. PROGRAM DECISION MAKING <ul><li>AS A FUNCTION OF MANAGEMENT : </li></ul><ul><li>DEFINING OBJECTIVES OF THE ORGANIZATION </li></ul><ul><li>DECIDING ON THE MEASURES TAKEN IN PURSUIT OF THE GOALS </li></ul><ul><li>PUTTING THE SELECTED COURSES OF ACTION INTO EFFECT </li></ul>
  5. 5. PPBS <ul><li>PRIMARILY IS CONCERNED WITH MAJOR DECISION-MAKING PROCESSES </li></ul><ul><li>CONCENTRATED ON THE MANAGEMENT FUNCTIONS THAT PRECEDE ACTUAL OPERATIONS </li></ul>
  6. 6. ORGANIZATIONAL FUNCTIONS <ul><li>PLANNING </li></ul><ul><li>PROGRAMMING </li></ul><ul><li>BUDGETING </li></ul><ul><li>OPERATIONS </li></ul><ul><li>EVALUATION </li></ul><ul><li>> PPBS IS CONCERNED WITH THE FIRST THREE PHASES </li></ul>
  7. 7. PPBS <ul><li>PLANNING : </li></ul><ul><li>AIDS IN SELECTION OF ORGANIZATION’S OBJECTIVES </li></ul><ul><li>EXAMINES COURSES OF ACTION IN PURSUIT OF OBJECTIVES </li></ul><ul><li>POSES QUESTION IF COURSE OF ACTION CONTRIBUTES TO ATTAINMENT OF ORGANIZATION’S GOAL THAN ITS VARIOUS ALTERNATIVES </li></ul>
  8. 8. PPBS <ul><li>PROGRAMMING: </li></ul><ul><li>CONVERTS PLANS TO SPECIFIC ACTION SCHEDULE FOR THE ORGANIZATION </li></ul><ul><li>DEVELOPS DETAILED RESOURCE REQUIREMENTS </li></ul><ul><li>DEVELOPS ACTIONS NEEDED TO IMPLEMENT PLANS </li></ul>
  9. 9. PPBS <ul><li>BUDGETING : </li></ul><ul><li>CONCERNED IN PREPARATION AND JUSTIFICATION OF ORGANIZATION’S ANNUAL BUDGET </li></ul><ul><li>FUNCTION - SECURE SUFFICIENT FUNDS TO PUT THE PROGRAM INTO OPERATION </li></ul>
  10. 10. PPBS <ul><li>OPERATIONS : </li></ul><ul><li>ACTUAL CARRYING OUT OF ORGANIZATION’S PROGRAM </li></ul><ul><li>PREPARING FOR OPERATIONS IS THE OBJECT OF ALL OF THE OTHER PHASES </li></ul>
  11. 11. PPBS <ul><li>EVALUATION : </li></ul><ul><li>EVALUATES WORTH OF OPERATING PROGRAMS </li></ul><ul><li>WORTH OF ATTAINING GOALS IS MEASURED AND APPRAISED </li></ul><ul><li>RESULTS USED TO MODIFY CURRENT OPERATIONS OR IN PLANNING FUTURE PROGRAMS </li></ul>
  12. 12. MAJOR OBJECTIVE OF PPBS <ul><li>UNIFY THE PLANNING, PROGRAMMING AND BUDGETING FUNCTIONS </li></ul><ul><li>PLANNING - ANALYSIS & RESEARCH, LEADS TO PROGRAM FORMULATION PROCESS IN PPBS </li></ul><ul><li>ANNUAL BUDGET - DERIVED DIRECTLY FROM ORGANIZATION’S APPROVED PROGRAM & FINANCIAL PLAN </li></ul>
  13. 13. PPBS <ul><li>RESULTS OF PLANNING : SERVE AS BASIS TO PREPARE ORGANIZATION’S OVERALL PROGRAM </li></ul><ul><li>PROGRAM : DERIVED DIRECTLY FROM THE RESULTS OF THE PLANNING ACTIVITY </li></ul><ul><li>BUDGET PREPARATION : DERIVED FROM THE PROGRAM </li></ul>
  14. 14. PPBS <ul><li>FIVE (5) ELEMENTS CONSTITUTE PPBS: </li></ul><ul><li>A PROGRAM STRUCTURE </li></ul><ul><li>APPROVED PROGRAM DOCUMENT WITH PROJECTIONS FOR THE FUTURE </li></ul><ul><li>DECISION-MAKING PROCESS </li></ul><ul><li>USE OF ANALYSIS FOR DECISION-MAKING PURPOSES </li></ul><ul><li>INFORMATION SYSTEM ADAPTED TO THE NEEDS OF PPBS </li></ul>
  15. 15. PPBS <ul><li>ALTHOUGH ELEMENTS ARE INTERRELATED, IT IS STILL POSSIBLE TO ADOPT INDIVIDUAL ELEMENTS OF PPBS IN AN ORGANIZATION </li></ul><ul><li>e.g. ANALYSIS IN DECISION-MAKING COULD BE ADOPTED WITH GOOD EFFECT WITHOUT THE OTHER ELEMENTS </li></ul>
  16. 16. PROGRAM STRUCTURE <ul><li>DESIGNED TO SERVE THE NEEDS OF DECISION-MAKING AND FOR ALLOCATING THE RESOURCES AVAILABLE TO THE ORGANIZATION </li></ul><ul><li>ALSO SERVES AS A FRAMEWORK FOR PREPARING PROGRAM MEMORANDA WHICH JUSTIFY PROPOSED PROGRAMS </li></ul>
  17. 17. PROGRAM STRUCTURE <ul><li>REPRESENTS A WAY OF LOOKING AT AN ORGANIZATION’S EFFORTS THAT IS SUITED TO THE NEEDS OF PROGRAM ANALYSIS AND PROGRAM DECISION-MAKING </li></ul><ul><li>IDENTIFIES MAJOR AGENCY OBJECTIVES WITH THE COURSES OF ACTION SELECTED TO ACHIEVE THOSE OBJECTIVES – WHAT THE AGENCY IS TRYING TO ACHIEVE, WHAT MEASURES ARE TAKEN TO ATTAIN SUCH OBJECTIVES </li></ul>
  18. 18. ORGANIZATIONAL OBJECTIVES <ul><li>ORGANIZATIONAL OBJECTIVES OR GOALS ARE DEFINED WITH SUFFICIENT PRECISION </li></ul><ul><li>TO PERMIT THEIR ALIGNMENT WITH THE COURSES OF ACTION THAT DIRECTLY CONTRIBUTE TO THEIR ACHIEVEMENT </li></ul><ul><li>GOALS THEREFORE MUST BE USEFUL IN AN OPERATIONAL SENSE, PROVIDING GUIDANCE TO CONSIDER ALTERNATIVE COURSES OF ACTION </li></ul>
  19. 19. PPBS – GOVERNMENT SETTING <ul><li>WHAT IS A “FUND”? </li></ul><ul><li>AN APPROPRIATION WHICH IS A LEGISLATIVE AUTHORIZATION TO SPEND </li></ul><ul><li>AN AUTHORIZATION BY THE DBM TO OBLIGATE, OR AS ACTUAL CASH AVAILABLE </li></ul>
  20. 20. WHAT LAW GOVERNS THE USE OF GOVERNMENT FUNDS? <ul><li>ARTICLE VI, SEC. 29 PHIL. CONST. </li></ul><ul><li>“ NO MONEY SHALL BE PAID BY THE TREASURY EXCEPT IN PURSUANCE OF AN APPROPRIATION MADE BY LAW.” </li></ul><ul><li>ALL GOVERNMENT ENTITIES TO UNDERGO THE BUDGETING PROCESS </li></ul><ul><li>AND SECURE FUNDS FOR USE IN CARRYING OUT THEIR MANDATED FUNCTIONS, PROGRAMS AND ACTIVITIES </li></ul>
  21. 21. HOW ARE GOVERNMENT FUNDS APPROPRIATED? <ul><li>INDIVIDUAL AGENCIES PREPARE THEIR ESTIMATES OF EXPENDITURES </li></ul><ul><li>AGENCIES JUSTIFY DETAILS OF THEIR PROPOSED BUDGETS BEFORE DBM </li></ul><ul><li>DBM REVIEWS AND CONSOLIDATES PROPOSED BUDGETS </li></ul><ul><li>AGENCIES EXPLAIN THE DETAILS OF THEIR PROPOSED BUDGETS IN SENATE HEARINGS </li></ul><ul><li>PRESIDENT SIGNS THE GENERAL APPROPRIATIONS BILL INTO LAW – THE GENERAL APPROPRIATIONS ACT (GAA) </li></ul>
  22. 22. WHAT IS A GOVERNMENT BUDGET? <ul><li>FINANCIAL PLAN OF A GOVERNMENT FOR A GIVEN PERIOD FOR A FISCAL YEAR </li></ul><ul><li>SHOWS : RESOURCES & HOW THEY WILL BE GENERATED AND USED </li></ul><ul><li>KEY INSTRUMENT IN PROMOTING THE GOVERNMENT’S SOCIO-ECONOMIC OBJECTIVES </li></ul>
  23. 23. GOVERNMENT BUDGET <ul><li>ALSO REFERS TO THE INCOME, EXPENDITURES AND SOURCES OF BORROWINGS OF THE NATIONAL GOVERNMENT </li></ul><ul><li>SEC 22 ART. VII STATES “ THE PRESIDENT SHALL SUBMIT TO THE CONGRESS WITHIN 30 DAYS FROM THE OPENING OF EVERY REGULAR SESSION, AS THE BASIS OF THE GENERAL APPROPRIATION BILL (GAB), A BUDGET OF EXPENDITURES AND SOURCES OF FINANCING INCLUDING RECEIPTS FROM EXISTING AND PROPOSED REVENUE MEASURES” </li></ul>
  24. 24. EXPENDITURE PROGRAM <ul><li>PORTION OF THE NATIONAL BUDGET REFERRING TO THE CURRENT OPERATING EXPENDITURES AND CAPITAL OUTLAYS </li></ul><ul><li>NECESSARY FOR THE OPERATION OF THE PROGRAMS, PROJECTS AND ACTIVITES OF THE VARIOUS GOVERNMENT DEPARTMENTS AND AGENCIES </li></ul>
  25. 25. FINANCING PROGRAM <ul><li>THE FINANCING PROGRAM INCLUDES THE PROJECTED REVENUES FROM BOTH EXISTING AND NEW MEASURES, THE PLANNED BORROWINGS TO FINANCE BUDGETARY TRANSACTIONS AND THE PAYMENT OF DEBT PRINCIPAL FALLING DUE </li></ul>
  26. 26. THE NATIONAL GOVERNMENT BUDGET <ul><li>TOTALITY OF THE BUDGETS OF VARIOUS DEPARTMENTS OF THE NATIONAL GOVERNMENT </li></ul><ul><li>INCLUDES THE NATIONAL GOVERNMENT SUPPORT TO LOCAL GOVERNMENT UNITS (LGUs) AND GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS (GOCCs) </li></ul>
  27. 27. NATIONAL GOVERNMENT BUDGET <ul><li>ALLOCATED FOR THE IMPLEMENTATION OF VARIOUS GOVERNMENT PROGRAMS AND PROJECTS </li></ul><ul><li>OPERATION OF GOVERNMENT OFFICES, PAYMENT OF SALARIES OF GOVERNMENT EMPLOYEES & PAYMENT OF PUBLIC DEBTS </li></ul><ul><li>CLASSIFIED BY EXPENSE CLASS, SECTOR AND IMPLEMENTING UNIT OF GOVERNMENT </li></ul>
  28. 28. WHY DOES THE GOVERNMENT PREPARE A NEW BUDGET EVERY YEAR? <ul><li>IN ACCORDANCE WITH THE CONSTITUTION </li></ul><ul><li>IN CONSONANCE WITH THE PRINCIPLE REQUIRING ALL GOVERNMENT SPENDINGS TO BE JUSTIFIED ANEW EACH YEAR. </li></ul><ul><li>ENSURES THAT GOVERNMENT ENTITIES CONTINUOUSLY EVALUATE AND REVIEW THE ALLOCATION OF RESOURCES </li></ul>
  29. 29. SOURCES OF APPROPRIATION <ul><li>NEW GENERAL APPROPRIATIONS UNDER THE GENERAL APPROPRIATIONS ACT (GAA) </li></ul><ul><li>EXISTING APPROPRIATIONS PREVIOUSLY AUTHORIZED BY CONGRESS. </li></ul><ul><li>GOVERNED BY ARTICLE VI SECTION 29 OF THE CONSTITUTION </li></ul>
  30. 30. EXISTING OR CONTINUING APPROPRIATIONS <ul><li>PREVIOUSLY ENACTED BY CONGRESS AND WHICH CONTINUE TO REMAIN VALID AS AN APPROPRIATION AUTHORITY FOR THE EXPENDITURE OF PUBLIC FUNDS </li></ul>
  31. 31. TWO TYPES OF EXISTING APPROPRIATIONS <ul><li>CONTINUING : </li></ul><ul><li>* APPROPRIATIONS AVAILABLE TO SUPPORT OBLIGATIONS FOR A SPECIFIED PURPOSE OR PROJECT </li></ul><ul><li>* MULTI-YEAR CONSTRUCTION PROJECTS REQUIRING INCURRENCE OF OBLIGATIONS BEYOND THE BUDGET YEAR </li></ul><ul><li>* RA 8150 (PUBLIC WORKS ACT OF 1995 AND RA 6657, RA 8532 </li></ul>
  32. 32. AUTOMATIC APPROPRIATION <ul><li>APPROPRIATION PROGRAMMED ANNUALLY OR FOR SOME OTHER PERIOD PRESCRIBED BY LAW BY VIRTUE OF OUTSTANDING LEGISLATION REQUIRING PERIODIC ACTION BY CONGRESS </li></ul><ul><li>EXAMPLES: PD 1967; RA 4860; RA 245; COMMONWEALTH ACT 186; RA 660; PD 1177; EXECUTIVE ORDER 292 & PD 1234 </li></ul>
  33. 33. ARE ALL APPROPRIATIONS SUPPORTED BY RESOURCES? <ul><li>ONLY PROGRAMMED APPROPRIATIONS ARE SUPPORTED BY CORRESPONDING RESOURCES </li></ul><ul><li>UNPROGRAMMED APPROPRIATIONS ARE NOT YET SUPPORTED BY CORRESPONDING RESOURCES </li></ul><ul><li>INCLUDED IN CONGRESS IN THE G.A.A. </li></ul><ul><li>CALLED STANDBY APPROPRIATIONS </li></ul>
  34. 34. “ONE FUND” CONCEPT <ul><li>POLICY ENUNCIATED THROUGH PD 1177 </li></ul><ul><li>ALL INCOME AND REVENUES OF GOVERNMENT MUST ACCRUE TO THE GENERAL FUND </li></ul><ul><li>FREELY ALLOCATED TO FUND PROGRAMS AND PROJECTS OF GOVERNMENT AS PRIORITIZED </li></ul>
  35. 35. “ ONE-FUND” CONCEPT –ITS IMPORTANCE <ul><li>* FISCAL MANAGEMENT POLICY </li></ul><ul><li>: All revenues and other receipts of government must enter the General Fund </li></ul><ul><li>: Utilization and disbursement subject to the budgeting process </li></ul><ul><li>AVENUE for Fiscal authorities to properly allocate scarce government resources </li></ul><ul><li>MECHANISM to control drawdowns on pooled resources </li></ul>
  36. 36. BALANCED BUDGET <ul><li>BALANCED BUDGET : REVENUES MATCH EXPENDITURES OR DISBURSEMENTS </li></ul><ul><li>UNBALANCED BUDGET : EXPENDITURES EXCEED REVENUES </li></ul><ul><li>GOVERNMENT INCURS DEFICIT LEADING TO BORROWINGS – FOREIGN OR DOMESTIC </li></ul>
  37. 37. FISCAL POLICY <ul><li>HISTORICALLY, NATIONAL GOVERNMENT EXPENDITURES HAVE ALWAYS EXCEEDED TOTAL REVENUES </li></ul><ul><li>RESULTED TO ANNUAL BUDGET DEFICITS </li></ul><ul><li>N.G. RESORTS TO BORROWINGS TO COVER DEFICITS </li></ul><ul><li>RESULTED TO BALLOONING FOREIGN AND DOMESTIC DEBTS </li></ul>
  38. 38. SURPLUS BUDGETING – A NECESSITY <ul><li>TO ENCOURAGE ECONOMIC GROWTH </li></ul><ul><li>LESS BORROWINGS, MORE FUNDS AVAILABLE IN FINANCIAL MARKETS </li></ul><ul><li>FUNDS AVAILABLE CAN BE USED BY BUSINESSES TO BUILD FACTORIES, HIRE WORKERS, BUY EQUIPMENT, OPEN MORE EMPLOYMENT OPPORTUNITIES </li></ul>
  39. 39. SURPLUS BUDGET – A NECESSITY <ul><li>TO REPAY HUGE DEBT IT ACCUMULATED OVER THE YEARS </li></ul><ul><li>REDUCTION OF NATIONAL BUDGET DEBT, LESSENS GOVERNMENT’S REQUIREMENTS FOR INTEREST AND PRINCIPAL PAYMENTS </li></ul><ul><li>IMPORTANT DURING PERIODS OF RISING INTEREST RATES AND UNSTABLE EXCHANGE RATES </li></ul>
  40. 40. TOTAL RESOURCE BUDGET CONCEPT <ul><li>NATIONAL GOVERNMENT BUDGET CONSIDERED AS ONLY ONE COMPONENT OF THE ENTIRE PUBLIC SECTOR RESOURCES </li></ul><ul><li>GOVERNMENT OWNED AND CONTROLLED CORPORATIONS(GOCCs) AND THE LOCAL GOVERNMENT UNITS (LGUs) ALSO CONSIDERED SUBSTANTIAL CONTRIBUTORS TO TOTAL PUBLIC RESOURCES </li></ul><ul><li>GOCCs AND LGUs – REQUIRED TO PREPARE THEIR BUDGET CONSISTENT IN FORM AND TIMING WITH THAT OF THE N.G. TO FACILITATE COMPREHENSIVE EVALUATION OF THE OVER-ALL BUDGET. </li></ul>
  41. 41. CONSOLIDATED PUBLIC SECTOR FISCAL POSITION <ul><li>CPSFP : NET DEFICIT OR SURPLUS CALCULATED AFTER SUMMING-UP THE BUDGET BALNCES OF ALL GOVERNMENT ENTITIES </li></ul><ul><li>N.G., GOCCs, GFIs, LGUs, SOCIAL SECURITY INSTITUTIONS, OPSF, BSP, CB BOARD OF LIQUIDATORS </li></ul>
  42. 42. PPBS – GOVERNMENT SETTING <ul><li>PPBS IS A CONCEPT THAT STRESSES THE IMPORTANCE OF ESTABLISHING A STRONG LINKAGE BETWEEN PLANNING AND BUDGETING. </li></ul><ul><li>EMANATES FROM THE POLICY OF THE GOVERNMENT TO FORMULATE AND IMPLEMENT A NATIONAL BUDGET </li></ul><ul><li>NATIONAL BUDGET – INSTRUMENT OF NATIONAL DEVELOPMENT, REFLECTIVE OF NATIONAL OBJECTIVES, STRATEGIES AND PLANS </li></ul>
  43. 43. PPBS – GOVERNMENT SETTING <ul><li>UNDER THE PPBS CONCEPT, THE BUDGET IS ANCHORED ON THE DEGREE BY WHICH THE ACCOMPLISHMENT OF ECONOMIC PLANS AND THE ATTAINMENT OF TARGET CONTAINED IN THE MEDIUM-TERM PHILIPPINE DEVELOPMENT PLAN (MTDP) AND THE MEDIUM TEMR PUBLIC INVESTMENT PROGRAM (MTPIP) ARE SUPPORTED </li></ul>

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