National budget


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Philippine Budget

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National budget

  1. 1. A government budget is a plan for financingthe government activities of a fiscal year preparedand submitted by responsible executive to arepresentative body whose approval andauthorization are necessary before the plan can beexecuted. It is more than mere estimate orstatement of receipts and expenditures; it is adefine proposal to be approved or rejected.
  2. 2. 1.Action is based on study.2. Cooperation is secured in the entire organization.3. Policies are established.4. Programs of activities are related to expected or available resources and economic conditions.5. Balanced Programs are developed.6. Coordinated effort is attained.7. Operations are controlled.8. Weaknesses in the government are revealed.9. Wastes are prevented.
  3. 3. I. As to NatureA. Annual Budget- a budget which covers a period of one year. It is the basis of an Annual appropriation.B. Supplemental Budget- a budget which purports to supplemental or adjust a previous budget which is deemed to inadequate for the purpose for which is intended.C. Special Budget- a budget of special in nature and submitted in a special forms on account of the fact that itemizations are not adequately provided in the Appropriation Act or that amounts are not included in the Appropriation Act.
  4. 4. II. As to Basis A. Performance Budget- a budget emphasizing the programs or services conducted and based on functions, activities and projects which focus attention upon the general character and nature of work to be done upon services to be rendered rather than the things to be acquired such as personal services, supplies and equipment. B. Line Item Budget- a budget the basis of which are the objects and expenditures such as salaries and wages, travelling expenses, freight, supplies, materials, equipment etc.
  5. 5. III. As to Approach and Technique A. Zero-Based Budgeting- a process which requires systematic consideration of all programs, projects and activities with the use of the defined ranking procedures.
  6. 6. IV. Other Forms of Budget A. Regional Budgeting- is a budget prepared consistent with the regional organization of the National Government, wherein the DBM identifies by region the expenditures of government agencies and releases of funds also on a regional basis. B. Long-Term-Budget- is a budget prepared for four or five year period or longer; longer range estimate revenue and expenditures requirements.
  7. 7. C. Key Budgetary Inclusions- refer to financial commitments of agencies pertaining to budget year. KBIs are maintained for the purpose of 1. controlling major financial commitments so that funds are not misappropriated or to prevent juggling of funds. 2. to disclose the funds and have clear picture of the expenditures; and . To track down mandatory obligations and insure funding of priority projects
  8. 8. 1. The formulation of the budget that supports the national development plan and reflects the objectives and strategies of the plan.2. The preparation of budget within the context of the total resources of government, including revenues and receipts, expenditures and borrowings of national and local government units, including government and controlled corporation.3. The preparation of the annual budget as an integral part of a long-term plan and long-term budget program
  9. 9. 4. The specification of multi-year requirements in each state of the budget process.5. The preparation of the budget at the regional level, consolidation and review at the department and central levels, taking into consideration the goals, plans and requirements of the regional offices in the interest of full government response to local thinking and initiative.6. The implementation and timing of major development projects which may affect the infrastructure program, debt ceilings, domestic credit, balance of international payments and determination of expenditure levels to insure the observance of established fiscal, monetary, international payment and other constraints.
  10. 10. 7. Analysis of budget estimates on a zero-base approach rather than on percentage or incremental approach.8. Basis for legislative discussion of the budget, limiting the time allotted for debate on the budget by the legislative body, thereby ensuing that the budget is approved before the start of the fiscal year.9. Adoption of a management information system for effective performance monitoring and financial evaluation and the development of standard costs for units of work measurement, in order to efeectively evaluate agency programs.
  11. 11. It is the government’s estimate of its income and expenditures. It is what the government plans to spend it for programs and projects and where the money will come from.Two major sources of money for our National Budget:1. Revenues2. Borrowings
  12. 12. Four Process of Budgeting• Budget Preparation- this place covers the estimation of government revenues, the determination of budgetary priorities and activities and the translation of these priorities and activities into budgetary estimates.
  13. 13. • 2.Budget Authorization- this phase includes the legislative body reviews the budget proposals of the President and formulates an appropriation act in accordance with the process specified in the Constitution.
  14. 14. 3. Budget Implementation/ Execution- This phase covers the various operational aspects of budgeting. This is the point where the agency can make use of the approved appropriation.
  15. 15. • Budget Accountability- this phase of the budget process is concerned with tracking and monitoring of actual expenditures, revenues, assets and liabilities of government agencies. It is particularly involved in the evaluation of expenditures and performance.
  16. 16. It is allocated for the implementation of various programs and projects, the operation of government offices, payment of salaries of government employees and payment of public debts.•
  17. 17. • Expenditures by expense class show how much is much is provided:• 1. Current Operating Expenditures- appropriations for the purchase of goods and services for conduct of normal government operations within a budget year; such as the salaries, maintenance and operating expenses, interest payment etc.
  18. 18. • 2. Capital Outlays- appropriations of goods and services the benefits of which extent beyond the budget year and which add th the assests of the government including investments in the capital stock of government oend or controlled corporations.
  19. 19. • 3. Net Lending- net advances by the national government for the servicing of government guaranteed corporate debt and loans outlays by the national government corporations
  20. 20. • 4. Debt amortization- contribution to the sinking fund which is utilized for principal repayments of our loans