The document outlines the budget process in the Philippines. It describes how the House of Representatives and Senate each deliberate on the President's budget, conducting committee hearings and floor debates. It then explains how a bicameral conference committee harmonizes differences in the versions passed by each chamber. The finalized budget is ratified by both houses and sent to the President for approval or veto. If not enacted by the start of the fiscal year, the previous year's budget is automatically reenacted.

2. 1. HOUSE DELIBERATIONS
THE HOUSE OF REPRESENTATIVES, IN PLENARY, ASSIGNS
THE PRESIDENT’S BUDGET TO THE HOUSE APPROPRIATIONS
COMMITTEE. THE COMMITTEE AND ITS SUB-COMMITTEES
THEN SCHEDULE AND CONDUCT HEARINGS ON THE BUDGETS
OF THE DEPARTMENTS AND AGENCIES AND SCRUTINIZE
THEIR RESPECTIVE PROGRAMS AND PROJECTS. IT THEN
CRAFTS THE GENERAL APPROPRIATIONS BILL (GAB).
IN PLENARY SESSION, THE GAB IS SPONSORED, PRESENTED
AND DEFENDED BY THE APPROPRIATIONS COMMITTEE AND
SUB-COMMITTEE CHAIRMEN. AS IN ALL OTHER LAWS, THE
GAB IS APPROVED ON SECOND AND THIRD READING
BEFORE TRANSMISSION TO THE SENATE. (NOTE: IN THE
FIRST READING, THE PRESIDENT’S BUDGET IS ASSIGNED TO
THE APPROPRIATIONS COMMITTEE.)

3. 2. SENATE DELIBERATIONS
AS IN THE HOUSE PROCESS, THE SENATE CONDUCTS ITS
OWN COMMITTEE HEARINGS AND PLENARY DELIBERATIONS
ON THE GAB. BUDGET DELIBERATIONS IN THE SENATE
FORMALLY START AFTER THE HOUSE OF REPRESENTATIVES
TRANSMITS THE GAB. FOR EXPEDIENCY, HOWEVER, THE
SENATE FINANCE COMMITTEE AND SUB-COMMITTEES
USUALLY START HEARINGS ON THE GAB EVEN AS HOUSE
DELIBERATIONS ARE ONGOING.
THE COMMITTEE SUBMITS ITS PROPOSED AMENDMENTS TO
THE GAB TO PLENARY ONLY AFTER IT HAS BEEN FORMALLY
TRANSMITTED BY THE HOUSE.

4. 3. BICAMERAL DELIBERATIONS
ONCE BOTH HOUSES OF CONGRESS HAVE FINISHED THEIR
DELIBERATIONS, THEY WILL EACH CONSTITUTE A PANEL TO
THE BICAMERAL CONFERENCE COMMITTEE. THIS COMMITTEE
WILL THEN DISCUSS AND HARMONIZE THE CONFLICTING
PROVISIONS OF THE HOUSE AND SENATE VERSIONS OF THE
GAB. A HARMONIZED VERSION OF THE GAB IS THUS
PRODUCED.
4. RATIFICATION AND ENROLLMENT
THE HARMONIZED OR “BICAM” VERSION IS THEN SUBMITTED
TO BOTH HOUSES, WHICH WILL THEN VOTE TO RATIFY THE
FINAL GAB FOR SUBMISSION TO THE PRESIDENT. ONCE
SUBMITTED TO THE PRESIDENT FOR HIS APPROVAL, THE
GAB IS CONSIDERED ENROLLED.

5. 5. THE VETO MESSAGE
THE PRESIDENT AND DBM THEN REVIEW THE GAB AND
PREPARE A VETO MESSAGE, WHERE BUDGET ITEMS
SUBJECTED TO DIRECT VETO OR CONDITIONAL
IMPLEMENTATION ARE IDENTIFIED, AND WHERE GENERAL
OBSERVATIONS ARE MADE. UNDER THE CONSTITUTION, THE
GAB IS THE ONLY LEGISLATIVE MEASURE WHERE THE
PRESIDENT CAN IMPOSE A LINE-VETO (IN ALL OTHER CASES,
A LAW IS EITHER APPROVED OR VETOED IN FULL).

6. 6. ENACTMENT
WHEN THE GAA IS NOT ENACTED BEFORE THE FISCAL
YEAR STARTS, THE PREVIOUS YEAR’S GAA IS
AUTOMATICALLY REENACTED. THIS MEANS THAT AGENCY
BUDGETS FOR PROGRAMS, ACTIVITIES AND PROJECTS
REMAIN THE SAME. FUNDING FOR PROGRAMS OR PROJECTS
THAT HAVE ALREADY BEEN TERMINATED IS REALIGNED FOR
OTHER EXPENDITURES. BECAUSE REENACTMENTS ARE
TEDIOUS AND PRONE TO ABUSE, THE AQUINO
ADMINISTRATION—WITH THE SUPPORT OF CONGRESS—HAS
COMMITTED TO ENSURE THE TIMELY ENACTMENT OF A NEW
GAA EVERY YEAR.

7. REENACTED BUDGETS
WHEN THE GAA IS NOT ENACTED BEFORE THE FISCAL YEAR
STARTS, THE PREVIOUS YEAR’S GAA IS AUTOMATICALLY
REENACTED. THIS MEANS THAT AGENCY BUDGETS FOR
PROGRAMS, ACTIVITIES AND PROJECTS REMAIN THE SAME.
FUNDING FOR PROGRAMS OR PROJECTS THAT HAVE
ALREADY BEEN TERMINATED IS REALIGNED FOR OTHER
EXPENDITURES. BECAUSE REENACTMENTS ARE TEDIOUS
AND PRONE TO ABUSE, THE AQUINO ADMINISTRATION—WITH
THE SUPPORT OF CONGRESS—HAS COMMITTED TO ENSURE
THE TIMELY ENACTMENT OF A NEW GAA EVERY YEAR.