1. POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
STA. MESA, MANILA
BUDGETARY PROCEDURES
Presented :
Ms. Lhey E. Vinoya
2. THE BUDGET PROCESS AND THE
PHILIPPINE CONGRESS
A. Budgetary Overview
B. The Constitutional Provisions and Related Laws in
the Budget Process
C. Budget Process
3. A. BUDGETARY OVERVIEW
National Budget – is the government’s estimate of its
income and expenditures.
Budgeting – refers to methods and practices of
government planning, adopting, and executing
financial policies and programs.
Budget – refers to a plan of expressing in monetary
terms the operating program and means of financing
of a government for a definite period of time.
4. DIMENSIONS OF THE BUDGET
Classifications:
I. By sector
II. By cost structure
III. By expense class and by object
IV. By region,
V. By type of appropriation
5. I. BY SECTOR
1. Social Service Expenditure
2. Economic Service Expenditure
3. Defense Expenditure
4. General Public Service
5. Debt Burden
6. II. BY COST STRUCTURE
1. For General Administration & Support
Services
2. As Support to Operations for the facilitative
functions and services, staff and technical
support
3. For Operations of regular activities addressing
agency mandate
4. For projects such as homogenous group of
activities
7. III. BY EXPENSE CLASS AND BY
OBJECT
1. Current Operating Expenditures for personal
services; MOOE
2. Capital Outlays for investments, loans,
livestocks and crops, land/land improvements,
building/structures, furniture/fixtures
9. IV. BY REGIONAL ALLOCATIONS
Is apportioned for each of the various regions
10. V. BY TYPE OF APPROPRIATIONS
1. By General Appropriations
2. By Supplemental Appropriations
3. Continuing Appropriations
4. Automatic Appropriations
11. SOURCES OF FUNDS
A. Revenues
B. Borrowings
C. Obligations Budget vs. Cash Budget
D. National Government Deficit vs. Consolidated
Public Sector Deficit
12. B. CONSTITUTIONAL PROVISIONS &
MAJOR LAWS AFFECTING THE
BUDGET/BUDGET PROCESS
1. Philippine Constitution
a. Section 24, Article VI, which states that all
appropriations, revenue or tarriff bills increase
of the public debt, bills of local application and
private bills shall originate in the House of
Representatives, but the Senate may propose
or concur with amendments.
13. b. Section 25 (1), Article VI states that the Congress
may not increase the appropriations recommended by
the President for the operation of the government as
specified in the budget. The form, content, and
manner of preparation of the budget shall be
prescribe by law.
c. Section 25 (2), Article VI states that no provision or
enactment shall be embraced in the General
Appropriations Bill unless it relates specifically to
some particular appropriation therein. Any such
provision or enactment shall be limited in its
operation to the appropriations to which it relates
14. d. Section 25 (4), Article VI: “ A special appropriations
bill shall specify the purpose for which it is intended,
and shall be supported by funds actually available as
certified by the National Treasurer, or to be raised by
a corresponding revenue proposal therein.”
e. Section 25 (5), Article VI; “ No law shall be passed
authorizing any transfer of appropriations, however,
the President (of the Philippines, the President (of
the Philippine) Senate, the Speaker of the
(Philippine) House of the Representatives, the Chief
Justice of the (Philippine) Supreme Court, and the
Heads of the Constitutional Commissions may, by
law, be authorized to augment any item in the
general appropriations law for their respective offices
from savings in other items of their respective
appropriations.”
15. f. Section 25 (7), Article VI: “If by the end of the fiscal
year, the (Philippine) Congress shall have failed to
pass the General Appropriations Bill for the ensuing
fiscal year, the General Appropriations Law for the
preceding fiscal year shall be deemed re-enacted and
shall remain in force and effect until the General
Appropriations Bill is passed by the (Philippine
Congress).”
g. Section 22, Article VII: “The President shall submit to
the congress within thirty (30) days from the opening
of every regular session, as the basis of the General
Appropriations Bill, a budget of receipts and
expenditures and sources of financing including
receipts from existing and proposed revenue
measures.
