Budgeting-and-Financial-Management

1. Budgeting and Financial
Management in Public
Administration

2. Is this what people
in the budget
preparation long for?
Why?

3. 1. Budget Preparation and Execution
2. Revenue Generation
TOPICS

4.  Describe the budget preparation and
execution process in public
administration.
 Explain revenue generation and taxation in
public administration.
OBJECTIVES

5. Budget Preparation and Execution

6. 1. Budget Preparation:
Purpose: This phase involves setting budget
priorities, evaluating proposed budgets from
various government agencies, and submitting
them to the President and Cabinet.
Timeframe: Typically occurs from January to
July.

7. How is the annual national budget
prepared?
The preparation of the annual budget involves a series of
steps that begins with the determination of the …
 overall economic targets,
 expenditure levels,
 revenue projection and
 financing plan by the Development Budget Coordinating
Committee (DBCC).

8. The DBCC is an inter-agency body composed of;
• The DBM Secretary as Chairman and the Bangko Sentral
Governor,
• The Secretary of the Department of Finance,
• The Director General of the National Economic and
Development Authority
• Representative of the Office of the President as members
Development Budget Coordinating Committee
(DBCC)

10. To meet the Constitutional requirement
for the submission of the President’s
budget with 30 days from the opening
of each regular session of Congress, the
budget preparation phase is guided by a
budget calendar.

11. 2. Budget Legislation:
Purpose: The President submits the
proposed budget to Congress for
deliberation and ratification into the General
Appropriations Act (GAA).
Timeframe: Generally takes place from
August to December.

13. The Budget Preparation and Execution follows
the General Appropriations Act (GAA) is the
legislative authorization that contains the new
appropriations in terms of specific amounts for
salaries, wages and other personnel benefits;
maintenance and other operating expenses;
and capital outlays authorized to be spent for the
implementation of various programs/projects and
activities of all departments, bureaus and offices
of the government for a given year.
What is the General Appropriations Act?

14. 3. Budget Execution:
Purpose: Once the GAA is enacted, the
budget is implemented by government
agencies.
Timeframe: Takes place from January to
December.

15. How is the budget implemented?
Budget implementation starts with the release of
funds to the agencies. To accelerate the
implementation of government programs and projects
and ensure the judicious use of budgeted government
funds, the government adopted the Simplified Fund
Release System (SFRS) beginning 1995.

17. 4. Budget Accountability:
Purpose: This phase involves monitoring,
evaluating, and reporting on the actual
performance of government agencies in
implementing the budget.
Timeframe: Continues throughout the fiscal
year (January to December).

19. Revenue Generation

20. How does the Philippines generate revenue?
The Philippine income sources are…
1. Tax Revenues
2. Capital Revenues
3. Grants
4. Extra-Ordinary Income
5. Public Borrowings

21. Tax revenue is the income that is
collected by governments through
taxation. Taxation is the primary source of
government revenue.
Two kinds of Tax Revenues
 Direct Taxes
 Indirect taxes
1. Tax revenue

22. Capital revenues refer to the income
generated through the sale of long-term
assets, such as property and machinery.
2. Capital Revenues
land, buildings, and equipment,
or from gains on these sales like sale of public lands, buildings
and other structures, equipment, and other properties recorded
as fixed assets

23. Grants refer to voluntary contributions and aids
given to the Government for its operation on
specific purposes in the form of money and/or
materials, and do not require any monetary
commitment on the part of the recipient.
3. Grants

24. Extra-ordinary income refers to the repayment of
loans and advances made by government
corporations and local governments and the
receipts and shares in Income of the Central
Bank of the Philippines, and other receipts.
4. Extra-ordinary income

25. Public borrowings (i.e., proceeds of repayable
obligations generally with interest from domestic
and foreign creditors of the Government in
general, including the National Government and
its political subdivisions)
5. Public borrowings

26. Budgeting has only one
rule: Do not go over
budget.
-Leslie Tayne-

27. References
The Budgeting Process. Microsoft Word - Document7
Overview of the Budget System Ruling9