MPA 203 Local Governance & Administration

1. The Budget
Process
Budget
Preparation
Budget
Legislation
Budget
Execution
Budget
Accountability
MPA 203 Local Governance & Administration

2. Government Budgeting
Four Phases of the Budget Process
Budget
Preparation
Budget
Legislation
Budget
Execution
Budget
Accountability

3. BUDGET PROCESSBUDGET PROCESS
BUDGET
PREPARATION
Jan.-July
BUDGET
EXECUTION
Jan.-Dec.
BUDGET
ACCOUNTABILITY
Jan.-Dec.
BUDGET
LEGISLATION
Aug.-Dec.

4. DBCC
approves
budget
parameters
Budget
Hearings
Cut-off for
Inclusion of Items
in Budget
Proposal
Approval by
President
and Cabinet
Budget
Call
Budget
Consolidation
President Submits
Budget Proposal
to Congress
Budget Preparation
Government Budgeting

5. monetary
measures
and
policies
resource
generation
and debt
management
overall
economic
policy
Presidential
oversight
resource
allocation
and
management
Development Budget Coordination
Committee

6. House
Hearings/
Debate
House
Approval &
Submission to
Senate
Senate
Hearings/
Debate
Senate
Approval
Bicameral
Conferenc
e
Committee
President
Signs
into Law
Budget Legislation
Government Budgeting

7. Congress enacts appropriation bill (GAB)
and President signs it into law (GAA)
Budget Legislation
Government Budgeting
NEP GAB GAA

8. ARTICLE VI, SECTION 25 of the
Constitution
7. “ If, by the end of any fiscal year, the 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 reenacted and shall
remain in force and effect until the general
appropriations bill is passed by the Congress.”
Government Budgeting

9. President’s Veto Power
“The President shall have the power to veto any
particular item or items in an appropriation,
revenue or tariff bill, but the veto shall not
affect the item or items to which he does not
object to.”
Section 27(2), Article VI
Philippine Constitution
Government Budgeting

10. Budget Execution
 DBM releases funds
Agencies implement project/ activity
Government Budgeting

11. Budget Execution
11
AGENCY
prepares
MDP
DBM releases
GARO & NCA
Agency
implements
AUDITING &
ACCOUNTING
RULES AND
REGULATIONS

12. HOW FUNDS ARE RELEASED?
1. To authorize the agency to enter into obligation or
commitment :
• GAA as released Documents
Department/Agency/By Program,Project,Activity
further segregated into Not Needing Clearance
(NNC) and Needing Clearance (NC)
• General /Special Allotment Release Order GARO/
(SARO)
– released showing the purpose, by
allotment/object class, in peso amounts;
Government Budgeting

13. To obligate and pay expenses
Notice of Cash Allocation (NCA)
– the initial NCA is released automatically to
cover the first semester requirements;
– common fund concept, that is, allotment
class or projects are not specified in the
NCA;
HOW FUNDS ARE RELEASED…
Government Budgeting

14. To obligate and pay expenses . . . .
* Approved work and financial plan
* Availability of Allotment
* Subject to accounting and auditing Rules
and regulations ex. Tax withheld
HOW FUNDS ARE RELEASED…
Government Budgeting

15. Budget Accountability
Agency submits monthly/quarterly/annually
Financial Accountability Reports (FAR) to DBM
DBM assesses agency performance against
targets and financial accomplishment
(Budget Utilization) - Obligations and
Disbursements

16. Rationale/Purpose
• Monitor the efficiency of government’s
fund utilization - GDP
• Assess agency performance
• Provide a vital basis for sound
decision and policy making for rational
allocation of scarce resources

17. Source: