2. EXEPENDITURE
MANAGEMENT
• refers to the process of Planning,
Implementing, & Controlling Government
Spending.
MANAGING LOCAL EXPENDITURES 2
• involves determining how much money should
be allocated for each department or program,
ensuring that the funds are spend efficiently
and effectively, and monitoring the budget to
prevent overspending.
PRM 565.2
3. EXEPENDITURE
MANAGEMENT
• Department of Budget and Management (DBM)
• Bureau of Treasury (BTr)
• Commission on Audit (COA)
• Government Procurement Policy Board (GPPB)
• Department of Finance (DOF)
• Bureau of Internal Revenue (BIR)
• Department of Public Works and Highways (DPWH)
MANAGING LOCAL EXPENDITURES 3
PRM 565.2
4. EXEPENDITURE
MANAGEMENT
• Conditional Cash Transfer Program
• Build, Build, Build Program
• Universal Health Care Program
• Education Program
• Sustainable Livelihood Program
• Comprehensive Agrarian Reform Program
• National Disaster Risk Reduction and Management Program
MANAGING LOCAL EXPENDITURES 4
PRM 565.2
8. WEAKNESSES IN EXPENDITURE MANAGEMENT
• LACK OF ACCOUNTABILITY
• INADEQUATE BUDGETING
• INEFFICIENT PROCUREMENT
PROCESSES
• INADEQUATE FINANCIAL
REPORTING
MANAGING LOCAL EXPENDITURES 8
PRM 565.2
• POLITICAL INTERFERENCE
• INADEQUATE INTERNAL
CONTROLS
9. EXEPENDITURE
MANAGEMENT POLICY
• refers to a set of rules, regulations, and
procedures that a government or organization
adopts to manage its expenditures effectively.
MANAGING LOCAL EXPENDITURES 9
• the goal is to ensure that an organization’s
spending is consistent with its objectives and
priorities.
PRM 565.2
10. INCORPORATING FINANCIAL CONSTRAINTS
AND EXAMINING ALTERNATIVES
• PRIORITIZING EXPENDITURES
- involves setting clear goals and criteria for evaluating each
expenditure and prioritizing those with the highest expected
returns.
• FISCAL DISCIPLINE
- is essential to ensure that government spending does not
exceed its available resources.
• STREAMLINING BUREAUCRATIC PROCESSES
- this approach includes simplifying procedures, improving
transparency, and reducing red tape.
• CAPACITY BUILDING
- is necessary to ensure that government agencies have the
skills and resources to manage expenditures efficiently.
PRM 565.2 MANAGING LOCAL EXPENDITURES 10
• ALTERNATIVE FINANCING
- the government can explore alternative financing
mechanisms to fund its expenditures.
12. CAPITAL INVESTMENT PLAN
DEFINITION
• a strategic document that outlines a
government/organization’s capital spending priorities over a
specified period, typically ranging from three to five years.
• refer to the funds allocated towards the purchase or
improvement of long-term assets such as buildings,
infrastructure, equipment, or technology.
• it helps goverments prioritize investments and ensure that
funding is allocated efficiently and effectively.
EXAMPLES
• Expansion of Production Facility
• Upgrading of Technology
• Infratructure Development
• Real Estate Development
• Renewable Energy
PRM 565.2 MANAGING LOCAL EXPENDITURES 12
13. MULTIYEAR BUDGET PLAN
DEFINITION
• a financial plan that outlines the projected income and
expenditure for a government entity over a period of two or
more years.
• this type of budget provides a longer-term perspective that
allows for better planning and management of resources.
• can help governments identify potential challenges and
opportunities and provide a more accurate picture of the
costs of various programs and policies.
EXAMPLES
• Medium-Term Expenditure Framework (MTEF)
• Zero-Based Budgeting System (ZBB)
• Cash-based Budgeting System
PRM 565.2 MANAGING LOCAL EXPENDITURES 13
14. BUDGETARY CONTROLS
BUDGET AUTHORIZATION
- required to follow annual
budget approved by
congress.
- they cannot spend more
than what has been
authorized in the budget.
ALLOTMENT RELEASE
- release of funds is done in
tranches
- subject to compliance with
certain conditions
CASH DISBURSEMENT
- ensures that all transactions
are recorded and monitored
in real-time.
PRM 565.2 MANAGING LOCAL EXPENDITURES 14
15. BUDGETARY CONTROLS
ACCOUNTING AND
AUDITING
- All financial transactions are
recorded and monitored by
COA to ensure compliance
with regulations and to
detect any irregularities.
PERFORMANCE
MONITORING
- uses a performance-based
budgeting system to monitor
the performance of agencies
and departments in
achieving their goals and
objectives.
PROCUREMENT
REGULATIONS
- must follow the Government
Procurement Reform Act,
which provides guidelines
and procedures for the
procurement of goods and
services.
PRM 565.2 MANAGING LOCAL EXPENDITURES 15