Budget Process and Capital Outlay Allocation

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Questions and Answers

What is the Modified Disbursement Scheme mostly used for?

Issuance of Guidelines

Budget Execution Document

Incurring Obligations

Disbursement agencies chargeable against the treasury (correct)

No advance payments shall be made unless goods have been delivered or services rendered.

True

Budget execution is the process by which the financial resources made available to an agency are directed and controlled toward achieving the purposes and objectives for which ___________ were approved.

budgets

Match the following terms with their definitions:

Performance Informed Budget = New approach for a more responsive, transparent, and accountable public expenditure management system. CITIZEN ENGAGEMENT = Through Civil Society Organization, the citizen will help safeguard the performance of agencies on how they use the public budget and deliver their services to people. BUDGET ACCOUNTABILITY REPORTS (BARs) = Agencies report their actual physical and financial performance with assessment aided by performance indicators. Signup and view all the answers

Define government budgeting.

Government Budgeting is the critical exercise of allocating revenues and borrowed funds, and management of government expenditures. Signup and view all the answers

Why is government budgeting important?

Government budgeting is important because it enables the government to plan and manage its financial resources to support the implementation of various programs and projects that best promote the development of the country. Signup and view all the answers

What are the major processes involved in national government budgeting?

Budget Execution Signup and view all the answers

What is the function of the Development Budget Coordination Committee (DBCC)?

The DBCC recommends to the President the amount set to be allocated for capital outlay under each development activity for various capital or infrastructure projects. Signup and view all the answers

Stakeholder engagement is a new feature introduced in budget preparations to increase citizen participation.

True Signup and view all the answers

What are the three main pillars that guided the crafting of the 2022 National Budget?

Building Resilience amidst the Pandemic; Sustaining the Momentum towards Recovery; Continuing the Legacy of Infrastructure Development Signup and view all the answers

What is the purpose of the Veto Message prepared by the President and DBM?

Both a and b Signup and view all the answers

If the General Appropriations Act (GAA) is not enacted before the fiscal year starts, the previous year's GAA is ________________.

automatically reenacted Signup and view all the answers

Match the following terms with their descriptions:

ABM = Agency Budget Matrix - disaggregation of agency budget SARO = Special Allotment Release Order - specific authority for obligations Allotment = Authorization by DBM for obligations GAB = General Appropriations Bill - legislative appropriation document Signup and view all the answers

Study Notes

Budget Process

Budget is an estimation of revenue and expenses over a specified future period of time
Process involves series of actions to achieve a particular end

Government Budgeting

Critical exercise of allocating revenues and borrowed funds, and management of government expenditures
Enables the government to plan and manage financial resources to support implementation of various programs and projects that promote country's development
Important because it allows government to allocate resources effectively to achieve development goals

Major Processes Involved in National Government Budgeting

Budget Preparation
Budget Legislation
Budget Execution
Budget Accountability

Budget Preparation

Starts with Budget Call and ends with President's submission of proposed budget to Congress
DBCC determines economic targets, expenditure levels, revenue projection, deficit levels, and financing plan
DBM issues Budget Call to all agencies, including State Universities and Colleges, and separate Corporate Budget Call to GOCCs and GFIs
DBCC recommends for Presidential approval the level of annual government expenditure program and ceiling of government spending
DBCC recommends allocation of expenditures for each development activity between current operating expenditures and capital outlay

Budget Preparation Phases

Consolidation, Validation, and Confirmation
Stakeholder Engagement
Technical Budget Hearings
Executive Review
Presentation to President and Cabinet

Budget Legislation

President submits to Congress the National Expenditure Program (NEP), Budget of Expenditures and Sources of Financing (BESF), and President's Budget Message
The President's Budget, the "President's Budget", consists of Budget of Expenditures and Sources of Financing (BESF), National Expenditure Program (NEP), and President's Budget Message
House of Representatives assigns the President's Budget to the House Appropriations Committee
Committee and its Sub-Committees schedule and conduct hearings on budgets of departments and agencies
GAB is crafted by the Committee and then sponsored and debated in the plenary session

Ratification and Enrollment

The Harmonized or "Bicam" Version is submitted to both Houses, which vote to ratify the final GAB for submission to the President
Once submitted to the President for approval, the GAB is considered enrolled### Budget Process
The Bicameral Conference Committee discusses and harmonizes conflicting provisions of the House and Senate Versions of the General Appropriations Bill (GAB).
The GAB is distributed to the Philippine House of Representatives, who vote on the approval of the bill on the 3rd Reading.
The approved GAB is transmitted to the Philippine Senate for consideration.
The Bicameral Conference Committee settles and reconciles differing provisions of each Chamber's version of the bill.
The Conference Committee Report is ratified by each chamber.
The enrolled copy of the GAB is finalized and printed, and then signed by the President.

Budget Execution

Budget execution is the process by which financial resources are directed and controlled to achieve purposes and objectives.
The process involves compliance with both legal and administrative requirements.
The government enacts the budget, and civil society organizations (CSOs) analyze and assess how funds are spent to implement policies, programs, and projects.

Budget Execution Process

The Department of Budget and Management (DBM) issues guidelines for budget execution.
Agencies submit their Budget Execution Documents (BEDs) at the start of the budget execution.
The BED includes a Physical and Financial Plan (PFP) and a Monthly Cash Program.

Budget Accountability

Budget accountability is the final phase of the budget process, where agencies report their actual physical and financial performance.
Performance targets are set, and assessment of physical achievements is aided by performance indicators.
Budget Accountability Reports (BARs) are submitted by agencies.
Public disclosure of budget execution is required.
The Development Budget Coordination Committee publishes national government budgeting and performance of programs and projects.

Performance Review and Audit

The Commission on Audit (COA) examines how agencies use funds from the national budget.
The DBM uses COA's audit reports to confirm that budget and performance of agencies, and all expenses have been disbursed in accordance with accounting regulations.
Mid-year and year-end reports are submitted to review performance and budget execution.

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Description

This quiz covers the budget process and the allocation of funds for capital outlay under various development activities and infrastructure projects. It also assesses the reliability of revenue estimates and explores the compilation and review process.