Philippine National Budgeting Process

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Questions and Answers

What is the primary purpose of government budgeting?

To manage government expenditures

To create a healthy fiscal position

To prioritize and implement programs and projects

To allocate revenues and borrowed funds to attain economic and social goals (correct)

What enables the government to plan and manage its financial resources?

Capital budgeting

Budget call

The budget (correct)

Budget hearings

What is a key aspect of the budget preparation process?

Prioritizing programs and projects

Economic targets

Reconciling budget registries

Budget framework (correct)

What is the outcome of effective government budgeting?

Achievement of economic and social goals Signup and view all the answers

Who is responsible for consolidating financial reports?

COA Signup and view all the answers

What is the role of the COA in the financial reporting system?

Auditing accounting books Signup and view all the answers

What is the primary responsibility of the Development Budget Coordinating Committee?

Determining overall economic targets, expenditure levels, and financing plan Signup and view all the answers

Who is the chairman of the Development Budget Coordinating Committee?

The DBM Secretary Signup and view all the answers

What is the first step in preparing the annual national budget?

Determining overall economic targets, expenditure levels, and budget framework Signup and view all the answers

What is the role of the Office of the President in the Development Budget Coordinating Committee?

Member Signup and view all the answers

What is the primary goal of the budget framework?

To determine the overall economic targets and expenditure levels Signup and view all the answers

Which of the following is NOT a major activity involved in the preparation of the annual national budget?

Preparing the capital budget Signup and view all the answers

What is the main purpose of the Budget Call issued by the DBM?

To define the budget framework and set economic and fiscal targets Signup and view all the answers

What approach is used by government agencies to rank programs, projects, and activities in their budget estimates?

Capital budgeting approach Signup and view all the answers

What is the purpose of budget hearings conducted by the DBM technical panels?

To justify the proposed budgets of government agencies Signup and view all the answers

What is the main goal of setting economic and fiscal targets in the budget framework?

To guide the allocation of resources and ensure fiscal discipline Signup and view all the answers

According to the Constitutional requirement, what is the timeframe for the President to submit the proposed budget to Congress?

30 days from the opening of each regular session of Congress Signup and view all the answers

What is the purpose of presenting the proposed budget levels of departments/agencies/special purpose funds to the DBCC?

To obtain approval of the proposed budget levels Signup and view all the answers

Study Notes

Financial Reporting System of the National Government

The financial reporting system submits financial reports to the Commission on Audit (COA) for consolidation.
COA's accounting books are subject to audit by COA.
The system consolidates financial reports, reconciles budget registries with budget records of COA and the Department of Budget and Management (DBM).
It maintains accounting books of government agencies, DBM, and budget registries.

Budget Process

The Office of the President and Congress reconcile accounting books with cash records of the Bureau of the Treasury (BTr).
The budget process involves a series of steps that begins with the determination of overall economic targets, expenditure levels, revenue projection, and financing plan by the Development Budget Coordinating Committee (DBCC).
The DBCC is an inter-agency body composed of the DBM Secretary as Chairman, the Governor of the Bangko Sentral ng Pilipinas (BSP), the Secretary of the Department of Finance, the Director General of the National Economic and Development Authority, and a representative of the Office of the President as members.

Budget Preparation

The major activities involved in preparing the annual national budget include:
- Determination of overall economic targets, expenditure levels, and budget framework by the DBCC.
- Issuance of the Budget Call by the DBM, which defines the budget framework, sets economic and fiscal targets, and prescribes guidelines and procedures.
- Preparation of detailed budget estimates by government agencies, ranking programs, projects, and activities using the capital budgeting approach, and submission to DBM.
- Conduct of budget hearings where agencies justify their proposed budgets before DBM technical panels.
- Submission of the proposed expenditure program of departments/agencies/special purpose funds for confirmation by department/agency heads.
- Presentation of proposed budget levels of departments/agencies/special purpose funds to the DBCC for approval.
- Review and approval of the proposed budget by the President and the Cabinet.
- Submission of the proposed budget to Congress.

Importance of Government Budgeting

Government budgeting is critical in allocating revenues and borrowed funds to attain economic and social goals.
It enables the government to plan and manage its financial resources to support implementation of programs and projects that promote national development.
Through the budget, the government can prioritize and implement its programs, projects, and activities within its financial capability, as dictated by economic conditions.

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Description

This quiz covers the steps involved in the Philippine national budgeting process, including determination of economic targets, expenditure levels, and revenue projection. It also involves the role of the Development Budget Coordinating Committee (DBCC) in the process.