Types of Existing Appropriations

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Questions and Answers

What are the two types of existing appropriations?

Obligatory and Discretionary

Continuing and Automatic (correct)

Programmed and Automatic

Recurring and Non-Recurring

Which of the following is an example of a continuing appropriation?

Appropriations for retirement and insurance premiums of government employees

Appropriations for servicing of domestic and foreign debts

Appropriations for the Agrarian Reform Program (ARP) (correct)

Appropriations for net lending to government corporations

What is the duration of continuing appropriations for capital outlays and maintenance and other operating expenses?

2 years (correct)

3 years

5 years

1 year

Which type of appropriation does not require periodic action by Congress?

Automatic Appropriation (D) Signup and view all the answers

What is the characteristic of programmed appropriations?

They already have definite funding sources and are readily implementable (D) Signup and view all the answers

Which of the following is an example of an automatic appropriation?

Appropriations for the servicing of domestic and foreign debts (C) Signup and view all the answers

What is the main difference between continuing and automatic appropriations?

Duration of the appropriation (B) Signup and view all the answers

Which of the following statements is true?

Only programmed appropriations are supported by resources and allocable during the budget year (B) Signup and view all the answers

What is the primary basis for the use of government funds in the Philippines?

Provision of the Philippines Constitution (C) Signup and view all the answers

What is the first step in the process of appropriating funds for government entities?

Individual agencies prepare their estimates of expenditures and submit them to DBM (D) Signup and view all the answers

What is the purpose of the budgeting process for government entities?

To secure funds for use in carrying out mandated functions (C) Signup and view all the answers

What happens to the proposed budgets of all agencies after DBM review?

They are consolidated by DBM for inclusion in the President's proposed budget (B) Signup and view all the answers

What is the final step in the appropriation process?

The President signs the General Appropriation Bill into law (D) Signup and view all the answers

What is the meaning of the term 'fund' in government?

Any of the above (C) Signup and view all the answers

What is the purpose of the hearing called by the House of Representatives and the Senate?

To explain the details of proposed budgets for inclusion in the General Appropriation Bill (A) Signup and view all the answers

Who is responsible for reviewing and consolidating proposed budgets of all agencies?

DBM (A) Signup and view all the answers

What is the main purpose of preparing a new government budget every year?

To justify government expenditures anew each year for cost efficiency and effectiveness (C) Signup and view all the answers

What are the two sources of appropriations that make up the annual budget?

New general appropriations and existing appropriations (B) Signup and view all the answers

What is the purpose of allocating the national government budget?

To implement various government programs and projects (A) Signup and view all the answers

What is required by the Constitution regarding the preparation of the government's budget?

The President must submit a budget of expenditure and sources of financing within 30 days from the opening of every regular session of Congress (D) Signup and view all the answers

What are existing or continuing appropriations?

Appropriations previously authorized by Congress (C) Signup and view all the answers

Why is it necessary to allocate resources to projects/activities?

To evaluate and review for cost efficiency and effectiveness (C) Signup and view all the answers

What is the main constraint on government spending?

No money can be withdrawn from the Treasury except in pursuance of an appropriation made by law (D) Signup and view all the answers

What is the classification of government expenditures?

By expense class, sector and implementing unit of government (A) Signup and view all the answers

Study Notes

Types of Appropriations

Existing or continuing appropriations are those that have been previously enacted by Congress and remain valid for expenditure of public funds.
There are two types of existing appropriations: continuing and automatic.

Continuing Appropriations

Refer to appropriations available to support obligations for a specified purpose or project.
Examples include multi-year construction projects and appropriations from existing laws such as RA 8150, RA 6657, and RA 8532.
Currently, appropriations for capital outlays and maintenance and other operating expenses are considered continuing appropriations but only for a period of 2 years.

Automatic Appropriations

Refer to appropriations programmed annually or for some other period prescribed by law, without requiring periodic action by Congress.
Examples include expenditures authorized under Presidential Decree (PD) 1967, RA 4860, and RA 245, as amended, for the servicing of domestic and foreign debts.

National Government Budget

The national budget is allocated for the implementation of various government programs and projects, operation of government offices, payment of salaries of government employees, and payment of public debts.
These expenditures are classified by expense class, sector, and implementing unit of government.

Budget Preparation

The government prepares a new budget every year in accordance with the Constitution.
The yearly preparation of the budget ensures that government entities continuously evaluate and review the allocation of resources to projects/activities for cost efficiency and effectiveness.

Sources of Appropriations

The sources of appropriations of the annual budget are new general appropriations legislated by Congress for every budget year under the General Appropriations Act (GAA) and existing appropriations previously authorized by Congress.
Under the Constitution, Article VI, Section 29, no money can be withdrawn from the Treasury except in pursuance of an appropriation made by law.

Fund and Budgeting

A fund in government refers to an appropriation, an allotment, or actual cash available.
The basis law governing the use of government funds is Article VI, Section 29 of the Philippines Constitution.
Funds for government entities are appropriated or authorized following a process involving individual agencies, the Department of Budget and Management (DBM), and Congress.

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Description

Learn about the two types of existing appropriations: continuing and automatic, and their roles in supporting public expenditures.