POLYTECHNIC UNIVERSITY OF THE PHILIPPINESSTA. MESA, MANILA

BUDGETARY PROCEDURES

Presented :

Ms. Lhey E. Vinoya

THE BUDGET PROCESS AND THE PHILIPPINE CONGRESS

A. Budgetary OverviewB. The Constitutional Provisions and Related Laws in

the Budget ProcessC. Budget Process

A. BUDGETARY OVERVIEW National Budget – is the government’s estimate of its

income and expenditures.

Budgeting – refers to methods and practices of government planning, adopting, and executing financial policies and programs.

Budget – refers to a plan of expressing in monetary terms the operating program and means of financing of a government for a definite period of time.

DIMENSIONS OF THE BUDGET

Classifications:

I. By sectorII. By cost structureIII. By expense class and by objectIV. By region, V. By type of appropriation

I. BY SECTOR

1. Social Service Expenditure2. Economic Service Expenditure3. Defense Expenditure4. General Public Service5. Debt Burden

II. BY COST STRUCTURE

1. For General Administration & Support Services

2. As Support to Operations for the facilitative functions and services, staff and technical support

3. For Operations of regular activities addressing agency mandate

4. For projects such as homogenous group of activities

III. BY EXPENSE CLASS AND BY OBJECT

1. Current Operating Expenditures for personal services; MOOE

2. Capital Outlays for investments, loans, livestocks and crops, land/land improvements, building/structures, furniture/fixtures

MAJOR RECIPIENT OF GOVERNMENT 1. NGAs The LGU’s GOCCs

IV. BY REGIONAL ALLOCATIONS

Is apportioned for each of the various regions

V. BY TYPE OF APPROPRIATIONS

1. By General Appropriations2. By Supplemental Appropriations3. Continuing Appropriations4. Automatic Appropriations

SOURCES OF FUNDS

A. RevenuesB. BorrowingsC. Obligations Budget vs. Cash BudgetD. National Government Deficit vs. Consolidated

Public Sector Deficit

B. CONSTITUTIONAL PROVISIONS & MAJOR LAWS AFFECTING THE BUDGET/BUDGET PROCESS1. Philippine Constitution

a. Section 24, Article VI, which states that all appropriations, revenue or tarriff bills increase of the public debt, bills of local application and private bills shall originate in the House of Representatives, but the Senate may propose or concur with amendments.

b. Section 25 (1), Article VI states that the Congress may not increase the appropriations recommended by the President for the operation of the government as specified in the budget. The form, content, and manner of preparation of the budget shall be prescribe by law.

c. Section 25 (2), Article VI states that no provision or enactment shall be embraced in the General Appropriations Bill unless it relates specifically to some particular appropriation therein. Any such provision or enactment shall be limited in its operation to the appropriations to which it relates

d. Section 25 (4), Article VI: “ A special appropriations bill shall specify the purpose for which it is intended, and shall be supported by funds actually available as certified by the National Treasurer, or to be raised by a corresponding revenue proposal therein.”

e. Section 25 (5), Article VI; “ No law shall be passed authorizing any transfer of appropriations, however, the President (of the Philippines, the President (of the Philippine) Senate, the Speaker of the (Philippine) House of the Representatives, the Chief Justice of the (Philippine) Supreme Court, and the Heads of the Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations.”

f. Section 25 (7), Article VI: “If by the end of the fiscal year, the (Philippine) 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 re-enacted and shall remain in force and effect until the General Appropriations Bill is passed by the (Philippine Congress).”

g. Section 22, Article VII: “The President shall submit to the congress within thirty (30) days from the opening of every regular session, as the basis of the General Appropriations Bill, a budget of receipts and expenditures and sources of financing including receipts from existing and proposed revenue measures.

That ends my report!!