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MAED – Sec. 2
Budgeting is the translation of programs, projects and activities into their resource
requirements which are expressed in monetary financial terms. It allocates resources to
specific actions deemed necessary to achieve predetermined objectives. Additionally, a time
element is introduced within which resources are made available and activities are to be
carried out. Additionally, a time element is introduced within which resources are made
available and activities are to be carried out.
1. National Level
The implementation of the sectoral components of the multi-year development
plan is the responsibility of the different instrumentalities of government, with the
educator sector plan being the responsibility of DECS. In line with the annual
budget preparation process, the DECS annual agency plan is formulate, guided by
the policies and strategies embodied in the multi-year plan. It spells out the specific
activities to be implemented for the coming budget year, aimed at achieving the
targets set for that period. The annual budget allocated the resources needed for
these specific activities.
2. Regional and Local Level
2. Performance Budgeting
Performance budgeting is a management-oriented system of budgeting which
measures actual or estimated results in terms of benefits accruing to the public and
their unit costs.
In contrast to the line-system of budgeting, performance budgeting is based on
receipts and expenditures but also includes brief description of what is to be
achieved after each item of expenditure. It is a goal-oriented design.
A. Budget Preparation
2. The DBCC estimates the anticipated revenues of the government on the basis of
historical performance projections of economic conditions in the incoming year and
revenue impact of proposed revenue measures. It likewise estimates the cost needed in
the implementing the projects that will achieve the established goals in the
development plan.
B. Budget Authorization
Congress discusses the budget with focus on policy, budget levels, thrusts and strategy.
The legislative body is prohibited from increasing the total appropriations submitted by the
President in the budget proposal.
1. All expenditures for (a) personal retirement premiums, government service insurance
and other similar fixed expenditures, (b) principal interest on public debt, (c) national
government guarantees of obligation which are automatically appropriated are
mandatorily provided for.
2. Unexpected balances of appropriations that are authorized in the General Appropriation
Act will be reverted to the unappropriated surplus of the General Fund at the end of
fiscal year and will not be available for exprenditure except by subsequence legislative
enactment.
3. However, appropriations for capital outlays will remain valid until fully spend or
reverted.
4. The balances of continuing appropriations will be reviewed as part of the annual budget
preparation process and the DBM may approve reversion of fund for a certain activitiy
provided and the Appropriation Act.
C. Budget Execution
Another major phase of the budget process is the budget execution. Authorized
appropriations can only be available after complying with established guidelines or
procedures, explains Bacani.
1. The Head of an agency should submit a request for allotment and funds to the
Secretary of Budget showing the estimated amounts needed for each function,
activity, purpose for which the funds are to be expanded, during the applicable
allotment period using the forms prescribed by the DBM.
2. Based on the allotment system, the fiscal system is divided into four quarters, with
the quarters starting on the first day of January, April, July, and October.
3. Request for allotment will be approved by the Secretary of the Budget after
determining that such amount will be spent for the purpose as approved.
4. At the end of every quarter, the head of each department, office or agency will
report to the Budget Secretary the current status of its appropriation, cumulative
allotments/obligations incurred/liquidated, total disbursement, and unliquidated
obligation, unobligated and unexpended balances and the results of expended
appropriations.
5. The Budget Secretary is authorized to modify and amend any allotment previously
issued if funds are less than the anticipated receipts from taxes or other sources.
6. The approved expenditures programs will be the basis for fund releases during the
fiscal period subject to the policies, rules and regulations.
7. The DBM may authorize the use of savings realized by an agency during a given year
to meet non-recurring expenditures in a subsequent year.
D. Budget Accountability
The concept of accountability in budgeting gives emphasis to the results of expenditures
allocated and incurred. It refers to the evaluation of the quantitative and qualitative measures
of an agency performance as reflected in the units of work measurement and other indicators of
agency performance.
a. Monitoring the efficiency and effectiveness with which the fund are being
utilized, and
b. Verifying the attainment of goals established in the budget.
3. Accountability constitutes: