Allotment – is an authorization issued by the DBM to NGAs to incur obligations for specified

amounts contained in a legislative appropriation in the form of budget release documents. It is

also referred to as Obligational Authority.

Appropriation – is the authorization made by a legislative body to allocate funds for purposes
specified by the legislative or similar authority.

Approved Budget – is the expenditure authority derived from appropriation laws, government
ordinances, and other decisions related to the anticipated revenue or receipts for the budgetary
period.

Automatic Appropriations – are the authorizations programmed annually or for some other
period prescribed by law, by virtue of outstanding legislation which does not require periodic
action by Congress.

Budget Information – the budgetary information consists of, among others, data on
appropriations or the approved budget, allotments, obligations, revenues and other receipts,
and disbursements.

Continuing Appropriations – are the authorizations to support obligations for a specific

purpose or project, such as multi-year construction projects which require the incurrence of
obligations even beyond the budget year.

Disbursements – are the actual amounts spent or paid out of the budgeted amounts.

Final Budget – is the original budget adjusted for all reserves, carry-over amounts, transfers,
allocations and other authorized legislative or similar authority changes applicable to the budget
period.

New General Appropriations – are annual authorizations for incurring obligations during a
specified budget year, as listed in the GAA.

Obligation – is an act of a duly authorized official which binds the government to the immediate
or eventual payment of a sum of money. Obligation maybe referred to as a commitment that
encompasses possible future liabilities based on current contractual agreement.

Original Budget – is the initial approved budget for the budget period usually the General
Appropriations Act (GAA). The original budget may include residual appropriated amounts
automatically carried over from prior years by law such as prior year commitments or possible
future liabilities based on a current contractual agreement.

Revenues – are increases in economic benefits or service potential during the accounting
period in the form of inflows or increases of assets or decreases of liabilities that result in
increases in net assets/equity, other than those relating to contributions from owners.
Supplemental Appropriations – are additional appropriations authorized by law to augment
the original appropriations which proved to be insufficient for their intended purpose due to
economic, political or social conditions supported by a Certification of Availability of Funds
(CAF) from the BTr.

Obligational Authority or Allotment

The following are the documents which authorize the entity to incur obligations:

General Appropriations Act Release Document (GAARD) – serves as the obligational

authority for the comprehensive release of budgetary items appropriated in the GAA,
categorized as For Comprehensive Release (FCR).

Special Allotment Release Order (SARO) – covers budgetary items under For Later Release
(FLR) (negative list) in the entity submitted Budget Execution Documents (BEDs), subject to
compliance of required documents/clearances. Releases of allotments for Special Purpose
Funds (SPFs) (e.g., Calamity Fund, Contingent Fund, E-Government Fund, Feasibility Studies
Fund, International Commitments Fund, Miscellaneous Personnel Benefits Fund and Pension
and Gratuity Fund) are also covered by SAROs.

General Allotment Release Order (GARO) – is a comprehensive authority issued to all

national government agencies, in general, to incur obligations not exceeding an authorized
amount during a specified period for the purpose indicated therein. It covers automatically
appropriated expenditures common to most, if not all, agencies without need of special
clearance or approval from competent authority, i.e. Retirement and Life Insurance Premium.

Disbursement Authority

The following documents authorize the entity to pay obligations and payables:

Notice of Cash Allocation (NCA) – authority issued by the DBM to central, regional and
provincial offices and operating units to cover the cash requirements of the agencies;

Non-Cash Availment Authority (NCAA) – authority issued by the DBM to agencies to cover
the liquidation of their actual obligations incurred against available allotments for availment of
proceeds from loans/grants through supplier’s credit/constructive cash;

Cash Disbursement Ceiling (CDC) – authority issued by DBM to the Department of Foreign
Affairs (DFA) and Department of Labor and Employment (DOLE) to utilize their income
collected/retained by their Foreign Service Posts (FSPs) to cover their operating requirements,
but not to exceed the released allotment to the said post; and

Notice of Transfer of Allocation – authority issued by the Central Office to its regional and
operating units to cover the latter’s cash requirements.
Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain
physical assets such as property, industrial buildings, or equipment. CapEx is often used to
undertake new projects or investments by the firm. This type of financial outlay is also made by
companies to maintain or increase the scope of their operations.

Capital expenditures can include everything from repairing a roof to building, to purchasing a
piece of equipment, or building a brand new factory.

Current operating expenditure is the sum of all current expenditure relating to operating
activities. It is made up of:

 raw materials and consumables;

 other external charges;
 staff costs;
 value adjustments in respect of formation expenses and of tangible and intangible fixed
assets;
 value adjustments in respect of current assets;
 other operating charges.

Tax revenue is the income that is gained by governments through taxation.

Taxes and the related fines and penalties were recognized when collected or when these were
measurable and legally collectible. The related refunds, including those that were measurable
and legally collectible, were deducted from the recognized tax revenue

Fees and fines not related to taxes

The [Name of Entity] recognizes revenues from fees and fines, except those related to taxes,
when earned and the asset recognition criteria were met. Deferred income is recognized instead
of revenue if there is a related condition attached that would give rise to a liability to repay the
amount.

Other non-exchange revenues were recognized when it is probable that the future economic
benefits or service potential associated with the asset will flow to the entity and the fair value of
the asset can be measured reliably.