The views expressed in this presentation are the views of the author and do not necessarily reflect the

views or policies of the Asian

Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent.
ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their
use. Terminology used may not necessarily be consistent with ADB official terms.

THE PHILIPPINE FISCAL

INSTITUTIONS

RONALD RAY K. SAN JUAN

International Finance Group
Department of Finance, Philippines

Sources: DBM, DOF

 COUNTRY PROFILE
Population: 106,903,473 Est.

Government: Unitary Presidential

Constitutional Republic

Capital: Manila

Area: 301,780 sq. km.

Geographic Location: Southeast

Asia
 COUNTRY PROFILE
Economic Indicators

GDP* 354.31
Q1 2019; current USD billion

GDP per capita* 3.25

Q1 2019; current USD thousand

GDP growth rate* 6.6

Q1 2019

Inflation rate* 3.8

Q1 2019

HDI (2017)** 0.699

Sources: *International Monetary Fund DataMapper, www.imf.org

**UNDP, 2018
 COUNTRY PROFILE
Revenue and Expenditure Performance
 PH FISCAL INSTITUTIONS
Formulates/Implements Fiscal Policies & Programs
Development Budget Coordinating Council (DBCC)

Congress Commission
on Audit (COA)
 Budget Cycle
Vis-à-vis Roles of Fiscal Institutions

Budget
Preparation

Budget Budget
Accountability Legislation

Budget
Execution
 DBCC
An interagency body which reviews and approves revenue projections, borrowing
level, aggregate budge level and expenditure priorities. The committee also
recommends to the Cabinet and the President the consolidated public sector
financial position and the national government fiscal program.
Membership
DBM DOF NEDA OP BSP*

Revenue
Resource
generation & Overall macro- Presidential
allocation and Monetary policy
debt economic policy oversight
management
management
*Resource institution
DBCC-Executive Technical Board
Cash Programming Contingent
Macroeconomy Program Loans
& Monitoring Liabilities

Assessment and Assessment and

Recommendation of
projection of key formulation of fiscal Monitoring and
program loan
macroeconomic and financing management of CL
availment
assumptions program
 DBCC
An end-to-end participation
Budget Priorities Framework
• Approval of Macroeconomic Assumptions
• Approval of Medium-Term Fiscal and Financing
Program, including annual expenditure ceiling
• Recommendation of priority sectors
Preparation

Publication of Budget Documents

• Review of Macroeconomic Assumptions for publication in
the BESF
• Review of Medium-Term Fiscal and Financing Program for
publication in the BESF
• Approval of Fiscal Risks Statement

Presentation to the Cabinet/President

• Presentation of the Proposed National Budget
Legislation

Presentation to the Congress

• DBCC Briefing on the Proposed National Budget
 DBCC
An end-to-end participation

Quarterly Fiscal Program and Availment of

Execution

Program Loans
• Approval of the Quarterly Fiscal Program
• Approval of Program Loans
Accountability

Accountability Reports
• Publication of Mid-Year and Year-End Reports
 Budget Preparation
Approves budget
parameters Budget Forum/
Budget Call
(DBCC) Budget Hearings
(DBM)
(DBM & IAs)

Budget Review Budget Approval by

And Validation/ President and
Consolidation Confirmation Cabinet
(DBM)

Submission of the
President’s Budget
to Congress
 Budget Cycle
Vis-à-vis Roles of Fiscal Institutions

Budget
Preparation

Budget Budget
Accountability Legislation

Budget
Execution
 Congress
Bicameral Legislature:
(1) House of Representatives
(2) Senate

• Provides the legal framework for the implementation of fiscal

policies
• Enacts appropriation bills

• Appropriations are approved by the Legislative in the form of:

 General Appropriations Law
 Public Works Acts
 Supplemental Appropriations law
 Automatic Appropriations
 Budget Legislation
Congress Enacts Appropriation Bills and the President
Signs It Into Law
House House approval Senate
Hearings/ and submission Hearings/
Debate to Senate Debate

Senate Conference President

Approval Committee Signs the
(Bicameral) GAA
 Budget Cycle
Vis-à-vis Roles of Fiscal Institutions

Budget
Preparation

Budget Budget
Accountability Legislation

Budget
Execution
 Budget Execution

DBM releases funds

SAROs/NCAs

Agencies implement project/activity

 Budget Cycle
Vis-à-vis Roles of Fiscal Institutions

Budget
Preparation

Budget Budget
Accountability Legislation

Budget
Execution
 Budget Accountability
Process

In-Year and
other
Accountability Performance Public Mid-Year &
Year-End Audit Performance
Reports Review Disclosures Targets
Reports

BY SEP OF FY AND WITHIN

MONTHLY OR QUARTERLY THROUGHOUT THROUGHOUT
WITHIN THE NEXT FY FOLLOWING FY JAN
OF FY (WITH GAA)
 Commission on Audit (COA)
Functions per Article IX-D of the Constitution
1. Examine, audit and settle all accounts pertaining to the revenue and
receipts of, and expenditures or uses of funds and property owned or
held in trust by, or pertaining to the government;
2. Promulgate accounting and auditing rules and regulations including those
for the prevention and disallowance or irregular, unnecessary, excessive,
extravagant or unconscionable expenditures, or uses of government
funds and properties;
3. Submit annual reports to the President and the Congress on the financial
condition and operation of the government;
4. Recommend measures to improve the efficiency and effectiveness of
government operations; and
5. Keep general accounts of government and preserve the vouchers and
supporting papers pertaining thereto.
 CASE STUDY: THE 2019 BUDGET
ISSUES

1. Cash-based vs Obligation-based Budgeting

2. Amending Items of Appropriation

3. Presidential Veto
THANK YOU!