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BUDGETARY ACCOUNTS

WHAT THE 1987 (TITA CORYS TIME) CONSTITUTION PROVIDES ON GOVERNMENT MONEY:
.... NO MONEY SHALL BE PAID OUT OF THE TREASURY EXCEPT IN PURSUANCE OF AN APPROPRIATION OF LAW....

MEANING.....
NO PAYMENT FROM PUBLIC MONEY IF NO LAW AUTHORIZING SUCH PAYMENT AND SPECIFYING SUCH PURPOSE MEANING FURTHER THAT NO PAYMENT UNLESS NO LAW PASSED BY CONGRESS/ SENATE --- THE GENERAL

APPROPRIATIONS ACT..

MEANING...
THE DEPT OF BUDGET AND MANAGEMENT
--- UPON APPROVAL OF THE BUDGET LAW

WILL START ISSUING ALLOTMENTS OR AUTHORITY TO GOVT AGENCIES TO INCUR OBLIGATIONS OR ENTER INTO COMMITMENTS OR SPEND GOVT MONEY

MEANING FURTHER ....


THE DBM ....

DEPENDING ON THE LEVEL OF ALLOTMENTS TO AGENCIES CONCERNED, WILL ONLY START RELEASING FUNDS ONLY UPON APPROVAL OF THE GENERAL APPROPRIATIONS LAW (OR NATIONAL BUDGET)

GENERAL ACCOUNTING PLAN ... WHAT IS THIS?


SHOWS THE OVERALL ACCTG SYSTEM OF A GOVERNMENT UNIT OR AGENCY
ACCOUNTING SYSTEMS ARE THE

FOLLOWING: BUDGETARY ACCOUNTS SYSTEM RECEIPT/ INCOME & DEPOSIT SYSTEM DISBURSEMENT SYSTEM, & FINANCIAL REPORTING SYSTEM

Q.: WHAT IS THE SYSTEM OF PRESCRIBING THE PROCEDURES FOR RECORDING APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS?
a. Fund accounting b. Government accounting c. Obligation accounting

d. Budgetary accounting

Q.: WHAT IS THE SYSTEM OF PRESCRIING THE PROCEDURES FOR RECO DING APPROPRIATIONS, ALLOTMENTS AND OBLIGATIONS?
a. Fund accounting b. Government accounting c. Obligation accounting

d. Budgetary accounting

BUDGETING.....
IT IS PLANNING ...
IT IS CONTROLLING ....

PLANNING DELVES INTO THE FUTURE OBJECTIVES AND BUDGETS TO ATTAIN SUCH OBJECTIVES; CONTROLLING STEPS TAKEN BY MGT TO ENSURE OBJECTIVES ARE ATTAINED

GOVERNMENT OR NATIONAL BUDGET


PLAN FOR FINANCING ALL GOVT ACTIVITIES FOR A FISCAL YEAR PREPARED AND SUBMITTED BY AN AGENCY HEAD TO

THE REPRESENTIVE BODY (CONGRESS) ....TO OBTAIN APPROVAL AND AUTHORIZATION BEFORE ANY PLAN IS DONE

GOVERNMENT OR NATIONAL BUDGET


INCLUDES .... REVENUES AND EXPENDITURES OF PAST YEAR AND ENSUING YEAR ARE REPORTED FOR PURPOSES OF: KNOWING THE GENERAL CHARACTER, PURPOSE AND AMT OF GOVT EXPENDITURE; DETAILED DATA IN MAINTAINING AND REFLECTION OF PERFORMANCE OF A PARTICULAR GOVT UNIT.

GOVERNMENT OR NATIONAL BUDGET


ALSO EMBODIES HOW SUCH MONEY IS TO BE OBTAINED, OR THE MEANS AND COST OF FINANCING SUCH NEED GIVEN A TIME

FRAME CONTROLS AMOUNTS TO BE RAISED, IF ANY, AND PROPOSED AMOUNT FOR SPENDING THIS IS A PROGRAM ABOUT RAISING/ COLLECTING MONEY AND HOW IT SHALL BE SPENT.

GOVERNMENT OR NATIONAL BUDGET


THEREFORE .....

THERE IS A NEED TO CLASSIFY INCOME AND EXPENDITURES TO REFLECT SUCH ACCOUNTS --- SO THAT THESE DATA COULD BE USED IN FUTURE BUDGE ESTIMATES

Q.: ITS MAIN CONCERN IS THE AVAILABILITY AND USE OF FUNDS FOR PUBLIC SERVICES
a. Commission on audit b. Bureau of the treasury c. Department of finance d. National budgetary system e. Bangko sentral

Q.: ITS MAIN CONCERN IS THE AVAILABILITY AND USE OF FUNDS FOR PUBLIC SERVICES
a. Commission on audit b. Bureau of the treasury c. Department of finance d. National budgetary system e. Bangko sentral

FORM AND CONTENT OF GOVT/ NATIONAL BUDGET --- STARTING POINT


IT IS THE EXECUTIVE BRANCH- (OP) THAT

PREPARES AND SUBMITS THE NATIONAL BUDGET FOR CONGRESSIONAL APPROVAL

FORM AND CONTENT OF GOVT/ NATIONAL BUDGET


TIMELINE : W/N 30 DAYS FROM OPENING OF REGULAR SESSION (LAST MONDAY OF JULY EVERY YEAR) EXECUTIVE BRANCH SUBMITS TO CONGRESS --- THE NATIONAL BUDGET, AS BASIS OF THE GENERAL APPROPRIATIONS ACT

FORM AND CONTENT OF GOVT/ NATIONAL BUDGET


CONTENTS OF THE NATIONAL BUDGET: PRESIDENTIAL MESSAGE THAT CONTAINS --THRUST OF GOVT IMPACT ON DEVELOPMENT GOALS MONETARY AND FISCAL OBJECTIVES & IMPLICATIONS OF REVENUE, EXPENDITURES AND DEBT PROPOSALS

FORM AND CONTENT OF GOVT/ NATIONAL BUDGET


WILL ALSO INCLUDE SUMMARY FS DETAILING: ESTIMATED EXPENDITURES AND PROPOSED APPROPRIATIONS ESTIMATED RECEIPTS ACTUAL APPROPRIATIONS OF LAST COMPLETED FISCAL YEAR

FORM AND CONTENT OF GOVT/ NATIONAL BUDGET


ESTIMATED EXPENDITURES AND RECEIPTS AND ACTUAL OR PROPOSED APPROPRIATIONS DURING THE FY IN

PROGRESS; AND STATEMENTS OF CONDITION OF THE NATIONAL TREASURY ..... AT THE END OF LAST COMPLETED FY; AT THE END OF FISCAL YEAR INPROGRESS; & ESTIMATED CONDITON AT END OF ENSUING FY

Q.: IT IS A STATEMENT OF ESTIMATED RECEIPTS AND EXPENSES OF THE GOVERNMENT WHICH IS THE BASIS FOR THE GENERAL APPROPRIATIONS LAW.
a. b. c. d. e.

National government budget Local government budget National and local government budgets Statement of budget operations Government financial statements.

Q.: IT IS A STATEMENT OF ESTIMATED RECEIPTS AND EXPENSES OF THE GOVERNMENT WHICH IS THE BASIS FOR THE GENERAL APPROPRIATIONS LAW.
a. b. c. d. e.

National government budget Local government budget National and local government budgets Statement of budget operations Government financial statements.

FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS


WHAT IS THE TERM FISCAL ALL ABOUT?

.... IT IS ABOUT PUBLIC FINANCE AND FINANCIAL TRANSACTIONS, BELONGING TO THE PUBLIC OR GOVERNMENT TREASURY

FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS (THERE ARE 8)


1. NO MONEY SHALL BE USED EXCEPT IN

PURSUANCE OF AN APPROPRIATION LAW OR OTHER SPECIFIC STATUTORY AUTHORITY.


2. GOVT MONEY AND/OR PROPERTY SHALL ONLY BE USED FOR PUBLIC (NOT PRIVATE) PURPOSE.

FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS


3. TRUST FUND SHALL BE AVAILABLE AND MAYBE SPENT ONLY FOR THE SPECIFIC PURPOSE FOR WHICH THE TRUST WAS

CREATED.
BUT WHAT IS A TRUST FUND? .... IT IS REAL PROPERTY OR PERSONAL PROPERTY HELD IN TRUST FOR THE BENEFIT OF ANOTHER PERSON...

FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS


4. FISCAL RESPONSIBILITY BE SHARED BY ALL THOSE EXERCISING AUTHORITY OVER FINANCIAL AFFAIRS, TRANSACTIONS AND

OPERATIONS OF A GOVERNMENT AGENCY. 5. ALL DISBURSEMENTS OR DISPOSITION OF GOVT MONEY AND/OR PROPERTY SHALL BEAR THE APPROVAL OF THE PROPER OFFICIALS

FUNDAMENTAL PRINCIPLES OF FISCAL OPERATIONS


7. ALL LAWS AND REGULATIONS APPLICABLE TO FINANCIAL TRANSACTIONS SHALL BE FAITHFULLY

ADHERED TO; 8. GAAP AND PRACTICES OF ACCOUNTING, SOUND MANAGEMENT AND GOOD FISCAL ADMINISTRATION SHALL BE OBSERVED, PROVIDED THESE DO NOT CONTRAVENE EXISTING LAWS AND REGULATIONS.

KINDS OF BUDGET AS TO NATURE


ANNUAL BUDGET

COVERS ONE YEAR AND THE BASIS FOR AN ANNUAL APPROPRIATION SUPPLEMENTAL BUDGET ONE THAT ADJUSTS A PREVIOUS BUDGET DEEMED INAPPROPRIATE FOR THE PURPOSE IT WAS INTENDED; ALSO THE BASIS FOR A SUPPLEMENTAL APPROPRIATION

KINDS OF BUDGET AS TO NATURE


SPECIAL BUDGET

THIS IS SUBMITTED IN SPECIAL FORM ON ACCOUNT THAT ITEMIZATIONS ARE NOT ADEQUATELY PROVIDED IN THE APPROPRIATIONS ACT OR THAT AMOUNTS ARE NOT AT ALL INCLUDED IN THE BUDGET LAW.

KINDS OF BUDGET AS TO BASIS


PERFORMANCE BUDGET

EMPHASIZES THE PROGRAM OR SERVICES CONDUCTED AND BASED ON FUNCTIONS, ACTIVITIES AND PROJECTS, FOCUS ATTENTION UPON THE GENERAL CHARACTER AND NATURE OF WORK TO BE CARRIED OUT AND THE SERVICES TO BE RENDERED

KINDS OF BUDGET AS TO BASIS


LINE ITEM BUDGET

THE OBJECTS OF THIS BUDGET ARE EXPENDITURES SUCH AS SALARIES AND WAGES, TRAVELLING EXPENSES, FREIGHT, SUPPLIES AND MATERIALS AND EQUIPMENT

WHAT IS A BALANCED BUDGET?


THIS IS WHERE THE PROPOSED EXPENDITURES ARE EQUAL TO OR LESS THAN THE ESTIMATED REVENUE.
BUT PRESENTLY, (EVEN IN THE PAST), THE

REPUBLIC IS ALWAYS IN BUDGET DEFICIENCY.

Q.: It concerns with the implementation of the national budget by the different departments and release of allotments.
a. Budget preparation b. Budget authorization c. Budget execution d. Budget accountability

Q.: It concerns with the implementation of the national budget by the different departments and release of allotments.
a. Budget preparation b. Budget authorization c. Budget execution d. Budget accountability

BALANCED BUDGET BUT ALWAYS ENDING UP WITH BUDGET DEFICIENCY


HOW TO DO ABOUT IT?

IDENTIFY GOVERNMENT PRIORITIES .... (EXAMPLES?....) INCREASE REVENUE (EXAMPLES?... TAX) DECREASE EXPENDITURES.... SPEND THE DEFICIT.

THE GOVERNMENT BUDGET PROCESS


PREPARATION
LEGISLATIVE AUTHORIZATION EXECUTION AND OPERATION ACCOUNTABILITY

1.

BUDGET PREPARATION

COVERS THE FOLLOWING: ESTIMATING REVENUES DETERMINING PRIORITIES AND ACTIVITES TRANSLATING PRIORITIES AND ACTIVITIES IN TO EXPENDITURE LEVELS

WHO ESTIMATES/ PREPARES GOVERNMENT BUDGET?

THE

VARIOUS GOVERNMENT AGENCIES ESTIMATES THEIR RESPECTIVE BUDGETS: LGUs BUREAUS, AGENCIES GOCCs, ALL OTHER GOVT BODIES UNDER THE EXECUTIVE DEPARTMENT THEN SUBMITTED TO EXECUTIVE BRANCH PRESIDENT FOR REVIEW AND FINALIZATION

WHO ESTIMATES/ PREPARES GOVERNMENT BUDGET?


THE OFFICE OF THE PRESIDENT:

THE

TRANSMITS THE PROPOSED BUDGET TO THE LEGISLATIVE DEPARTMENT (CONGRESS) --AS THE BASIS FOR THE APPROVAL OF BUDGET LAW, KNOWN AS THE GENERAL APPROPRIATIONS ACT- OF YEAR XXXX

BUDGET PREPARATON ....


BEGINS WITH ...BUDGET CALL .... WHAT IS BUDGET CALL?

IT IS A DOCUMENT ISSUED BY THE DBM OUTLINING PRIORITY AREAS OF THE GOVT FOR THE APPLICABLE BUDGET YEAR

BUDGET CALL....
REMINDS AGENCIES OF BUDGET LIMITS APPROXIMATE RATE OF INCREASE IN GOVT CIELINGS, AS UP DATED IN THE LATEST

BUDGET MESSAGE OF THE PRESIDENT/ MALACANANG THEN DBM SUMMARIZES ALL BUDGET PROPOSALS, ANALYZES AND RECOMMENDS TO THE PRESIDENT FOR SIGNATURE AND EVENTUAL TRANSMITTAL TO CONGRESS

BUDGET PROCESS #2- LEGISLATIVE AUTHORIZATION


FROM MALACANANG, IT TAKES NO MORE THAN 30 DAYS RECKONED FROM OPENING OF CONGRESS (STATE OF THE NATION

ADDRESS); THE NATIONAL BUDGET PROPOSAL IS NOW TRANSMITTED TO THE HOUSE OF REPRESENTATIVE

LEGISLATIVE AUTHORIZATION
A SUMMARIZED BUDGET IS DONE IN LUMP SUM, FURTHER DETAILED INTO BUDGETARY FUNCTION BY ACTIVITIES OR

PROJECT. EACH AGENCY IDENTIFIES ITS MOST SIGNIFICANT ACTIVITY OR ACTIVITIES. HEADS OF AGENCIES ARE OCCASIONALLY INVITED DURING BUDGET COMMITTEE HEARINGS TO EXPLAIN

BUDGET PROCESS#3 EXECUTION AND OPERATION


THIS IS NOW THE TOOL OF MANAGEMENT (GOVT AGENCY) TO ENSURE THAT FUNDS ARE SPENT ONLY FOR SPECIFIC PURPOSE/S THE MONIES ARE INTENDED. INCLUDES: OPERATING AMT OF THE BUDGET TIME LINE W/N TO EXECUTE/ USE THE BUDGET MANPOWER, OTHER RESOURCES NEEDED, AND PESO AMOUNT REQUIRED TO FINISHTHE PROJECT.

BUDGET PROCESS#4 BUDGET ACCOUNTABILITY


THE 4TH & LAST PHASE OF BUDGET PROCESS .....: PERIODIC REPORTING OF PERFORMANCE UNDER APPROVED BUDGET; TOP MGT REVIEW OF ACTIVITIES & FISCAL POLICY IMPLEMENTATIONS; AND ACTIONS OF COMM ON AUDIT REGARDING FAITHFUL PERFORMANCE OF OFFIALS RE HANDLING OF RECEIPTS & DISB.

BUDGETARY ACCOUNTS ....


CONSIST OF: APPROPRIATION; ALLOTMENT; AND OBLIGATION

WHAT IS APPROPRIATION...
THIS IS AN AUTHORIZATION MADE UNDER LAW OR LEGISLATIVE ENACTMENT, DIRECTING THE PAYMENT OF GOODS AND

SERVICES OUT OF GOVERNMENT FUNDS UNDER SPECIFIC CONDITIONS OR FOR SPECIAL PURPOSE...

WHAT ABOUT ALLOTMENT....


THIS IS AN AUTHORIZATION ISSUED BY THE DBM TO A GOVERNMENT UNIT/ AGENCY WHICH WILL ALLOW SUCH UNIT

TO INCUR OBLIGATIONS FOR SPECIFIED AMOUNTS WITHIN THE LEGISLATIVE APPROPRIATION...

AND OBLIGATION? ....


THIS IS A COMMITTMENT BY A GOVERNMENT AGENCY ARISING FROM AN ACT OF THE HEAD OF SUCH UNIT WHICH

WILL BIND THE GOVERNMENT TO THE EVENTUAL PAYMENT OF A SUM OF MONEY.

Q.:WHICH DEPT PREPARES THE NATIONAL BUDGET, WHICH SERVES AS THE BASIS FOR THE GENERAL APPROPRIATIONS ACT?
a. Legislative department
b. Executive department c. Judiciary department

d. National agencies/ units

Q.:WHICH DEPT PREPARES THE NATIONAL BUDGET, WHICH SERVES AS THE THE BASIS FOR THE GENERAL APPROPRIATIONS ACT?
a. Legislative department
b. Executive department c. Judiciary department

d. National agencies/ units

BUDGETARY ACCOUNTS SYSTEM


Includes the following Agency Budget Matrix Recording and monitoring by agencies for amounts from DBM Releases of allotments from Central Office to Regional offices Allotment Release Orders Special allotment release orders

(BUDGET) REPORTING REQUIREMENTS


BUDGET EXECUTION DOCUMENTS (BEDs), and
BUDGETARY ACCOUNTABILITY REPORTS

(BARs)

BUDGETARY EXECUTION DOCS (BEDs)


Includes the following: Physical financial plan --- the over all plan of the agency for the entire year Monthly cash program --- this concerns the monthly cash disbursement required of an agency

BUDGETARY EXECUTION DOCS (BEDs)


Includes the following: Estimates of monthly income --- the estimated income of the concerned agency, by source List of not yet due & demandable obligations --- claims vs the govt for services rendered, goods delivered

BUDGETARY ACCOUNTABILITY REPORTS (BARs)


Quarterly reports: Quarterly Physical Report of Operations --- a report on actual accomplishment for a given quarter in terms of performance measure Quarterly Financial Report of Operations --- report on actual obligations/ expenditures incurred by program or by activities

BUDGETARY ACCOUNTABILITY REPORTS (BARs)


Quarterly reports: Quarterly Report of Actual Income --- report on agencys income or collections from all sources; and Statement of Allotments, Obligations and Balances --- this is a summary report of all allotments received and corresponding obligations incurred for the months in the reported quarter

FAILURE TO SUBMIT BEDs AND BARs


Done in call up letters: 1st call up letter signed by the DBM director 2nd call up letter signed by the assistant or undersecretary of the DBM; 3rd call up letter signed by the DBM secretary; Non compliance - to be reported to Malacanang/ OP

End.

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