Scribd Logo
Upload

Welcome to Scribd!

  • 36 views

    C2 The Budget Process

    Uploaded by

    Cyril Grace Dedumo
    The budget process involves several steps: 1. Budget preparation begins with agencies defending their proposed budgets to the Department of Budget and Management, who then submits the president's budget to Congress. 2. Congress deliberates on the budget through legislative hearings and committees before passing a General Appropriations Act for the president to enact. 3. Once enacted, the budget is executed through the release of funds to agencies in accordance with the appropriations law. 4. The government monitors budget execution and accountability to ensure actual spending aligns with planned targets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    C2 The Budget Process

    Uploaded by

    Cyril Grace Dedumo
    36 views4 pages
    The budget process involves several steps: 1. Budget preparation begins with agencies defending their proposed budgets to the Department of Budget and Management, who then submits the president's budget to Congress. 2. Congress deliberates on the budget through legislative hearings and committees before passing a General Appropriations Act for the president to enact. 3. Once enacted, the budget is executed through the release of funds to agencies in accordance with the appropriations law. 4. The government monitors budget execution and accountability to ensure actual spending aligns with planned targets.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The budget process involves several steps: 1. Budget preparation begins with agencies defending their proposed budgets to the Department of Budget and Management, who then submits the president's budget to Congress. 2. Congress deliberates on the budget through legislative hearings and committees before passing a General Appropriations Act for the president to enact. 3. Once enacted, the budget is executed through the release of funds to agencies in accordance with the appropriations law. 4. The government monitors budget execution and accountability to ensure actual spending aligns with planned targets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views4 pages

    C2 The Budget Process

    Uploaded by

    Cyril Grace Dedumo
    The budget process involves several steps: 1. Budget preparation begins with agencies defending their proposed budgets to the Department of Budget and Management, who then submits the president's budget to Congress. 2. Congress deliberates on the budget through legislative hearings and committees before passing a General Appropriations Act for the president to enact. 3. Once enacted, the budget is executed through the release of funds to agencies in accordance with the appropriations law. 4. The government monitors budget execution and accountability to ensure actual spending aligns with planned targets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    C2: The Budget Process

    Saturday, February 4, 2023 10:17 AM

    Government accounting:
    - Also provides budget information
    - Concerned with providing information that is useful in assessing the compliance of the government entities'
    expenditures with the approved budget.

    National budget - Is the government's estimate of the sources and used of government funds within a fiscal year. This
    is the basis for expenditures and is the government's key instrument for promoting its socio-
    economic objectives.

    Budget cycle \/

    • Budget - Uses a BOTTOM-UP budgeting approach and a ZERO-BASED BUDGETING


    preparation 1. Call from the DBM -->
    2. government agencies defends their proposed budget to DBM (budget hearing)-->
    3. DBM submits the proposed budget to the PRESIDENT (this then becomes the president's
    budget) -->
    4. (presentation to the office of the president) president and cabinet members then REVIEWS the
    budget -->
    5. Approval of president
    6. Finalization of budget by DBM
    7. Submission of the PRESIDENT to the CABINET within 30 days from the opening of every regular
    session.

    This is the part where the budget will be prepared by

    PRESIDENT'S BUDGET encompass the ff:


    a. President's budget message
    b. National Expenditure Program (NEP) - contains the details of all the government entities'
    proposed expenditures in the coming year.
    c. Budget of Expenditures and Sources of Financing (BESF) - contains the estimated
    expenditures accompanied by estimates of expected sources of financing.
    d. Other documents - provide further explanation of selected items in the NEP

    • Budget House deliberations --> Senate deliberations --> Bicameral deliberations --> President's enactment
    Legislation There is a due process that needs to be followed before the budget can be enacted.
    1. The president will submit the PRESIDENT'S BUDGET to the house representative to conduct
    hearings that will scrutinize budget, aka house deliberations. They will then have the General
    Appropriation Bill.
    2. After or even during the house deliberations the senate would then conduct hearings on the
    GAB
    3. Bicameral Conference Committee would then harmonize any conflicts of the decisions of the
    house and senate deliberations that will then be called GAB ('Bicam' version).
    4. The GAB would then be resubmitted to both houses for ratification
    5. Then the president would then receive the GAB for enactment, which will be called General
    Appropriation Act (GAA).

    Note: If there are no new budget enacted before the start of the fiscal year the past year's GAA will
    be used until there are new GAA will be proposed. (Art. VI, Sec 25(7), Philippine Constitution)

    Government and NPO Accounting Page 1


    be used until there are new GAA will be proposed. (Art. VI, Sec 25(7), Philippine Constitution)

    Approved budget - This is the expenditure authority derived from appropriation laws, government ordinances, and
    other decisions related to the anticipated revenue or receipts for the budgetary period.
    (30-31) - This consists of the following:
    • New general appropriations - annual authorizations for incurring obligations during a
    specified budget year, as listed in the GAA
    • Continuing appropriations - supports obligations for a specific purpose or project (multi-year
    project)
    • Supplemental appropriations - additional appropriation to add the original appropriation
    which proved by law to be insufficient.
    • Automatic appropriations - [funds] not required for the periodic action [deliberation] by the
    congress
    • Unprogrammed appropriations - standby appropriation availed only when:
    ○ Revenue collection > revenue TARGET - in the BUDGET OF EXPENDITURES AND
    SOURCES OF FINANCING -- BESF -- given by the president to the congress
    ○ New revenues are collected from sources not originally considered in the BESF
    ○ New approved loans
    • Retained income or funds - collections which are authorized by law to be used by agencies
    concerned for their operation or specific purposes
    • Revolving funds - receipts derived from business-type activities of departments/agencies;
    SELF-LIQUIDATING fund, all obligation shall be charged with the fund
    • Trust receipts - receipts by any government agency acting as trustee, agent or administrator
    for the fulfillment of some obligations or conditions.
    - Appropriations: the authorization made by a legislative board to allocate funds for purposes
    specified by the legislative or similar authority.
    - Special appropriation bill: shall specify the purpose of which it is intended, and shall be supported
    by funds actually available.
    - No law shall be passed authorizing any transfer of appropriation; with the exception of the
    PRESIDENT, SENATE PRESIDENT, HOUSE OF REPRESENTATIVES' SPEAKER, CHIEF JUSTICE of
    SC, and the CONSTITUTIONAL COMMISSIONS may augment any item in the general
    appropriations law for their RESPECTIVE OFFICES

    • Budget Execution - This is where the government funds are spent


    1. Release of guidelines and Budgets Execution Documents (BEDs) [this summarizes an agency's
    fiscal year plans and performance targets. Its inclusions are as follows:
    ○ Physical and financial plan
    ○ Monthly cash program
    ○ Estimate of monthly income
    ○ List of obligations that are not yet due and demandable
    - Major recipients of the budget:
    ▪ National government agencies --NGA
    ▪ Local government units -- LGU
    ▪ Government owned and controlled corporations --GOCC
    2. Allotment - authorization to agencies to incur obligations
    • GAARD --> General Appropriation Act Release Document: comprehensive release of
    budgetary items appropriated in the GAA
    • SARO --> Special Allotment Release Order: Releases of special purpose funds - for later
    release items
    • GARO --> General Allotment Release Order comprehensive authority issued to all
    national government agencies to incur obligations not exceeding an authorized amount
    during a specifies period for the purpose indicated therein.
    3. Incurrence of obligations - amount contracted by an authorized officer for which the

    Government and NPO Accounting Page 2


    3. Incurrence of obligations - amount contracted by an authorized officer for which the
    government is held liable
    4. Disbursement authority - actual amount paid out of the budgeted amount.
    a. Notice of Cash Allocation (NCA) - specifies the maximum amount of cash that can be
    withdrawn from a government servicing bank [DBM > central, regional, provincial
    offices]
    b. Notice of Transfer of Allocation - issued by the CENTRAL OFFICE > regional, operating
    units
    c. Non-Cash Availment Authority - covers the liquidation of their actual obligations
    incurred against available allotments for availment of proceeds from loan/ grants
    [DBM > agencies]
    d. Cash Disbursement Ceiling - authority issued by DBM to agencies with foreign
    operations.

    • Budget - This is where the budget is being monitored as it is being executed to determine the conformance
    Accountability of the actual results with planned targets.
    1. Appropriation = budgeted amount to be used → RAPAL
    2. Allotment = fund received → RAPAL
    3. Unreleased appropriation = appropriation - allotment → RAPAL
    4. Obligation incurred → RAOD
    5. Unobligated allotment = allotment - obligation incurred → RAOD
    6. Disbursement → RAOD
    7. Unpaid obligation = obligations incurred - disbursement
    8. Unused NCA = Notice of cash allocation - disbursementsf

    Responsibility - System of providing cost of revenue information over which a manager has direct control of.
    Accounting - This identifies the:
    • Responsibility center -
    • Controllable costs
    • Non-controllable costs

    Government and NPO Accounting Page 3


    Government and NPO Accounting Page 4

    You might also like