The government budget is a plan that estimates revenues and expenditures for government programs and projects for the fiscal year. It is prepared by the executive branch and must be approved by the legislative branch. The budget allocates funds for operations, salaries, capital projects, and debt repayment from sources like taxes and borrowings. It supports the national development plan through a multi-step process of preparation, authorization, implementation, and accountability.
2. A government budget is a plan for financing
the government activities of a fiscal year prepared
and submitted by responsible executive to a
representative body whose approval and
authorization are necessary before the plan can be
executed. It is more than mere estimate or
statement of receipts and expenditures; it is a
define proposal to be approved or rejected.
3. 1.Action is based on study.
2. Cooperation is secured in the entire organization.
3. Policies are established.
4. Programs of activities are related to expected or
available resources and economic conditions.
5. Balanced Programs are developed.
6. Coordinated effort is attained.
7. Operations are controlled.
8. Weaknesses in the government are revealed.
9. Wastes are prevented.
4. I. As to Nature
A. Annual Budget- a budget which covers a period of one
year. It is the basis of an Annual appropriation.
B. Supplemental Budget- a budget which purports to
supplemental or adjust a previous budget which is
deemed to inadequate for the purpose for which is
intended.
C. Special Budget- a budget of special in nature and submitted in a
special forms on account of the fact that itemizations are not
adequately provided in the Appropriation Act or that amounts are
not included in the Appropriation Act.
5. II. As to Basis
A. Performance Budget- a budget emphasizing the programs
or services conducted and based on functions, activities and
projects which focus attention upon the general character and
nature of work to be done upon services to be rendered rather than
the things to be acquired such as personal services, supplies and
equipment.
B. Line Item Budget- a budget the basis of which are the objects
and expenditures such as salaries and wages, travelling expenses,
freight, supplies, materials, equipment etc.
6. III. As to Approach and Technique
A. Zero-Based Budgeting- a process which requires
systematic consideration of all programs, projects and
activities with the use of the defined ranking
procedures.
7. IV. Other Forms of Budget
A. Regional Budgeting- is a budget prepared consistent
with the regional organization of the National
Government, wherein the DBM identifies by
region the expenditures of government agencies
and releases of funds also on a regional basis.
B. Long-Term-Budget- is a budget prepared for four or
five year period or longer; longer range estimate
revenue and expenditures requirements.
8. C. Key Budgetary Inclusions- refer to financial
commitments of agencies pertaining to budget
year. KBIs are maintained for the purpose of
1. controlling major financial
commitments so that funds are not
misappropriated or to prevent juggling of funds.
2. to disclose the funds and have clear
picture of the expenditures; and . To track down
mandatory obligations and insure funding of
priority projects
9.
10. 1. The formulation of the budget that supports the
national development plan and reflects the
objectives and strategies of the plan.
2. The preparation of budget within the context of
the total resources of government, including
revenues and receipts, expenditures and
borrowings of national and local government
units, including government and controlled
corporation.
3. The preparation of the annual budget as an
integral part of a long-term plan and long-term
budget program
11. 4. The specification of multi-year requirements in each
state of the budget process.
5. The preparation of the budget at the regional level,
consolidation and review at the department and central
levels, taking into consideration the goals, plans and
requirements of the regional offices in the interest of
full government response to local thinking and
initiative.
6. The implementation and timing of major development
projects which may affect the infrastructure program,
debt ceilings, domestic credit, balance of international
payments and determination of expenditure levels to
insure the observance of established fiscal, monetary,
international payment and other constraints.
12. 7. Analysis of budget estimates on a zero-base approach
rather than on percentage or incremental approach.
8. Basis for legislative discussion of the budget, limiting
the time allotted for debate on the budget by the
legislative body, thereby ensuing that the budget is
approved before the start of the fiscal year.
9. Adoption of a management information system for
effective performance monitoring and financial
evaluation and the development of standard costs for
units of work measurement, in order to efeectively
evaluate agency programs.
13. It is the government’s estimate of its income and
expenditures. It is what the government plans to
spend it for programs and projects and where the
money will come from.
Two major sources of money for our National Budget:
1. Revenues
2. Borrowings
14. Four Process of Budgeting
• Budget Preparation- this place covers
the estimation of government revenues,
the determination of budgetary
priorities and activities and the
translation of these priorities and
activities into budgetary estimates.
15. • 2.Budget Authorization- this phase
includes the legislative body reviews
the budget proposals of the President
and formulates an appropriation act
in accordance with the process
specified in the Constitution.
16. 3. Budget Implementation/ Execution-
This phase covers the various operational
aspects of budgeting. This is the point
where the agency can make use of the
approved appropriation.
17. • Budget Accountability- this phase of
the budget process is concerned with
tracking and monitoring of actual
expenditures, revenues, assets and
liabilities of government agencies. It
is particularly involved in the
evaluation of expenditures and
performance.
18. It is allocated for the implementation
of various programs and projects, the
operation of government offices,
payment of salaries of government
employees and payment of public debts.
•
19. • Expenditures by expense class show how
much is much is provided:
• 1. Current Operating Expenditures-
appropriations for the purchase of goods
and services for conduct of normal
government operations within a budget
year; such as the salaries, maintenance
and operating expenses, interest payment
etc.
20. • 2. Capital Outlays- appropriations of
goods and services the benefits of which
extent beyond the budget year and which
add th the assests of the government
including investments in the capital stock
of government oend or controlled
corporations.
21. • 3. Net Lending- net advances by the
national government for the servicing
of government guaranteed corporate
debt and loans outlays by the national
government corporations
22. • 4. Debt amortization- contribution to
the sinking fund which is utilized for
principal repayments of our loans