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Budget Cycle (As Discussed by The SC in Araullo V Aquino) : Congress

The budget cycle consists of four phases: budget preparation, budget legislation, budget execution, and budget accountability. During budget preparation, government agencies submit their budget proposals to the Department of Budget and Management (DBM) which consolidates the proposals into expenditure and revenue documents. These documents are presented to the President and Congress. Congress then deliberates on the budget through appropriations and finance committees before passing the General Appropriations Act. For budget execution, DBM releases allotments and disbursement authorities to agencies which then implement programs and projects. Finally, agencies are held accountable through performance reviews and audits to ensure targets are met and funds are properly used.

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60 views1 page

Budget Cycle (As Discussed by The SC in Araullo V Aquino) : Congress

The budget cycle consists of four phases: budget preparation, budget legislation, budget execution, and budget accountability. During budget preparation, government agencies submit their budget proposals to the Department of Budget and Management (DBM) which consolidates the proposals into expenditure and revenue documents. These documents are presented to the President and Congress. Congress then deliberates on the budget through appropriations and finance committees before passing the General Appropriations Act. For budget execution, DBM releases allotments and disbursement authorities to agencies which then implement programs and projects. Finally, agencies are held accountable through performance reviews and audits to ensure targets are met and funds are properly used.

Uploaded by

Joshua Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Budget Cycle (as discussed by the SC in Araullo v Aquino)

 Budget Preparation
1. Budget call issued by DBM
o budget call – parameters, policy and guidelines set by the DBCC to guide department agencies
o 2 kinds: national and corporate

2. Department agencies submit agency budget proposal to DBM


3. Budget hearing
4. DBM consolidates agency budgets to:
a.) National Expenditure Program (NEP) – details of spending for each agency by program, activity, or project
(PAP)
b.) Budget of Expenditures and Sources of Funding (BESF) – contains the expenditure and revenues for the
fiscal year and 2 previous years
o expenditures: capital = more than 1 year; current operating expenditure = less than 1 year, includes personal
services and maintenance and other operating expenses (MOOE)
o revenues: tax, capital gains, extraordinary income, public borrowings
5. NEP and BESF presented to the President and Cabinet
6. Once approved, DBM prepares budget documents (NEP, BESF, Presidential Message) and submits to
Congress

 Budget Legislation
1. Presdiential Budget assigned to HoR’s Appropriations Committee
o Budget hearings, examinations of PAPs and NEP
2. HoR drafts the General Appropriations Bill (GAB)
3. If approved on third reading, transmit to Senate
4. Senate conducts its own hearings through the Senate Finance Committee
5. If there are conflicting versions of the GAB, refer to BCC
6. Harmonized versions submit to President for approval or veto = General Appropriations Act

Note: if Congress fails to pass GAB by the end of the fiscal year, GAA for the previous fiscal year deemed
reenacted

 Budget Execution
1. Agencies submit Budget Execution Documents (BED) and outlines their plans and performance targets
2. DBM prepares an Allotment Release Programs and Cash Release Program
o Allotment Release Program – limit for allotments in general
o Cash Release Program – monthly, quarterly and annual disbursements
3. DBM release allotments, either in the form of Agency Budget Matrix (by agency) or SARO (individual)
o Allotments authorizes agency to enter into obligations. It is lesser in scope than appropriations
4. Agencies then incur obligations to implement their PAP
5. DBM issues disbursement authority to pay for obligations
o Notice of Cash Allocation (NCA)
o Non-Cash Availment Authority (NCAA)
o Cash Disbursement Ceilings (CDC) – for overseas operation

 Budget Accountability
1. performance targets and outcome
2. budget accountability reports
3. agency performance review
4. audit by COA

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