Budget Preparation

Question 1

in the Philippines uses a bottom-up approach.

Answer 1

Budget Preparation

Question 2

starting from the lowest to the highest levels of the government.

Answer 2

Budget Preparation

Question 3

the current year’s budget is formulated based on the previous year’s budget, which is just adjusted for any variances experienced in the past.

Answer 3

Incremental Budgeting

Question 4

the current year’s budget is formulated without regard
to the previous year’s budget. Government agencies are required to justify their current year’s proposed programs and expenditures, irrespective whether these are new or carried over from the previous year.

Answer 4

Zero-Based Budegting

Question 5

is an issuance of the DBM to all government agencies marking the start of budget preparation for a fiscal year.

contains, among other things, the next fiscal year’s targets, the agency’s budget ceiling, and other guidelines in the completion and submission of agency budget proposals.

Answer 5

1. Budget Call

Question 6

Agencies engage citizens as they prepare their proposed budgets, through the Budget Partnership Agreements with civil society organizations (CSOs), Bottom-Up Budgeting (BUB), and other participatory budgeting mechanisms.

Answer 6

2. Citizen Engagement

Question 7

Agencies consult with Regional Development Councils (RDCs) to make sure that their respective budget proposals are aligned with the regions’ development needs and priorities.

Answer 7

3. RDC Consultation

Question 8

CSO

Answer 8

Civil Society Organisations

Question 9

BUB - focus on rural development programs and the conditional cash transfer program of the poorest municipalities.

Answer 9

Bottom-up Budgeting

Question 10

RDC

Answer 10

Regional Development Councils

Question 11

Lead and contributing agencies for each program priority of the government (for example, tourism) meet and synergize their proposed budgets to meet target outcomes.

Answer 11

4. Program Convergence

Question 12

Agencies prepare the forward estimates (Fes) or current costs of their ongoing programs and projects and submit these for the “Tier 1” stage of Two-Tier Budgeting Approach (2TBA).

Answer 12

5. Angencies Tier 1Proposal (Ongoing Expenditures)

Question 13

“Tier 1” stage of Two-Tier Budgeting Approach

Answer 13

2TBA

Question 14

Agencies prepare the forward estimates (Fes) or current costs of their ongoing programs and projects and submit these for the “Tier 1” stage of 2TBA.

Answer 14

6. Tier 1 Deliberations

Question 15

This document spells out the economic forecasts and fiscal targets for the budget year, the total cost of ongoing spending under Tier 1, and identifies the fiscal space: the available resources for new programs and projects or the expansion of existing ones. The Framework defines priority sectors and locations, and other guidelines that agencies must comply with in preparing their Tier 2 budget proposals.

Answer 15

7. Budget Priorities Framework

Question 16

After undertaking further consultations with CSOs, RDCs, and other agencies, agencies prepare their proposals for new programs and projects or the expansion of existing ones. Agencies submit both their proposed Tier 1 and Tier 2 budget through the Online Submission of Budget Documents System

Answer 16

8. Agency Tier 2 Proposal (New/Expanding Standing)

Question 17

Like in Tier 1, the DBM conducts TBH and ERB to review the Tier 2 proposals of agencies.
Other government bodies are also involved in reviewing such proposals: the NEDA Investment Coordination Committee (ICC) for capital projects costing P1 billion or more and for PPP-related proposals; the (Development Budget Coordination Committee) DBCC Subcommittee on Program & Project Appraisal (SC-PPA) for new or expanded programs or projects costing P300 million to less than P1 billion; the NEDA Infrastructure Committee (InfraComm) for all infrastructure projects in line with the Three-Year Rolling Infrastructure Program (TRIP); the GCG and DoF for the proposals of GOCCs; and the MITHI committee for ICT projects.

Answer 17

9. Tier 2 Dileberation

Question 18

Investment Coordination Committee

Answer 18

ICC

Question 19

Development Budget Coordination Committee

Answer 19

DBCC

Question 20

Subcommittee on Program & Project Appraisal

Answer 20

SC-PPA

Question 21

Infrastructure Committee

Answer 21

InfraComm

Question 22

Three-year Rolling Infrastructure Program

Answer 22

TRIP

Question 23

The DBM, DoF, and NEDA, with the BSP (as the DBCC) present the proposed Budget before the President and the Cabinet for discussion and approval.

Answer 23

10. Presentation to President and Cabinet

Question 24

The DBM validates the approved budgets and consolidates these into the Budget of Expenditures and Sources of Financing (BESF) and other budget documents.

Answer 24

11. Confirmation and Finalization

Question 25

Budget of Expenditures and Sources of Financing

Answer 25

BESF

Question 26

contains the following documents which are intended to assist the Congress in their review and deliberation of the proposed national budget:

a. President’s Budget Message National
b. Expenditure Program (NEP) Budget
c. Expenditures and Sources of Financing
d. Other documents aimed to provide further explanation of selected items in the NEP

Answer 26

12. The President Budget

Question 27

National Expenditure Program

Answer 27

NEP