Budget Preparation Flashcards
in the Philippines uses a bottom-up approach.
Budget Preparation
starting from the lowest to the highest levels of the government.
Budget Preparation
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.
Incremental Budgeting
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.
Zero-Based Budegting
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.
- Budget Call
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.
- Citizen Engagement
Agencies consult with Regional Development Councils (RDCs) to make sure that their respective budget proposals are aligned with the regions’ development needs and priorities.
- RDC Consultation
CSO
Civil Society Organisations
BUB - focus on rural development programs and the conditional cash transfer program of the poorest municipalities.
Bottom-up Budgeting
RDC
Regional Development Councils
Lead and contributing agencies for each program priority of the government (for example, tourism) meet and synergize their proposed budgets to meet target outcomes.
- Program Convergence
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).
- Angencies Tier 1Proposal (Ongoing Expenditures)
“Tier 1” stage of Two-Tier Budgeting Approach
2TBA
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.
- Tier 1 Deliberations
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.
- Budget Priorities Framework
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
- Agency Tier 2 Proposal (New/Expanding Standing)
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.
- Tier 2 Dileberation
Investment Coordination Committee
ICC
Development Budget Coordination Committee
DBCC
Subcommittee on Program & Project Appraisal
SC-PPA
Infrastructure Committee
InfraComm
Three-year Rolling Infrastructure Program
TRIP
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.
- Presentation to President and Cabinet
The DBM validates the approved budgets and consolidates these into the Budget of Expenditures and Sources of Financing (BESF) and other budget documents.
- Confirmation and Finalization
Budget of Expenditures and Sources of Financing
BESF
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
- The President Budget
National Expenditure Program
NEP
