Name: Mohammad Rafsanjanie C.

Abdulcader

Subject/section: BPA 122 (Government Budgeting)

What is budget cycle?

The 1987 Philippine Constitution outlines the government’s framework for the budget process.
As elaborated by the Department of Budget and Management (DBM), the budget process involves
four distinct phases:
1. Budget preparation
2. Budget authorization
3. Budget execution
4. Budget accountability
While distinctly separate, these processes overlap in the implementation during a budget year.
Budget preparation for the next budget year proceeds while government agencies are executing the
budget for the current year and at the same time engaged in budget accountability and review of
the past year’s budget.
Budget preparation
The Philippine Constitution requires the submission of the President’s budget 30 days from the
opening of each regular session of Congress.
The first steps of the annual budget preparation begins with the determination of the overall
economic targets, expenditure levels, revenue projection, and the financing plan by the
Development Budget Coordinating Committee (DBCC).
Following this, the DBM will issue a Budget Call, which defines the budget framework; sets economic
and fiscal targets; prescribes the priority thrusts and budget levels; and spells out the guidelines and
procedures, technical instructions, and the timetable for budget preparation.
The various government agencies will then prepare their respective detailed budget estimates that
rank programs, projects, and activities using the capital budgeting approach and submit these to the
DBM. Budget hearings are then conducted, where agencies justify their proposed budgets before
the DBM technical panels.
After the submission of proposed expenditure programs by the respective agencies, and the
subsequent approval by the DBCC, the proposed budget is reviewed and approved by the President
and the Cabinet. Finally, the President submits the proposed budget to Congress.
What are the requirements in preparing a budget in the government agency?

Priorities plans and program Government budgeting is important because it enables the government
to plan and manage its financial resources to support the implementation of various programs and
projects that best promote the development of the country. Through the budget, the government
can prioritize and put into action its plans, programs and policies within the constraints of its
financial capability.

Budget cycle Budgeting for the national government involves four (4) distinct phases: budget
preparation, budget legislation or authorization, budget execution or implementation and budget
accountability. While distinctly separate, these processes overlap in implementation during a budget
year. Budget preparation for the next budget year proceeds while government agencies are
executing the budget for the current year. At the same time, the state is engaged in budget
accountability as it reviews the past year's budget.

Importance of Government budgeting?

Government budgeting is the allocation of public funds to attain the economic and social goals of
the country. It also entails the management of government expenditures to create the most impact
from the production and delivery of goods and services.

Why does the government prepare the budget every year?

Trial balances of agencies, which are submitted to DBM and COA on a quarterly and annual basis,
report how agencies use up their allotments and cash allocations.

Why does the government prepare a new budget every year? Ensures continuous evaluation and
review the preparation of the government's budget every year is in accordance with the
Constitution. The Charter requires the President to submit a budget of expenditures and sources of
financing within 30 days from the opening of every regular session of Congress. The yearly
preparation of the budget also follows the principle that all government spending be justified anew
each year. This ensures that government continuously evaluates and reviews the allocation of
resources for cost efficiency and effectiveness.
What are the laws governs to using the government funds?

In accordance with the requirements of the Constitution, the President submits his/her proposed
annual budget in the form of a Budget of Expenditures and Sources of Financing (BESF) supported by
details of proposed expenditures in the form of a National Expenditure Program (NEP) and the
President's Budget Message which summarizes the budget policy thrusts and priorities for the year

In Congress, the proposed budget goes first to the House of Representatives, which assigns the task
of initial budget review to its Appropriations Committee. The Appropriations Committee together
with the other House Subcommittees conduct hearings on the budgets of departments/agencies
and scrutinizes their respective programs/projects. Consequently, the amended budget proposal is
presented to the House body as the General Appropriations Bill. While budget hearings are on-going
in the House of Representatives, the Senate Finance Committee, through its different
subcommittees also starts to conduct its own review and scrutiny of the proposed budget and
proposes amendments to the House Budget Bill to the Senate body for approval. To thresh out
differences and arrive at a common version of the General Appropriations Bill, the House and the
Senate creates a Bicameral Conference Committee that finalizes the General Appropriations Bill.
Once a common budget bill has been approved by both Houses, it is submitted to the President for
signing into law, at which time it becomes the General Appropriations Act. 10. What is the General
Appropriations Act? The General Appropriations Act (GAA) is the legislative authorization that
contains the new appropriations in terms of specific amounts for salaries, wages and other
personnel benefits; maintenance and other operating expenses; and capital outlays authorized to be
spent for the implementation of various programs/projects and activities of all departments,
bureaus and offices of the government for a given year
What is fiscal policy and the importance of fiscal policy?

Fiscal policy is the use of government spending and taxation to influence the economy.
Governments typically use fiscal policy to promote strong and sustainable growth and reduce
poverty. The role and objectives of fiscal policy gained prominence during the recent global
economic crisis, when governments stepped in to support financial systems, jump-start growth, and
mitigate the impact of the crisis on vulnerable groups.

When policymakers seek to influence the economy, they have two main tools at their disposal—
monetary policy and fiscal policy. Central banks indirectly target activity by influencing the money
supply through adjustments to interest rates, bank reserve requirements, and the purchase and sale
of government securities and foreign exchange. Governments influence the economy by changing
the level and types of taxes, the extent and composition of spending, and the degree and form of
borrowing.

Governments directly and indirectly influence the way resources are used in the economy. A basic
equation of national income accounting that measures the output of an economy—or gross
domestic product (GDP)