Government budgeting is the critical process of allocating revenues and borrowed funds
to achieve the country's economic and social goals. It also entails managing government
expenditures in such a way that the most economic impact is generated from the production
and delivery of goods and services while maintaining a healthy fiscal position.
The four (4) distinct phases of national government budgeting are: Budget preparation,
budget legislation or authorization, budget execution or implementation, and budget
accountability. Budget preparation starts from the agency heads, they will project revenues
generated and possible borrowings that may be tapped. Once approved budget call will be
held by the Department of Budget and Management (DBM) where agencies need to prepare
their budget estimates. DBM then consolidates budget proposals and submits them to the
cabinet discussed with the President. Once approved by the President himself it shall be
submitted to the Congress that must be done no more than 30 days after the opening of its
regular session. The budget preparation phase is guided by a budget calendar in order to
meet the Constitutional requirement. Budget Legislation on the other hand is the process of
turning the proposed budget bill into law. The expenditure project is implemented during the
budget execution stage. Allotments are made, which are deducted from the regular agency
budgets. It is also at this stage that agencies may submit requests for SPF allocation. The
budget process concludes with the accountability phase. This is the time for agencies to
report on their actual physical and financial performance.
As per the Constitution, the President submits his/her presented annual budget in the
form of a Budget of Expenditure and Sources of Financing (BESF). In which is 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. The proposed budget is first sent to the House of Representatives, which
delegated the task of initial budget review to its Appropriations Committee. The Appropriation
Committee, along with the other House Subcommittees, hold hearings on department/agency
budgets and scrutinize their respective programs/projects. As a result, the amended budget
proposal is introduced to the House as the General Appropriations Bill. While the House of
Representatives is holding budget hearings, the Senate Finance Committee, through its
various subcommittees, begins its own review and scrutiny of the proposed budget and
proposes amendments to the House Budget Bill to the Senate body for approval. The House
and Senate forms a Bicameral Conference Committee that finalizes the General Appropriations
Bill to iron out differences and reach a consensus on the General Appropriations Bill. After
both Houses have approved a common budget bill, it is sent to the President for his signature,
at which point it becomes the General Appropriations Act.
General Appropriations Act (GAA) is the legislative authorization that contains new
spending bills in the form of specific amounts for salaries, wages, and other personnel
benefits; maintenance and other operating expenses; and capital outlays authorized to be
spent for the application of integrated applications and activities of all departments, bureaus,
and offices of the government for the given year. General Appropriations Act (GAA) is one of
the most important legislations that Congress annually passes. It defines the annual
expenditure program of the national government and all of its instrumentalities. The
expenditure program includes all programs and projects that are supposed to be supposed to
be funded out of government funds of the year.
The process of the government budgeting is very long and complicated in some ways. As
mentioned the government needs to be transparent to the citizens of the country because the
money they are spending is from the people. Thus, government budgeting is very important
because it allows the government to plan and manage its financial resources in order to
support the integration of effective programs and projects that best promote the country's
development. The budget allows the government to prioritize and implement its plans,
programs, and policies within the constraints of its financial capability as dictated by economic
conditions. It was good knowing that this year the citizens have the voice to question where
the funds would go and how the government is spending them. I am hoping for better results
and actually is very happy with the transparency they are giving us.
Sources:
https://economictimes.indiatimes.com/budget-faqs/why-is-it-important-for-thegovernment-to-have-a-budget/articleshow/67450000.cms?from=mdr
https://www.dbm.gov.ph/wp-content/uploads/2012/03/PGB-B2.pdf