Central Luzon State University
College of Business Administration and Accountancy
Science City of Muñoz, Nueva Ecija
THE APPROVED BUDGETS
(Discussion & Example)
Submitted by:
Bautista, Michael Joshua
Del Rosario, Francis
Garin, Regine
Lucas, Justine Rose
Madrid, Danielle
Maducdoc, Kyla Joy A.
Magtalas, Charmaine
Roduta, Alicia
Santos, Coleen
GROUP 4
Submitted to:
MRS. ERDILYN L. CARIÑO
ACCTG 3120 Professor
NEW GENERAL APPROPRIATIONS
Based on the textbook, these are annual authorizations for incurring obligations during a specified
budget year, as listed in the GAA.
General appropriations refer to the process by which a government allocates funds for various
programs, services, and expenditures. It involves formulating, approving, and implementing a
budget that outlines the financial resources allocated to different government agencies,
departments, and projects.
The general appropriation process typically begins with the formulation of a budget proposal by
the executive branch of the government. This proposal outlines the government's financial plan for
the upcoming fiscal year, including revenue projections and expenditure priorities. The budget
proposal is then reviewed and approved by the legislature or parliament, which may make changes
or amendments before finalizing the budget.
During the process, funds are allocated to different areas of government expenditure, such as
education, healthcare, defense, infrastructure, social welfare, and other sectors. The specific
allocation of funds depends on the government's priorities, policy objectives, and the needs of the
country. It also involves assessing and prioritizing competing demands for limited resources.
Government officials consider various factors, including economic conditions, public needs,
political considerations, and fiscal constraints when determining the allocation of funds. They may
also consult with experts, stakeholders, and the public to gather input and ensure transparency in
the decision-making process.
Once the budget is approved, the allocated funds are then distributed to the relevant government
agencies and programs. These entities are responsible for managing and spending the funds in
accordance with the budget guidelines and regulations.
Overall, the general appropriation process plays a crucial role in determining how public funds are
allocated and used to meet the needs of the government and its citizens. It helps ensure that
resources are distributed in a strategic and responsible manner to achieve the government's goals
and serve the public interest.
National Wages and Productivity Commission for Regular Agency Fund
All Heads of Departments/Agencies/State Universities and Colleges (SUCs) and Other Offices
of the National Government, including Commissions/Offices under the Constitutional Fiscal
Autonomy Group (CFAG), Government Entities Receiving Budgetary Support (Governmentowned or -controlled Corporations [GOCCs] and Local Government Units [LGUs]); Budget
Officers; Heads of Accounting Units; and All Others Concerned should provide policies,
procedures, rules and regulations on the release, utilization of funds, and monitoring of items
authorized under Republic Act No. 11465, the FY 2020 General Appropriations Act (GAA), in
accordance with the General and Specific Provisions, thereof.
Department of Labor and Employment
National Wages and Productivity Commission
Regular Agency Fund - General Fund - New General Appropriations - Specific Budgets
of National Government Agencies
CERTIFICATION
This is to certifiy that the amount of Php 8,528,000.00 is available and not yet obligated as of
May 31, 2021, considering that the original purposes (as enumerated below) have already
been undertaken in the early part of FY 2021
FROM - (Allotment Class, e.g., MOOE)
P/A/P
OBJECT OF EXPENDITURE
DESCRIPTION
COD
E
100000100001000 General Management and
Supervision
310100100001000
Internet Subscription
Semi-Expendable - ICT
Development and
ICT Software Subscription
Implementation of Policies, Internet Subscription
Plans and Projects Related to
Incomes, Productivity
Improvement and Gain
Sharing
Total
AMOUNT
(in pesos)
384,000.00
5,044,000.00
1,600,000.00
1,500,000.00
8,528,000.00
This is to certify further that the said available allotments shall be used to cover the
following purposes of modification:
COD
E
TO - (Allotment Class, e.g., C0)
P/A/P
OBJECT OF EXPENDITURE
DESCRIPTION
100000100001000 General Management and
and Supervision
310100100001000
Capital Outlay - ICT Equipment
Capital Outlay - Computer
Software
Capital Outlay - ICT Equipment
Development and
Implementation of Policies, Capital Outlay - Computer
Software
Plans and Projects Related to
Incomes, Productivity
Improvement and Gain
Sharing
AMOUNT
(in pesos)
258,000.00
126,000.00
6,779,000.00
1,365,000.00
Total
Recommended by:
8,528,000.00
Approved by:
MARIA CRISELDA R. SY
Chief, FMD
Execu�ve Director IV
References:
https://nwpc.dole.gov.ph/wp-content/uploads/2021/12/e-Signed_NWPC-MAF-From-MOOE-toCO-ISSP-No.-2021-06-002.pdf
https://www.dbm.gov.ph/wp-content/uploads/Issuances/2020/National-BudgetCircular/NATIONAL- BUDGET-CIRCULAR-NO-578-dated-January-6-2020.pdf
CONTINUING APPROPRIATIONS
On its textbook definition, continuing budgets are the authorization to support obligation for a
certain purpose or project, such as multi-year construction projects which requires the incurrence
of obligations even without the budget year.
It serves as a temporary funding measure to ensure that essential government functions and
services can still be carried out while the new budget is being finalized.
Infrastructure: Build, Build, Build Program
The Build, Build, Build program is an infrastructure development initiative implemented by the
government of the Philippines. It was launched in 2017 under former President Rodrigo Duterte's
administration with the aim of accelerating economic growth through massive infrastructure
investment. This program is one of the 8-point agenda of the current president, Marcos Jr., in order
to alleviate the hassle in mass transportation in all forms.
Build, Build, Build Program is considered to be a continuing budget given the definition that "This
is an authorization to support obligation for a certain purpose or project, such as multi-year
construction projects which requires the incurrence of obligations even without the budget year."
Generally, infrastructure projects are constructed for more than a year, hence its classification.
In the meantime, according to the given source, the government raised the budget for the Build,
Build, Build Program in 2022 by Php. 108.5B compared to 2021. However, the percentage of the
GDP allocated to the program decreased from 5.4% in 2021 to 5.3% in 2022. The increase in
budget can be attributed to factors such as higher tax collection or increased borrowing. On the
other hand, the decrease in percentage is influenced by the government's decision to prioritize
essential agencies in addressing urgent national concerns like the pandemic.
Supporting Documents
References
https://drive.google.com/drive/mobile/folders/1Qql1trUWuKuW3mwb4xiD3p3bw7J1fHu?usp=drive_link
http://surl.li/iuzbe
SUPPLEMENTAL APPROPRIATIONS
An appropriation that is passed later to a regular annual appropriations act is referred to as a
supplemental appropriation. This type of appropriation is done when the need for funds is too
urgent to be postponed until the following regular annual appropriations act.
Frequently, emergency situations requiring additional funding include natural disasters, public
health crises, and military operations. When an unforeseen event requiring immediate financial
resources occurs, the government may pass a law authorizing the release of additional funds to
address the situation.
Supplemental appropriations are required when the regular budget allocations are insufficient to
cover the costs associated with an emergency or unforeseen circumstance. These funds may be
used for various purposes, such as disaster relief, healthcare, infrastructure maintenance, and
military operations.
Supporting Documents
Reference:
https://www.scribd.com/document/60106811/Supplemental-Budget-of-Brookside-BarangayCity?fbclid=IwAR1ry_21i7If3D6w89YOjpjYjncI4rBdwyXCn4UFB2NFgeZUKE85tAO1LbM#
AUTOMATIC APPROPRIATIONS
It is a regulated by law appropriations planned annually or for a different time. This authorizes the
setting aside or allocation of money for a certain purpose, which money should be available right
away. The number of automatic appropriations may or may not be set forth in the law. Congress
does not need to take action on a regular basis.
Examples:
• Presidential Decree No. 999 - AMENDING REPUBLIC ACT NUMBERED NINE
HUNDRED AND NINETY-TWO, KNOWN AS THE REVISED BUDGET ACT
• Presidential Decree No. 1396 - CREATING THE DEPARTMENT OF HUMAN
SETTLEMENTS AND THE HUMAN SETTLEMENTS DEVELOPMENT
CORPORATION, APPROPRIATING FUNDS THEREFOR, AND ACCORDINGLY
AMENDING CERTAIN PRESIDENTIAL DECREES
References:
https://lawphil.net/statutes/presdecs/pd1976/pd_999_1976.html
https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/26/16961
https://www.investopedia.com/terms/a/appropriation.asp
UNPROGRAMMED FUNDS
This is the standby appropriations authorized by Congress in the annual GAA—can only be used
in the following situations: revenue collections surpass the initial revenue targets in the Budget of
Expenditures and Sources of Financing (BESF) submitted by the President to Congress; new
revenues are collected or realized from sources not originally anticipated in the BESF; or newlyapproved loans for foreign-assisted projects are secured or when conditions are triggered for other
sources of money such completed loan agreements.
As outlined in the Unprogrammed Appropriations below, the funds are allocated for various
purposes in order to provide support such as Infrastructure Projects and Social Programs, AFP
Modernization Program, Budgetary Support to Government-Owned and/or - Controlled
Corporations, Support to Foreign-Assisted Projects, Risk Management Program, Payment of
Arrears of LTO-IT Service, Refund of the Service Development Fee for the Right to Develop the
Nampeidai Property in Tokyo, Japan, Prior Years' LGU Shares, Bangko Sentral ng Pilipinas (BSP)
Equity Infusion pursuant to RA 11211, For payment of Personnel Benefits, Shares of LGUs in
Excise Taxes from Locally Manufactured Virginia-Type Cigarettes, and Procurement of COVID19 Vaccine Booster Shots in accordance to their Personal Services, Maintenance and Other
Operating Expenses, and Capital Outlays. Additionally, the biggest portion of the unprogrammed
fund, as indicated below, is for the support to Procurement of COVID-19 Vaccine Booster Shots
amounting to 45,367,853,000.
Supporting Document
Reference:
https://www.dbm.gov.ph/wp-content/uploads/NEP2022/UA.pdf
RETAINED INCOME/FUNDS
Based on the textbook definition, it is the collections that are authorized by law to be used directly
by the agencies concerned for their operation or specific purpose. Retained income or funds is the
amount of profit that remains after a business has paid all of its direct costs, indirect costs, income
taxes, and shareholder dividends. This is the percentage of the company's equity that may be
utilized, for example, to fund the purchase of new machinery, research and development, and
marketing.
Budget Utilization Rate Form for State Universities and Colleges Including Earmarked
Incomes
State universities and colleges (SUCs) now have the ability to corporatize and control their own
finances thanks to the execution of the "Higher Education Modernization Act of 1997," CHED
Memorandum Order No. 20, and the "Public Higher Education Reform Framework". As a result
of these laws and regulations, it is now required to evaluate the income collection and utilization
of SUCs.
The table below shows the retained income or funds of Don Honorio Ventura Technological State
University. It can be seen here how much of their budget has been utilized IN 2018 and 2019. It is
also approved and signed by the president of SUC President III.
Supporting Document
Reference:
http://www.dhvsu.edu.ph/images/DHVTSU_Transparency/FY-2019/Planning/BUR201920200220.pdf
REVOLVING FUNDS
Revolving fund means a fund that conducts continuing cycles of business-like activity, in which
the fund charges for the sale of products or services and uses the proceeds to finance its spending,
usually without requirement for annual appropriations. It is a self-replenishing pool of money,
utilizing interest and principal payments on old loans to issue new ones.
Specifically, a revolving fund is intended to pay for short-term needs, such as variations in the
working capital requirements of a company that is subject to seasonal sales. This is done by taking
an initial investment to create a project, and then using the profits to pay back the investment and
fund further project expansions or creation. Moreover, the lender usually imposes a requirement
that the entire loan be paid down at least once a year.
Supporting Documents
Reference:
TRUST RECEIPTS
Trust receipts are defined in the textbook as the receipts by any government agency acting as
trustee, agent, or administrator for the fulfilment of some obligations or conditions. These are
considered to be the funds that are primarily held in trust for a specific purpose or beneficiary in
which the government agency acts as a custodian or trustee.
There will be instances in which organizations will entrust their funds or assets to a government
agency, thus trust receipt will serve as a legal document which will be necessary to ensure that the
government will practice accountability, and transparency for the funds or assets they received as
being the trustee. Furthermore, it will ensure that the legal requirements are complied properly
between the trustor and the trustee.
Moreover, trust receipt will serve as a guide to separate the trust resources from the general funds
of a government agency. It will serve as a guide for the government agency in identifying which
are the funds entrusted to them from the funds that they will use for general purposes. Additionally,
trust receipt will be needed to monitor and ensure that both parties are adhering to the terms or
restrictions associated with the trust.
Supporting Documents
References:
https://www.scribd.com/document/342870920/Trust-Receipt-Sample