Ppbs 2011

THE ESSENTIALS OFTHE ESSENTIALS OF

PLANNINGPLANNINGPROGRAMMINGPROGRAMMINGBUDGETINGBUDGETINGSYSTEMSSYSTEMS

PPBSPPBS

INTEGRATED MANAGEMENT SYSTEMINTEGRATED MANAGEMENT SYSTEM ANALYSIS FOR PROGRAM DECISION ANALYSIS FOR PROGRAM DECISION

MAKINGMAKING PROVIDES MANAGEMENT BETTER PROVIDES MANAGEMENT BETTER

ANALYTICAL BASIS FOR MAKING ANALYTICAL BASIS FOR MAKING PROGRAM DECISIONSPROGRAM DECISIONS

DECISIONS : INTEGRATED THROUGH DECISIONS : INTEGRATED THROUGH PLANNING,PROGRAMMING, & PLANNING,PROGRAMMING, & BUDGETING FUNCTIONSBUDGETING FUNCTIONS

MANAGEMENTMANAGEMENT

THE TERM USED IN CONTEXT OF AN THE TERM USED IN CONTEXT OF AN ORGANIZATION’S OVERALL MANAGEMENT ORGANIZATION’S OVERALL MANAGEMENT AND ADMINISTRATIONAND ADMINISTRATION

PROGRAM DECISION MAKING IS A PROGRAM DECISION MAKING IS A FUNDAMENTAL FUNCTION OF MANAGEMENTFUNDAMENTAL FUNCTION OF MANAGEMENT

PD INVOLVES BASIC CHOICES AS TO THE PD INVOLVES BASIC CHOICES AS TO THE DIRECTION OF AN ORGANIZATION’S EFFORT DIRECTION OF AN ORGANIZATION’S EFFORT IN ALLOCATING RESOURCES ACCORDINGLYIN ALLOCATING RESOURCES ACCORDINGLY

PROGRAM DECISION MAKINGPROGRAM DECISION MAKING

AS A FUNCTION OF MANAGEMENT :AS A FUNCTION OF MANAGEMENT :

1.1. DEFINING OBJECTIVES OF THE DEFINING OBJECTIVES OF THE ORGANIZATION ORGANIZATION

2.2. DECIDING ON THE MEASURES TAKEN DECIDING ON THE MEASURES TAKEN IN PURSUIT OF THE GOALSIN PURSUIT OF THE GOALS

3.3. PUTTING THE SELECTED COURSES PUTTING THE SELECTED COURSES OF ACTION INTO EFFECT OF ACTION INTO EFFECT

PPBSPPBS

PRIMARILY IS CONCERNED WITH PRIMARILY IS CONCERNED WITH MAJOR DECISION-MAKING PROCESSESMAJOR DECISION-MAKING PROCESSES

CONCENTRATED ON THE CONCENTRATED ON THE MANAGEMENT FUNCTIONS THAT MANAGEMENT FUNCTIONS THAT PRECEDE ACTUAL OPERATIONSPRECEDE ACTUAL OPERATIONS

ORGANIZATIONAL FUNCTIONSORGANIZATIONAL FUNCTIONS

1.1. PLANNINGPLANNING

2.2. PROGRAMMINGPROGRAMMING

3.3. BUDGETINGBUDGETING

4.4. OPERATIONSOPERATIONS

5.5. EVALUATIONEVALUATION

> PPBS IS CONCERNED WITH THE FIRST > PPBS IS CONCERNED WITH THE FIRST THREE PHASESTHREE PHASES

PPBSPPBS

PLANNING : PLANNING :

1.1. AIDS IN SELECTION OF ORGANIZATION’S AIDS IN SELECTION OF ORGANIZATION’S OBJECTIVESOBJECTIVES

2.2. EXAMINES COURSES OF ACTION IN EXAMINES COURSES OF ACTION IN PURSUIT OF OBJECTIVESPURSUIT OF OBJECTIVES

3.3. POSES QUESTION IF COURSE OF ACTION POSES QUESTION IF COURSE OF ACTION CONTRIBUTES TO ATTAINMENT OF CONTRIBUTES TO ATTAINMENT OF ORGANIZATION’S GOAL THAN ITS VARIOUS ORGANIZATION’S GOAL THAN ITS VARIOUS ALTERNATIVESALTERNATIVES

PPBSPPBS

PROGRAMMING: PROGRAMMING:

1.1. CONVERTS PLANS TO SPECIFIC CONVERTS PLANS TO SPECIFIC ACTION SCHEDULE FOR THE ACTION SCHEDULE FOR THE ORGANIZATIONORGANIZATION

2.2. DEVELOPS DETAILED RESOURCE DEVELOPS DETAILED RESOURCE REQUIREMENTSREQUIREMENTS

3.3. DEVELOPS ACTIONS NEEDED TO DEVELOPS ACTIONS NEEDED TO IMPLEMENT PLANSIMPLEMENT PLANS

PPBSPPBS

BUDGETING :BUDGETING :

1.1. CONCERNED IN PREPARATION AND CONCERNED IN PREPARATION AND JUSTIFICATION OF ORGANIZATION’S JUSTIFICATION OF ORGANIZATION’S ANNUAL BUDGETANNUAL BUDGET

2.2. FUNCTION - SECURE SUFFICIENT FUNCTION - SECURE SUFFICIENT FUNDS TO PUT THE PROGRAM INTO FUNDS TO PUT THE PROGRAM INTO OPERATIONOPERATION

PPBSPPBS

OPERATIONS :OPERATIONS :

1.1. ACTUAL CARRYING OUT OF ACTUAL CARRYING OUT OF ORGANIZATION’S PROGRAMORGANIZATION’S PROGRAM

2.2. PREPARING FOR OPERATIONS IS THE PREPARING FOR OPERATIONS IS THE OBJECT OF ALL OF THE OTHER OBJECT OF ALL OF THE OTHER PHASESPHASES

PPBSPPBS

EVALUATION :EVALUATION :

1.1. EVALUATES WORTH OF OPERATING EVALUATES WORTH OF OPERATING PROGRAMSPROGRAMS

2.2. WORTH OF ATTAINING GOALS IS WORTH OF ATTAINING GOALS IS MEASURED AND APPRAISEDMEASURED AND APPRAISED

3.3. RESULTS USED TO MODIFY CURRENT RESULTS USED TO MODIFY CURRENT OPERATIONS OR IN PLANNING OPERATIONS OR IN PLANNING FUTURE PROGRAMSFUTURE PROGRAMS

MAJOR OBJECTIVE OF PPBSMAJOR OBJECTIVE OF PPBS

UNIFY THE PLANNING, PROGRAMMING AND UNIFY THE PLANNING, PROGRAMMING AND BUDGETING FUNCTIONSBUDGETING FUNCTIONS

PLANNING - ANALYSIS & RESEARCH, LEADS PLANNING - ANALYSIS & RESEARCH, LEADS TO PROGRAM FORMULATION PROCESS IN TO PROGRAM FORMULATION PROCESS IN PPBSPPBS

ANNUAL BUDGET - DERIVED DIRECTLY FROM ANNUAL BUDGET - DERIVED DIRECTLY FROM ORGANIZATION’S APPROVED PROGRAM & ORGANIZATION’S APPROVED PROGRAM & FINANCIAL PLANFINANCIAL PLAN

PPBSPPBS

RESULTS OF PLANNING : SERVE AS RESULTS OF PLANNING : SERVE AS BASIS TO PREPARE ORGANIZATION’S BASIS TO PREPARE ORGANIZATION’S OVERALL PROGRAMOVERALL PROGRAM

PROGRAM : DERIVED DIRECTLY FROM PROGRAM : DERIVED DIRECTLY FROM THE RESULTS OF THE PLANNING THE RESULTS OF THE PLANNING ACTIVITYACTIVITY

BUDGET PREPARATION : DERIVED BUDGET PREPARATION : DERIVED FROM THE PROGRAMFROM THE PROGRAM

PPBSPPBS

FIVE (5) ELEMENTS CONSTITUTE PPBS:FIVE (5) ELEMENTS CONSTITUTE PPBS:

1.1. A PROGRAM STRUCTUREA PROGRAM STRUCTURE

2.2. APPROVED PROGRAM DOCUMENT WITH APPROVED PROGRAM DOCUMENT WITH PROJECTIONS FOR THE FUTUREPROJECTIONS FOR THE FUTURE

3.3. DECISION-MAKING PROCESSDECISION-MAKING PROCESS

4.4. USE OF ANALYSIS FOR DECISION-MAKING USE OF ANALYSIS FOR DECISION-MAKING PURPOSESPURPOSES

5.5. INFORMATION SYSTEM ADAPTED TO THE INFORMATION SYSTEM ADAPTED TO THE NEEDS OF PPBSNEEDS OF PPBS

PPBSPPBS

ALTHOUGH ELEMENTS ARE ALTHOUGH ELEMENTS ARE INTERRELATED, IT IS STILL POSSIBLE INTERRELATED, IT IS STILL POSSIBLE TO ADOPT INDIVIDUAL ELEMENTS OF TO ADOPT INDIVIDUAL ELEMENTS OF PPBS IN AN ORGANIZATIONPPBS IN AN ORGANIZATION

e.g. ANALYSIS IN DECISION-MAKING e.g. ANALYSIS IN DECISION-MAKING COULD BE ADOPTED WITH GOOD COULD BE ADOPTED WITH GOOD EFFECT WITHOUT THE OTHER EFFECT WITHOUT THE OTHER ELEMENTSELEMENTS

PROGRAM STRUCTUREPROGRAM STRUCTURE

DESIGNED TO SERVE THE NEEDS OF DESIGNED TO SERVE THE NEEDS OF DECISION-MAKING AND FOR DECISION-MAKING AND FOR ALLOCATING THE RESOURCES ALLOCATING THE RESOURCES AVAILABLE TO THE ORGANIZATIONAVAILABLE TO THE ORGANIZATION

ALSO SERVES AS A FRAMEWORK FOR ALSO SERVES AS A FRAMEWORK FOR PREPARING PROGRAM MEMORANDA PREPARING PROGRAM MEMORANDA WHICH JUSTIFY PROPOSED WHICH JUSTIFY PROPOSED PROGRAMSPROGRAMS

PROGRAM STRUCTUREPROGRAM STRUCTURE

REPRESENTS A WAY OF LOOKING AT AN REPRESENTS A WAY OF LOOKING AT AN ORGANIZATION’S EFFORTS THAT IS SUITED ORGANIZATION’S EFFORTS THAT IS SUITED TO THE NEEDS OF PROGRAM ANALYSIS AND TO THE NEEDS OF PROGRAM ANALYSIS AND PROGRAM DECISION-MAKINGPROGRAM DECISION-MAKING

IDENTIFIES MAJOR AGENCY OBJECTIVES IDENTIFIES MAJOR AGENCY OBJECTIVES WITH THE COURSES OF ACTION SELECTED WITH THE COURSES OF ACTION SELECTED TO ACHIEVE THOSE OBJECTIVES – WHAT TO ACHIEVE THOSE OBJECTIVES – WHAT THE AGENCY IS TRYING TO ACHIEVE, WHAT THE AGENCY IS TRYING TO ACHIEVE, WHAT MEASURES ARE TAKEN TO ATTAIN SUCH MEASURES ARE TAKEN TO ATTAIN SUCH OBJECTIVESOBJECTIVES

ORGANIZATIONAL OBJECTIVESORGANIZATIONAL OBJECTIVES

ORGANIZATIONAL OBJECTIVES OR GOALS ORGANIZATIONAL OBJECTIVES OR GOALS ARE DEFINED WITH SUFFICIENT PRECISIONARE DEFINED WITH SUFFICIENT PRECISION

TO PERMIT THEIR ALIGNMENT WITH THE TO PERMIT THEIR ALIGNMENT WITH THE COURSES OF ACTION THAT DIRECTLY COURSES OF ACTION THAT DIRECTLY CONTRIBUTE TO THEIR ACHIEVEMENTCONTRIBUTE TO THEIR ACHIEVEMENT

GOALS THEREFORE MUST BE USEFUL IN AN GOALS THEREFORE MUST BE USEFUL IN AN OPERATIONAL SENSE, PROVIDING GUIDANCE OPERATIONAL SENSE, PROVIDING GUIDANCE TO CONSIDER ALTERNATIVE COURSES OF TO CONSIDER ALTERNATIVE COURSES OF ACTIONACTION

PPBS – GOVERNMENT SETTINGPPBS – GOVERNMENT SETTING

WHAT IS A “FUND”?WHAT IS A “FUND”? AN APPROPRIATION WHICH IS A AN APPROPRIATION WHICH IS A

LEGISLATIVE AUTHORIZATION TO LEGISLATIVE AUTHORIZATION TO SPENDSPEND

AN AUTHORIZATION BY THE DBM TO AN AUTHORIZATION BY THE DBM TO OBLIGATE, OR AS ACTUAL CASH OBLIGATE, OR AS ACTUAL CASH AVAILABLEAVAILABLE

WHAT LAW GOVERNS THE USE WHAT LAW GOVERNS THE USE OF GOVERNMENT FUNDS?OF GOVERNMENT FUNDS?

ARTICLE VI, SEC. 29 PHIL. CONST.ARTICLE VI, SEC. 29 PHIL. CONST. ““NO MONEY SHALL BE PAID BY THE NO MONEY SHALL BE PAID BY THE

TREASURY EXCEPT IN PURSUANCE OF AN TREASURY EXCEPT IN PURSUANCE OF AN APPROPRIATION MADE BY LAW.”APPROPRIATION MADE BY LAW.”

ALL GOVERNMENT ENTITIES TO UNDERGO ALL GOVERNMENT ENTITIES TO UNDERGO THE BUDGETING PROCESSTHE BUDGETING PROCESS

AND SECURE FUNDS FOR USE IN CARRYING AND SECURE FUNDS FOR USE IN CARRYING OUT THEIR MANDATED FUNCTIONS, OUT THEIR MANDATED FUNCTIONS, PROGRAMS AND ACTIVITIESPROGRAMS AND ACTIVITIES

HOW ARE GOVERNMENT FUNDS HOW ARE GOVERNMENT FUNDS APPROPRIATED?APPROPRIATED?

1.1. INDIVIDUAL AGENCIES PREPARE THEIR ESTIMATES INDIVIDUAL AGENCIES PREPARE THEIR ESTIMATES OF EXPENDITURES OF EXPENDITURES

2.2. AGENCIES JUSTIFY DETAILS OF THEIR PROPOSED AGENCIES JUSTIFY DETAILS OF THEIR PROPOSED BUDGETS BEFORE DBMBUDGETS BEFORE DBM

3.3. DBM REVIEWS AND CONSOLIDATES PROPOSED DBM REVIEWS AND CONSOLIDATES PROPOSED BUDGETS BUDGETS

4.4. AGENCIES EXPLAIN THE DETAILS OF THEIR AGENCIES EXPLAIN THE DETAILS OF THEIR PROPOSED BUDGETS IN SENATE HEARINGSPROPOSED BUDGETS IN SENATE HEARINGS

5.5. PRESIDENT SIGNS THE GENERAL PRESIDENT SIGNS THE GENERAL APPROPRIATIONS BILL INTO LAW – THE GENERAL APPROPRIATIONS BILL INTO LAW – THE GENERAL APPROPRIATIONS ACT (GAA)APPROPRIATIONS ACT (GAA)

WHAT IS A GOVERNMENT WHAT IS A GOVERNMENT BUDGET?BUDGET?

FINANCIAL PLAN OF A GOVERNMENT FINANCIAL PLAN OF A GOVERNMENT FOR A GIVEN PERIOD FOR A FISCAL FOR A GIVEN PERIOD FOR A FISCAL YEARYEAR

SHOWS : RESOURCES & HOW THEY SHOWS : RESOURCES & HOW THEY WILL BE GENERATED AND USEDWILL BE GENERATED AND USED

KEY INSTRUMENT IN PROMOTING THE KEY INSTRUMENT IN PROMOTING THE GOVERNMENT’S SOCIO-ECONOMIC GOVERNMENT’S SOCIO-ECONOMIC OBJECTIVESOBJECTIVES

GOVERNMENT BUDGETGOVERNMENT BUDGET

ALSO REFERS TO THE INCOME, EXPENDITURES AND ALSO REFERS TO THE INCOME, EXPENDITURES AND SOURCES OF BORROWINGS OF THE NATIONAL SOURCES OF BORROWINGS OF THE NATIONAL GOVERNMENTGOVERNMENT

SEC 22 ART. VII STATES “ THE PRESIDENT SHALL SEC 22 ART. VII STATES “ THE PRESIDENT SHALL SUBMIT TO THE CONGRESS WITHIN 30 DAYS FROM SUBMIT TO THE CONGRESS WITHIN 30 DAYS FROM THE OPENING OF EVERY REGULAR SESSION, AS THE THE OPENING OF EVERY REGULAR SESSION, AS THE BASIS OF THE GENERAL APPROPRIATION BILL (GAB), BASIS OF THE GENERAL APPROPRIATION BILL (GAB), A BUDGET OF EXPENDITURES AND SOURCES OF A BUDGET OF EXPENDITURES AND SOURCES OF FINANCING INCLUDING RECEIPTS FROM EXISTING FINANCING INCLUDING RECEIPTS FROM EXISTING AND PROPOSED REVENUE MEASURES”AND PROPOSED REVENUE MEASURES”

EXPENDITURE PROGRAMEXPENDITURE PROGRAM

PORTION OF THE NATIONAL BUDGET PORTION OF THE NATIONAL BUDGET REFERRING TO THE CURRENT REFERRING TO THE CURRENT OPERATING EXPENDITURES AND OPERATING EXPENDITURES AND CAPITAL OUTLAYSCAPITAL OUTLAYS

NECESSARY FOR THE OPERATION OF NECESSARY FOR THE OPERATION OF THE PROGRAMS, PROJECTS AND THE PROGRAMS, PROJECTS AND ACTIVITES OF THE VARIOUS ACTIVITES OF THE VARIOUS GOVERNMENT DEPARTMENTS AND GOVERNMENT DEPARTMENTS AND AGENCIESAGENCIES

FINANCING PROGRAMFINANCING PROGRAM

THE FINANCING PROGRAM INCLUDES THE FINANCING PROGRAM INCLUDES THE PROJECTED REVENUES FROM THE PROJECTED REVENUES FROM BOTH EXISTING AND NEW MEASURES, BOTH EXISTING AND NEW MEASURES, THE PLANNED BORROWINGS TO THE PLANNED BORROWINGS TO FINANCE BUDGETARY TRANSACTIONS FINANCE BUDGETARY TRANSACTIONS AND THE PAYMENT OF DEBT PRINCIPAL AND THE PAYMENT OF DEBT PRINCIPAL FALLING DUEFALLING DUE

THE NATIONAL GOVERNMENT THE NATIONAL GOVERNMENT BUDGETBUDGET

TOTALITY OF THE BUDGETS OF TOTALITY OF THE BUDGETS OF VARIOUS DEPARTMENTS OF THE VARIOUS DEPARTMENTS OF THE NATIONAL GOVERNMENTNATIONAL GOVERNMENT

INCLUDES THE NATIONAL INCLUDES THE NATIONAL GOVERNMENT SUPPORT TO LOCAL GOVERNMENT SUPPORT TO LOCAL GOVERNMENT UNITS (LGUs) AND GOVERNMENT UNITS (LGUs) AND GOVERNMENT-OWNED AND GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS (GOCCs)CONTROLLED CORPORATIONS (GOCCs)

NATIONAL GOVERNMENT NATIONAL GOVERNMENT BUDGETBUDGET

ALLOCATED FOR THE IMPLEMENTATION OF ALLOCATED FOR THE IMPLEMENTATION OF VARIOUS GOVERNMENT PROGRAMS AND VARIOUS GOVERNMENT PROGRAMS AND PROJECTSPROJECTS

OPERATION OF GOVERNMENT OFFICES, OPERATION OF GOVERNMENT OFFICES, PAYMENT OF SALARIES OF GOVERNMENT PAYMENT OF SALARIES OF GOVERNMENT EMPLOYEES & PAYMENT OF PUBLIC DEBTSEMPLOYEES & PAYMENT OF PUBLIC DEBTS

CLASSIFIED BY EXPENSE CLASS, SECTOR CLASSIFIED BY EXPENSE CLASS, SECTOR AND IMPLEMENTING UNIT OF GOVERNMENTAND IMPLEMENTING UNIT OF GOVERNMENT

WHY DOES THE GOVERNMENT PREPARE WHY DOES THE GOVERNMENT PREPARE A NEW BUDGET EVERY YEAR?A NEW BUDGET EVERY YEAR?

IN ACCORDANCE WITH THE CONSTITUTIONIN ACCORDANCE WITH THE CONSTITUTION IN CONSONANCE WITH THE PRINCIPLE IN CONSONANCE WITH THE PRINCIPLE

REQUIRING ALL GOVERNMENT SPENDINGS REQUIRING ALL GOVERNMENT SPENDINGS TO BE JUSTIFIED ANEW EACH YEAR.TO BE JUSTIFIED ANEW EACH YEAR.

ENSURES THAT GOVERNMENT ENTITIES ENSURES THAT GOVERNMENT ENTITIES CONTINUOUSLY EVALUATE AND REVIEW THE CONTINUOUSLY EVALUATE AND REVIEW THE ALLOCATION OF RESOURCES ALLOCATION OF RESOURCES

SOURCES OF APPROPRIATIONSOURCES OF APPROPRIATION

1.1. NEW GENERAL APPROPRIATIONS NEW GENERAL APPROPRIATIONS UNDER THE GENERAL UNDER THE GENERAL APPROPRIATIONS ACT (GAA)APPROPRIATIONS ACT (GAA)

2.2. EXISTING APPROPRIATIONS EXISTING APPROPRIATIONS PREVIOUSLY AUTHORIZED BY PREVIOUSLY AUTHORIZED BY CONGRESS. CONGRESS.

3.3. GOVERNED BY ARTICLE VI SECTION GOVERNED BY ARTICLE VI SECTION 29 OF THE CONSTITUTION29 OF THE CONSTITUTION

EXISTING OR CONTINUING EXISTING OR CONTINUING APPROPRIATIONSAPPROPRIATIONS

PREVIOUSLY ENACTED BY CONGRESS PREVIOUSLY ENACTED BY CONGRESS AND WHICH CONTINUE TO REMAIN AND WHICH CONTINUE TO REMAIN VALID AS AN APPROPRIATION VALID AS AN APPROPRIATION AUTHORITY FOR THE EXPENDITURE OF AUTHORITY FOR THE EXPENDITURE OF PUBLIC FUNDSPUBLIC FUNDS

TWO TYPES OF EXISTING TWO TYPES OF EXISTING APPROPRIATIONSAPPROPRIATIONS

1.1. CONTINUING : CONTINUING :

* APPROPRIATIONS AVAILABLE TO SUPPORT * APPROPRIATIONS AVAILABLE TO SUPPORT OBLIGATIONS FOR A SPECIFIED PURPOSE OBLIGATIONS FOR A SPECIFIED PURPOSE OR PROJECTOR PROJECT

* MULTI-YEAR CONSTRUCTION PROJECTS * MULTI-YEAR CONSTRUCTION PROJECTS REQUIRING INCURRENCE OF OBLIGATIONS REQUIRING INCURRENCE OF OBLIGATIONS BEYOND THE BUDGET YEARBEYOND THE BUDGET YEAR

* RA 8150 (PUBLIC WORKS ACT OF 1995 AND * RA 8150 (PUBLIC WORKS ACT OF 1995 AND RA 6657, RA 8532RA 6657, RA 8532

AUTOMATIC APPROPRIATIONAUTOMATIC APPROPRIATION

APPROPRIATION PROGRAMMED APPROPRIATION PROGRAMMED ANNUALLY OR FOR SOME OTHER ANNUALLY OR FOR SOME OTHER PERIOD PRESCRIBED BY LAW BY PERIOD PRESCRIBED BY LAW BY VIRTUE OF OUTSTANDING VIRTUE OF OUTSTANDING LEGISLATION REQUIRING PERIODIC LEGISLATION REQUIRING PERIODIC ACTION BY CONGRESSACTION BY CONGRESS

EXAMPLES: PD 1967; RA 4860; RA 245; EXAMPLES: PD 1967; RA 4860; RA 245; COMMONWEALTH ACT 186; RA 660; PD COMMONWEALTH ACT 186; RA 660; PD 1177; EXECUTIVE ORDER 292 & PD 12341177; EXECUTIVE ORDER 292 & PD 1234

ARE ALL APPROPRIATIONS ARE ALL APPROPRIATIONS SUPPORTED BY RESOURCES?SUPPORTED BY RESOURCES?

ONLY PROGRAMMED APPROPRIATIONS ONLY PROGRAMMED APPROPRIATIONS ARE SUPPORTED BY CORRESPONDING ARE SUPPORTED BY CORRESPONDING RESOURCESRESOURCES

UNPROGRAMMED APPROPRIATIONS UNPROGRAMMED APPROPRIATIONS ARE NOT YET SUPPORTED BY ARE NOT YET SUPPORTED BY CORRESPONDING RESOURCESCORRESPONDING RESOURCES

INCLUDED IN CONGRESS IN THE G.A.A.INCLUDED IN CONGRESS IN THE G.A.A. CALLED STANDBY APPROPRIATIONSCALLED STANDBY APPROPRIATIONS

““ONE FUND” CONCEPTONE FUND” CONCEPT

POLICY ENUNCIATED THROUGH PD POLICY ENUNCIATED THROUGH PD 11771177

ALL INCOME AND REVENUES OF ALL INCOME AND REVENUES OF GOVERNMENT MUST ACCRUE TO THE GOVERNMENT MUST ACCRUE TO THE GENERAL FUNDGENERAL FUND

FREELY ALLOCATED TO FUND FREELY ALLOCATED TO FUND PROGRAMS AND PROJECTS OF PROGRAMS AND PROJECTS OF GOVERNMENT AS PRIORITIZEDGOVERNMENT AS PRIORITIZED

““ONE-FUND” CONCEPT –ITS ONE-FUND” CONCEPT –ITS IMPORTANCE IMPORTANCE

* FISCAL MANAGEMENT POLICY * FISCAL MANAGEMENT POLICY : All revenues and other receipts of : All revenues and other receipts of

government must enter the General Fundgovernment must enter the General Fund : Utilization and disbursement subject to the : Utilization and disbursement subject to the

budgeting processbudgeting process• AVENUE for Fiscal authorities to properly AVENUE for Fiscal authorities to properly

allocate scarce government resourcesallocate scarce government resources• MECHANISM to control drawdowns on MECHANISM to control drawdowns on

pooled resourcespooled resources

BALANCED BUDGETBALANCED BUDGET

BALANCED BUDGET : REVENUES BALANCED BUDGET : REVENUES MATCH EXPENDITURES OR MATCH EXPENDITURES OR DISBURSEMENTSDISBURSEMENTS

UNBALANCED BUDGET : UNBALANCED BUDGET : EXPENDITURES EXCEED REVENUESEXPENDITURES EXCEED REVENUES

GOVERNMENT INCURS DEFICIT GOVERNMENT INCURS DEFICIT LEADING TO BORROWINGS – FOREIGN LEADING TO BORROWINGS – FOREIGN OR DOMESTIC OR DOMESTIC

FISCAL POLICYFISCAL POLICY

HISTORICALLY, NATIONAL HISTORICALLY, NATIONAL GOVERNMENT EXPENDITURES HAVE GOVERNMENT EXPENDITURES HAVE ALWAYS EXCEEDED TOTAL REVENUESALWAYS EXCEEDED TOTAL REVENUES

RESULTED TO ANNUAL BUDGET RESULTED TO ANNUAL BUDGET DEFICITSDEFICITS

N.G. RESORTS TO BORROWINGS TO N.G. RESORTS TO BORROWINGS TO COVER DEFICITSCOVER DEFICITS

RESULTED TO BALLOONING FOREIGN RESULTED TO BALLOONING FOREIGN AND DOMESTIC DEBTS AND DOMESTIC DEBTS

SURPLUS BUDGETING – A SURPLUS BUDGETING – A NECESSITYNECESSITY

TO ENCOURAGE ECONOMIC GROWTHTO ENCOURAGE ECONOMIC GROWTH LESS BORROWINGS, MORE FUNDS LESS BORROWINGS, MORE FUNDS

AVAILABLE IN FINANCIAL MARKETSAVAILABLE IN FINANCIAL MARKETS FUNDS AVAILABLE CAN BE USED BY FUNDS AVAILABLE CAN BE USED BY

BUSINESSES TO BUILD FACTORIES, BUSINESSES TO BUILD FACTORIES, HIRE WORKERS, BUY EQUIPMENT, HIRE WORKERS, BUY EQUIPMENT, OPEN MORE EMPLOYMENT OPEN MORE EMPLOYMENT OPPORTUNITIESOPPORTUNITIES

SURPLUS BUDGET – A SURPLUS BUDGET – A NECESSITYNECESSITY

TO REPAY HUGE DEBT IT TO REPAY HUGE DEBT IT ACCUMULATED OVER THE YEARSACCUMULATED OVER THE YEARS

REDUCTION OF NATIONAL BUDGET REDUCTION OF NATIONAL BUDGET DEBT, LESSENS GOVERNMENT’S DEBT, LESSENS GOVERNMENT’S REQUIREMENTS FOR INTEREST AND REQUIREMENTS FOR INTEREST AND PRINCIPAL PAYMENTSPRINCIPAL PAYMENTS

IMPORTANT DURING PERIODS OF IMPORTANT DURING PERIODS OF RISING INTEREST RATES AND RISING INTEREST RATES AND UNSTABLE EXCHANGE RATES UNSTABLE EXCHANGE RATES

TOTAL RESOURCE BUDGET TOTAL RESOURCE BUDGET CONCEPTCONCEPT

NATIONAL GOVERNMENT BUDGET CONSIDERED AS NATIONAL GOVERNMENT BUDGET CONSIDERED AS ONLY ONE COMPONENT OF THE ENTIRE PUBLIC ONLY ONE COMPONENT OF THE ENTIRE PUBLIC SECTOR RESOURCESSECTOR RESOURCES

GOVERNMENT OWNED AND CONTROLLED GOVERNMENT OWNED AND CONTROLLED CORPORATIONS(GOCCs) AND THE LOCAL CORPORATIONS(GOCCs) AND THE LOCAL GOVERNMENT UNITS (LGUs) ALSO CONSIDERED GOVERNMENT UNITS (LGUs) ALSO CONSIDERED SUBSTANTIAL CONTRIBUTORS TO TOTAL PUBLIC SUBSTANTIAL CONTRIBUTORS TO TOTAL PUBLIC RESOURCESRESOURCES

GOCCs AND LGUs – REQUIRED TO PREPARE THEIR GOCCs AND LGUs – REQUIRED TO PREPARE THEIR BUDGET CONSISTENT IN FORM AND TIMING WITH BUDGET CONSISTENT IN FORM AND TIMING WITH THAT OF THE N.G. TO FACILITATE COMPREHENSIVE THAT OF THE N.G. TO FACILITATE COMPREHENSIVE EVALUATION OF THE OVER-ALL BUDGET.EVALUATION OF THE OVER-ALL BUDGET.

CONSOLIDATED PUBLIC SECTOR CONSOLIDATED PUBLIC SECTOR FISCAL POSITIONFISCAL POSITION

CPSFP : NET DEFICIT OR SURPLUS CPSFP : NET DEFICIT OR SURPLUS CALCULATED AFTER SUMMING-UP THE CALCULATED AFTER SUMMING-UP THE BUDGET BALNCES OF ALL BUDGET BALNCES OF ALL GOVERNMENT ENTITIESGOVERNMENT ENTITIES

N.G., GOCCs, GFIs, LGUs, SOCIAL N.G., GOCCs, GFIs, LGUs, SOCIAL SECURITY INSTITUTIONS, OPSF, BSP, SECURITY INSTITUTIONS, OPSF, BSP, CB BOARD OF LIQUIDATORSCB BOARD OF LIQUIDATORS

PPBS – GOVERNMENT SETTINGPPBS – GOVERNMENT SETTING

PPBS IS A CONCEPT THAT STRESSES THE PPBS IS A CONCEPT THAT STRESSES THE IMPORTANCE OF ESTABLISHING A STRONG IMPORTANCE OF ESTABLISHING A STRONG LINKAGE BETWEEN PLANNING AND LINKAGE BETWEEN PLANNING AND BUDGETING.BUDGETING.

EMANATES FROM THE POLICY OF THE EMANATES FROM THE POLICY OF THE GOVERNMENT TO FORMULATE AND GOVERNMENT TO FORMULATE AND IMPLEMENT A NATIONAL BUDGETIMPLEMENT A NATIONAL BUDGET

NATIONAL BUDGET – INSTRUMENT OF NATIONAL BUDGET – INSTRUMENT OF NATIONAL DEVELOPMENT, REFLECTIVE OF NATIONAL DEVELOPMENT, REFLECTIVE OF NATIONAL OBJECTIVES, STRATEGIES AND NATIONAL OBJECTIVES, STRATEGIES AND PLANSPLANS

PPBS – GOVERNMENT SETTINGPPBS – GOVERNMENT SETTING

UNDER THE PPBS CONCEPT, THE BUDGET IS UNDER THE PPBS CONCEPT, THE BUDGET IS ANCHORED ON THE DEGREE BY WHICH THE ANCHORED ON THE DEGREE BY WHICH THE ACCOMPLISHMENT OF ECONOMIC PLANS ACCOMPLISHMENT OF ECONOMIC PLANS AND THE ATTAINMENT OF TARGET AND THE ATTAINMENT OF TARGET CONTAINED IN THE MEDIUM-TERM CONTAINED IN THE MEDIUM-TERM PHILIPPINE DEVELOPMENT PLAN (MTDP) AND PHILIPPINE DEVELOPMENT PLAN (MTDP) AND THE MEDIUM TEMR PUBLIC INVESTMENT THE MEDIUM TEMR PUBLIC INVESTMENT PROGRAM (MTPIP) ARE SUPPORTEDPROGRAM (MTPIP) ARE SUPPORTED