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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