Republic of the Philippines

SORSOGON STATE UNIVERSITY

School of Graduate Studies
Sorsogon City

Course Code : P.A. 504

Subject : Foundation and Dynamics of Government Policies
Professor : Librada H. Esplana, Ph.D.
Term : Summer 2021
Discussant : Mylene Lee Pantoja

DEPARTMENT OF BUDGET AND MANAGEMENT

Mandate:

The Department of Budget and Management, created under Executive Order No. 25 dated April
25, 1936, is mandated under this Order and by subsequent issuances to promote the sound, efficient
and effective management and utilization of government resources (i.e., technological, manpower,
physical and financial) as instrument in the achievement of national socioeconomic and political
development goals.

Mission:

The Department of Budget and Management shall lead public expenditure management to ensure
the equitable, prudent, transparent and accountable allocation and use of public funds to improve
the quality of life of each and every Filipino.

Vision:

By 2022, we envision the Department of Budget and Management to be:

A champion of results-oriented budget and management policies and practices that enable
the government to steer the country towards meaningful development that empowers the
poor and the marginalized; An implementer of world-class budget and management
systems that enhance transparency, accountability and public participation in governance.
An institution composed of highly competent and motivated public servants who observe
the highest standards of professionalism and integrity.

Service Pledge:

Professionalism
Results orientation
Integrity
Nationalism
Creativity
Impariality
Partnership
Leadership
Excellence
Dedication

Principles:

Spending with Means

Spending on the Right Priorities
Spending with Measurable Results
 Citizen Empowerment

Following are the general functions of the Department:

Formulates the overall resource application strategy to match the government’s

macroeconomic policy;

Prepares the medium-term expenditure plan, indicating the programming, prioritization,

and financing of capital investment and current operating expenditure requirements of
medium-term sectoral development plans;

Undertakes the formulation of the annual national budget in a way that ensures the
appropriate prioritization and allocation of funds to support the annual program of
government;

Develops and administers a national accounting system essential to fiscal management and
control;

Conducts a continuing study of the bureaucracy and assesses as well as makes policy
recommendation on its role, size, composition, structure and functions to establish a
government bureaucracy imbued with a spirit of public service;

Establishes the rules and procedures for the management of government organization
resources i.e., physical, manpower and other resources, formulates standards of
organizational program performance; and undertakes or provides services in work
simplification or streamlining of systems and procedures to improve efficiency and
effectiveness in government operations;

Conceptualizes and administers the government’s compensation and position classification

plan; and

Monitors and assesses the physical as well as the financial operations of local government
units and government-owned and/or – controlled corporations.

Budget and Management Operation Group

Bureau A Bureau B Bureau C Bureau D Bureau E Bureau F
DOF DOH Office of the DFA DAR DepED
Pres.
DPWH DOLE CSC DILG DA DOST
DOT DSWD COA CHR DOE CHED
DTI HLURB COMELEC PDEA DENR SUCs
DOTr MTRCB GOCCs Office of the DICT UP
 Ombudsman
NEDA NAPC SENATE NICA NDRRMF MSU
Mindanao NAP DAP ARRM ERC
Devt
Authority
NHCP PLLO DND
PSC AMLC DDB

1. Operational policy reviews in collaboration / consultation with client agencies.

2. Recommend budget and management policy improvements.
3. Provide inputs operations guidelines.
4. Recommend /position papers on legislative proposals/ bills and planned executive issuances
with funding implications and specific agency issues on organization, compensation and
position classification.
5. Evaluate / validate the appriasal of nes projects/ policies proposed by agnecies.
6. Update/ maintin a DBM – managed Financial Expenses (FEs)/ Medium Term Expenditure
Frameworks (MTEFs) as a budget planning and management decision tool.
7. Ensure the mainstreaming of medium-term and results-based budgeting and performance
management reforms.
8. Provide technical assistance and advice on all aspects of public resource and expenditure
management.
9. Plan and undertake agency budget preparation activities.
10. Evaluate agency requests for minor changes in organization, staffing, compenstaion and
position classification and administer the GMIS of agencies.
11. Evaluate funding requirements of agencies and prepare / issue corresponding release
documents.
12. Administer lump sum funds / special purpose funds.
13. Monitor and evaluate financial physical performance of agencies in the context of OPIF.
14. Evaluate agency program and project performance and overall organization efficiency and
effectivenss vis-à-vis development goals/targets/priorities in the context of MTEF and OPIF.

THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES

Article VI. Sec.29

“No money shall be paid by the Treasury except in pursuance of an appropriation made by
law.”

No public money or property shall be appropriated, applied, paid, or employed, directly or

indirectly, for the use, benefit, or support of any sect, church, denomination, sectarian
institution, or system of religion, or of any priest, preacher, minister, or other religious
teacher, or dignitary as such, except when such priest, preacher, minister, or dignitary is
assigned to the armed forces, or to any penal institution, or government orphanage or
leprosarium.

All money collected on any tax levied for a special purpose shall be treated as a special fund
and paid out for such purpose only. If the purpose for which a special fund was created has
been fulfilled or abandoned, the balance, if any, shall be transferred to the general funds of
the Government.

The need for all government entities to undergo the budgeting process to secure funds for use in
carrying out their mandated functions,programs and activities.
 What is the Government Budget

National Budget

 Financial plan of government for given period (FY)

 Shows what is resources are, and how they will be generated and used
 The government’s key instrument for promoting its socio-economic objectives
 Also refers to the income, expenditures and sources of borrowings of the NG used to achieve
national objectives, strategies and programs
 The President shall submit to the Congress within 30 days from the opening of every
regular session, as the basis of the GAB, a Budget expenditures and sources of financing
including receipts from existing and proposed revenue measure” Section 22 (Article VII of
the Constitution)

Budget Preparation – This phase of the Budget Cycle starts with the issuance of the Budget
Call and ends with the President’s submission of the proposed budget to Congress
Budget Call

 National Budget Call

 Corporate Budget Call
 Summary of Appropriations

Budget Legislation – The legislation or authoriztaion phase starts upon the House Speaker’s
receipt of the President Budget and ends with Presidents enactment of the General
Appropriations Act.
o Congress
 Budget hearing Debate (August-November)
 House approval and submission to Senate (Nonember)
 Senate Hearing Devate (August-November)
 Senate Approval (December)
 Conference Committee (December)
 President signs the General Appropriation Act (GAA) –(December)

Budget Execution - (Internal Revenue Allotment – IRA)

 Where people’s people is actually spend
 soon as the GAA is enacted, the government can implement its authority
programs and projects.
 Release Guidelines and Program
 Budget Execution Documents (BEDSs)

Budget Accountability
 DBM monitors the efficiency of government’s fund utilization. Assess agency
performance and provides vital basis for budget preparation and policy and
reforms making
 Assessment of FY 2022

Budget Frame work for 2021

The Ph.4.335 trillion cash appropritaions will focus on strengthening the country’s capacity to
address the COVID-19 pandemic-ensuring food security, fueling the economic recovery, enabling a
digital government and economy, and helping communities to adjust to the new normal after the
pandemic.

Health

Imrove the conutrys health system by establishing more health facilities and laboratories
and purchasing necessary hopsital equipment to address COVID-19 and other infectious
diseases.
Sustain funding for regular health programs of the DOH and the implementation of the
Universal health Care Law
Ensure the suffiecient and efficient deployment of Human Resources for health.

Food Security

Ensure unhampered movement of agricultural goods and services through efficient

transport and logistics systems.
Intesify provisions of support services and farm machineries and equipment to farmers and
agriculture-based enterprises

Infrastracture

Priotize crucial and shovel-ready projects under the Build,BuildBuild Programs to focus on
health-related facilities and digital infrastracture
Construct and enchance logistics and roas infrastracture

Governance

Fast-track implementation of the Philippine Identification System

Invest in information and communications technology for online and remote government
operations and continue support for Department of Information and Technology programs
Conduct Capacity building and continous learning programs, including the use of e-
learning platrforms and digital upskilling

Industry and Livelihood

Expand Shared Service Facilities and Regional Inclusive Innovation Centers

Assist micro,small and medium enterprises (MSME) through the MSME Resiliency
Program and other capacity building projects
Promote the Balik-Probinsya program

Budget Framework for 2022

Funding for FY 2022 shall give priority to strategic programs focusing on the continued
recovery and strengthening of the resilience of the country in the post-pandemic life-enhancing the
country’s health system, empowering local government units, and providing for a more efficient
and inclusive social support and protection.

Health and Nutrition

Continue the procurement and distribution of vaccines to curb the spread of the COVID-19
Provide booster shots to people who received the vaccines to strengthen their immune
system and reduce the chances of having the adverse symptoms of the virus
Enhance the capacity for knowledge and technology generation, acquisition and adoption of
the country’s health system through the establishment of the Virology Science and
Technology Institute of the Philippines
Address the prevalent problem of stunting and malnutrition among Filipino children
through a multisectoral approach which is consistent with the national priorities and
roadmap for achieving zero hunger Social Protection
Intensify the implementation of the Family Planning Program to reduce the rapid
population growth and increase the awareness and knowledge on the importance and
benefits of family planning
Sustain the demographic dividend of having young, healthy, educated, and skilled working-
age population to ensure the continued productivity of the economy
Budget Priorities Governance

Aid poor, disadvantaged and lagging Local Government Units (LGUs) through a Growth
Equity Fund that will help cover their financial and capacity development needs to
implement devolved functions and services
Support the capacity development programs of National Government Agencies for LGUs to
empower and help them provide better service to the citizens
Fast-tracking the implementation of the Philippine Identification System (PhilSys) for a
more efficient and inclusive provision of key services to the people

Reference:
https://www.dbm.gov.ph/index.php/budget-documents/2021/2021-budget-priorities-framework
https://www.dbm.gov.ph/index.php/budget-documents/2022/2022-budget-priorities-framework
https://www.officialgazette.gov.ph/constitutions/the-1987