ED.615 - Budgeting-and-Financial-Management.pptx

Budgeting-and-Financial-Management

1. Budgeting and Financial Management in Public Administration

2. Is this what people in the budget preparation long for? Why?

3. 1. Budget Preparation and Execution 2. Revenue Generation TOPICS

4. Describe the budget preparation and execution process in public administration. Explain revenue generation and taxation in public administration. OBJECTIVES

5. Budget Preparation and Execution

6. 1. Budget Preparation: Purpose:  This phase involves setting budget priorities, evaluating proposed budgets from various government agencies, and submitting them to the President and Cabinet.  Timeframe:  Typically occurs from January to July. 

7. H ow is the annual national budget prepared? The preparation of the annual budget involves a series of steps that begins with the determination of the … overall economic targets, expenditure levels, revenue projection and financing plan by the Development Budget Coordinating Committee (DBCC).

8. The DBCC is an inter-agency body composed of; The DBM Secretary as Chairman and the Bangko Sentral Governor, The Secretary of the Department of Finance, The Director General of the National Economic and Development Authority Representative of the Office of the President as members Development Budget Coordinating Committee (DBCC)

9. To meet the Constitutional requirement for the submission of the President’s budget with 30 days from the opening of each regular session of Congress, the budget preparation phase is guided by a budget calendar.

10. 2. Budget Legislation: Purpose:  The President submits the proposed budget to Congress for deliberation and ratification into the General Appropriations Act (GAA).  Timeframe:  Generally takes place from August to December. 

11. The Budget Preparation and Execution follows the General Appropriations Act (GAA) is the legislative authorization that contains the new appropriations in terms of specific amounts for salaries, wages and other personnel benefits; maintenance and other operating expenses; and capital outlays authorized to be spent for the implementation of various programs/projects and activities of all departments, bureaus and offices of the government for a given year. What is the General Appropriations Act?

12. 3. Budget Execution: Purpose:  Once the GAA is enacted, the budget is implemented by government agencies.  Timeframe:  Takes place from January to December. 

13. H ow is the budget implemented? Budget implementation starts with the release of funds to the agencies. To accelerate the implementation of government programs and projects and ensure the judicious use of budgeted government funds, the government adopted the Simplified Fund Release System (SFRS) beginning 1995.

14. 4. Budget Accountability: Purpose:  This phase involves monitoring, evaluating, and reporting on the actual performance of government agencies in implementing the budget.  Timeframe:  Continues throughout the fiscal year (January to December). 

15. Revenue Generation

16. How does the Philippines generate revenue? The Philippine income sources are… Tax Revenues Capital Revenues Grants Extra-Ordinary Income Public Borrowings

17. Tax revenue is the income that is collected by governments through taxation. Taxation is the primary source of government revenue. Two kinds of Tax Revenues Direct Taxes Indirect taxes 1. Tax revenue

18. Capital revenues refer to the income generated through the sale of long-term assets, such as property and machinery . 2. Capital Revenues land, buildings, and equipment, or from gains on these sales like sale of public lands, buildings and other structures, equipment, and other properties recorded as fixed assets

19. Grants refer to voluntary contributions and aids given to the Government for its operation on specific purposes in the form of money and/or materials, and do not require any monetary commitment on the part of the recipient. 3. Grants

20. Extra-ordinary income refers to the repayment of loans and advances made by government corporations and local governments and the receipts and shares in Income of the Central Bank of the Philippines, and other receipts. 4. Extra-ordinary income

21. Public borrowings (i.e., proceeds of repayable obligations generally with interest from domestic and foreign creditors of the Government in general, including the National Government and its political subdivisions) 5. Public borrowings

22. Budgeting has only one rule: Do not go over budget. -Leslie Tayne-

23. References The Budgeting Process. Microsoft Word - Document7 Overview of the Budget System Ruling9