Ppbs 2011

1. THE ESSENTIALS OFTHE ESSENTIALS OF
PLANNINGPLANNING
PROGRAMMINGPROGRAMMING
BUDGETINGBUDGETING
SYSTEMSSYSTEMS

2. 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

3. 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

4. PROGRAM DECISION MAKINGPROGRAM DECISION MAKING
AS A FUNCTION OF MANAGEMENT :AS A FUNCTION OF MANAGEMENT :
2.2.DEFINING OBJECTIVES OF THE DEFINING OBJECTIVES OF THE
ORGANIZATION ORGANIZATION
3.3.DECIDING ON THE MEASURES TAKEN DECIDING ON THE MEASURES TAKEN
IN PURSUIT OF THE GOALSIN PURSUIT OF THE GOALS
4.4.PUTTING THE SELECTED COURSES PUTTING THE SELECTED COURSES
OF ACTION INTO EFFECT OF ACTION INTO EFFECT

5. 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

6. 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

7. PPBSPPBS
PLANNING : PLANNING :
2.2.AIDS IN SELECTION OF ORGANIZATION’S AIDS IN SELECTION OF ORGANIZATION’S
OBJECTIVESOBJECTIVES
3.3.EXAMINES COURSES OF ACTION IN EXAMINES COURSES OF ACTION IN
PURSUIT OF OBJECTIVESPURSUIT OF OBJECTIVES
4.4.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

8. PPBSPPBS
PROGRAMMING: PROGRAMMING:
2.2.CONVERTS PLANS TO SPECIFIC CONVERTS PLANS TO SPECIFIC
ACTION SCHEDULE FOR THE ACTION SCHEDULE FOR THE
ORGANIZATIONORGANIZATION
3.3.DEVELOPS DETAILED RESOURCE DEVELOPS DETAILED RESOURCE
REQUIREMENTSREQUIREMENTS
4.4.DEVELOPS ACTIONS NEEDED TO DEVELOPS ACTIONS NEEDED TO
IMPLEMENT PLANSIMPLEMENT PLANS

9. PPBSPPBS
BUDGETING :BUDGETING :
2.2.CONCERNED IN PREPARATION AND CONCERNED IN PREPARATION AND
JUSTIFICATION OF ORGANIZATION’S JUSTIFICATION OF ORGANIZATION’S
ANNUAL BUDGETANNUAL BUDGET
3.3.FUNCTION - SECURE SUFFICIENT FUNCTION - SECURE SUFFICIENT
FUNDS TO PUT THE PROGRAM INTO FUNDS TO PUT THE PROGRAM INTO
OPERATIONOPERATION

10. PPBSPPBS
OPERATIONS :OPERATIONS :
2.2.ACTUAL CARRYING OUT OF ACTUAL CARRYING OUT OF
ORGANIZATION’S PROGRAMORGANIZATION’S PROGRAM
3.3.PREPARING FOR OPERATIONS IS THE PREPARING FOR OPERATIONS IS THE
OBJECT OF ALL OF THE OTHER OBJECT OF ALL OF THE OTHER
PHASESPHASES

11. PPBSPPBS
EVALUATION :EVALUATION :
2.2.EVALUATES WORTH OF OPERATING EVALUATES WORTH OF OPERATING
PROGRAMSPROGRAMS
3.3.WORTH OF ATTAINING GOALS IS WORTH OF ATTAINING GOALS IS
MEASURED AND APPRAISEDMEASURED AND APPRAISED
4.4.RESULTS USED TO MODIFY CURRENT RESULTS USED TO MODIFY CURRENT
OPERATIONS OR IN PLANNING OPERATIONS OR IN PLANNING
FUTURE PROGRAMSFUTURE PROGRAMS

12. 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

13. 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

14. PPBSPPBS
FIVE (5) ELEMENTS CONSTITUTE PPBS:FIVE (5) ELEMENTS CONSTITUTE PPBS:
2.2.A PROGRAM STRUCTUREA PROGRAM STRUCTURE
3.3.APPROVED PROGRAM DOCUMENT WITH APPROVED PROGRAM DOCUMENT WITH
PROJECTIONS FOR THE FUTUREPROJECTIONS FOR THE FUTURE
4.4.DECISION-MAKING PROCESSDECISION-MAKING PROCESS
5.5.USE OF ANALYSIS FOR DECISION-MAKING USE OF ANALYSIS FOR DECISION-MAKING
PURPOSESPURPOSES
6.6.INFORMATION SYSTEM ADAPTED TO THE INFORMATION SYSTEM ADAPTED TO THE
NEEDS OF PPBSNEEDS OF PPBS

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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)

22. 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

23. 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”

24. 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

25. 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

26. 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)

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. ““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

35. ““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

36. 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

37. 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

38. 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

39. 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

40. 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.

41. 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

42. 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

43. 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