Article 114p. 114

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

investments

in the capital of government-owned or

controlled corporations and their subsidiaries.

(6)

"Continuing

appropriation"

refers

to

an

appropriation

available

to

support

obligations

for

a

specified purpose or project, even when these obligations

are incurred beyond the budget year.

(7) "Expected result" means service, product, or benefit

that will accrue to the public, estimated in terms of

performance measures or targets.

(8) "Fiscal year" refers to the period beginning with the

first day of January and ending with the thirty-first day of

December of each calendar year.

(9)

The

"Government"

means

the

National

Government, including the Executive, the Legislative and

the

Judicial

Branches,

and

the

Constitutional

Commissions.

(10) "Department and agency" and "department or

agency" include all departments, bureaus, offices, boards,

commissions,

courts,

tribunals,

councils,

authorities,

administrations, centers, institutes, state colleges and

universities,

and

all

other

establishments

and

instrumentalities of the National Government as defined

in the preceding paragraph.

(11) "Obligation" refers to an amount committed to be

paid by the Government for any lawful act made by an

authorized officer for and in behalf of the government.

(12) "Program" refers to the functions and activities

necessary for the performance of a major purpose for

which a government agency is established.

(13)

"Project"

means

a

component of a program

covering a homogenous group of activities that results in

the accomplishment of an identifiable output.

CHAPTER 2 Budget Policy and Approach

SECTION 3. Declaration of Policy . — It is hereby

declared

the

policy

of

the

State

to

formulate

and

implement a National Budget that is an instrument of

national development, reflective of national objectives,

strategies and plans. The budget shall be supportive of

and consistent with the socio-economic development

plan and shall be oriented towards the achievement of

explicit objectives and expected results, to ensure that

funds

are

utilized

and

operations

are

conducted

effectively,

economically

and

efficiently. The national

budget shall be formulated within the context of a

regionalized government structure and of the totality of

revenues

and

other

receipts,

expenditures

and

borrowings

of

all

levels

of

government

and

of

government-owned

or

controlled

corporations.

The

budget shall likewise be prepared within the context of

the national long-term plan and of a long-term budget

program.

SECTION 4. Planning and Budgeting Linkage . — The

budget shall be formulated as an instrument for the

attainment of national development goals and as part of

the

planning-programming-budgeting

continuum.

Levels

of

revenue,

expenditure

and

debt

shall

be

established in relation to macro-economic targets of

growth, employment levels, and price level change, and

shall be developed consistent with domestic and foreign

debt, domestic credit and balance of payments objectives

for the budget period. The aggregate magnitudes of the

budget shall be determined in close consultation among

the

planning

and

fiscal

agencies

of

government.

Budgetary

priorities

shall

be

those specified in the

approved national plans, keeping in mind the capability

and

performance

of

the

implementing

agencies

concerned. Agency budget proposals shall explicitly state

linkage to approved agency plans.

SECTION

5.

National

Resource

Budget .

—

The

finances

of

government

shall

be

analyzed

and

determined as the aggregate of revenue, expenditure

and

debt of all units of government, including the

national

government

and

its

agencies

and

instrumentalities,

local

government

units

and

government-owned

or

controlled

corporations.

The

national government budget shall be evolved within the

framework of the total impact of government activity on

the

national

economy.

The

budgets

of government

corporations and local governments shall be consistent in

form and timing with that of the national government, to

facilitate comprehensive evaluation.

SECTION 6. Regional Budgeting . — The budgets of

national government agencies shall take into full and

explicit consideration the goals, plans and requirements

of their respective regional offices, in the interest of full

government response to local thinking and initiative. The

budget preparation process shall originate at regional

and local levels, and shall be consolidated and reviewed

by the central offices of the various national agencies. The

regional development strategies and plans, including

physical framework and resource-use plans, shall be

considered in the preparation of the budget.

SECTION 7. Long Term Budgeting . — The annual

budgets of the national government shall be prepared as

an integral part of a long-term budget picture. The

long-term economic and physical framework plans of

government,

multi-year

requirements

of

approved

programs and projects, organizational and personnel

development strategies, and other commitments entered

into

or otherwise assumed by government shall be

specified in the budget process.

SECTION

8.

Development

Projects .

—

The

development process requires the implementation of

major

development

projects

of

such

size

as

to

significantly

affect

the

infrastructure

program,

debt

ceilings, the balance of payments, domestic credit, and

government expenditure levels. The budget process shall

formally consider the timing of major national projects, in

order to ensure the observance of established fiscal,

monetary, international payments, and other constraints.

SECTION 9. Performance and Financial Review . —

The

analysis

of

agency

operating

performance,

the

evaluation of performance relative to costs incurred and

the review of agency operating systems and procedures

are inherent parts of the budget process. Agencies shall

therefore

design

and

implement

(1)

management

information

systems

yielding

both

performance and

financial information which will adequately monitor and

control budget implementation, and (2) improvements in

operating systems, procedures and practices, so as to

ensure that the targets approved in budget authorization

are in fact attained at minimum cost.

SECTION

10.

Compensation

and

Position

Classification .

—

The

size

of

personnel

services

expenditures relative to the total budget and the number

of agencies and personnel in government call for an

effective

national

compensation

and

position

classification policy. The Constitutional principle of a

single compensation scheme for the government and its

instrumentalities is one of the bases of the government

budget process.

CHAPTER 3 Budget Preparation

SECTION

11.

Submission

of

the

Budget .

—

The

President shall, in accordance with Section 22(1), article VII

of the Constitution, submit within thirty (30) days from

the opening of each regular session of the Congress as

the

basis

for

the

preparation

of

the

General

Appropriations

Act,

a

national

government

budget

estimated

receipts

based

on

existing and proposed

revenue measures, and of estimated expenditures.

The President shall include in the budget submission

the proposed expenditure level of the Legislative and

Judicial Branches and of Constitutional bodies, which

shall have undergone the same process of evaluation and

which shall have been subject to the same budgetary

© Compiled by RGL

114 of 162