This starts with the Budget Call and ends with the President’s submission of the proposed budget to Congress.
- What is the Budget Call?
- What is Early Preparation?
- What is Stakeholder Engagement?
- What is “Bottom-Up” Budgeting?
- What are Technical Budget Hearings?
- What is the Executive Review?
- What is Consolidation, Validation, and Confirmation?
- What is a Presentation to President and Cabinet?
- What is the President’s Budget?
1. The Budget Call
At the beginning of the budget preparation year, the Department of Budget and Management (DBM) issues the National Budget Call to all agencies (including state universities and colleges) and a separate Corporate Budget Call to all GOCCs and GFIs.
The Budget Call contains budget parameters (including macroeconomic and fiscal targets and agency budget ceilings) as set beforehand by the Development Budget Coordination Committee (DBCC); and policy guidelines and procedures in the preparation and submission of agency budget proposals.
2. Stakeholder Engagement
A new feature in budget preparations which seeks to increase citizen participation in the budget process, departments and agencies are tasked to partner with civil society organizations (CSOs) and other citizen-stakeholders as they prepare their agency budget proposals. This new process, which was piloted in the preparation of the 2012 National Budget, is now being expanded towards institutionalization.
Departments and GOCCs Mandated to Conduct CSO Consultations
|ORIGINAL SET (Piloted in 2012)||NEW SET (Starting 2013)|
|Department of Health
Department of Education
Department of Social Welfare and Development
Department of Public Works and Highways
Department of Agriculture
Department of Agrarian Reform
National Food Authority
National Housing Authority
National Home Mortgage and Finance Corp.
|Department of Tourism
Department of Transportation and Communication
Department of Interior and Local Government
Department of Justice
Department of Labor and Employment
Department of Environment and Natural Resources
Light Rail Transit Authority
National Electrification Administration
National Irrigation Administration
Note: All other departments and agencies are highly encouraged to undertake the process.
3. Technical Budget Hearings
These are conducted after departments and agencies submit their Agency Budget Proposals to the DBM. Here, agencies defend their proposed budgets before a technical panel of DBM, based on performance indicators on output targets and absorptive capacity. DBM bureaus then review the agency proposals and prepare recommendations.
4. Executive Review
The recommendations are presented before an Executive Review Board which is composed of the DBM Secretary and senior officials. Deliberations here entail a careful prioritization of programs and corresponding support, vis-à-vis the priority agenda of the national government. Implementation issues are also discussed and resolved.
5. Consolidation, Validation and Confirmation
DBM then consolidates the recommended agency budgets and recommendations into a National Expenditure Program and a Budget of Expenditures and Sources of Financing (BESF). As part of the consolidating process, the deliberations by the DBCC will determine the agency and sectoral allocation of the approved total expenditure ceiling, in line with the macroeconomic and fiscal program. Heads of major departments are invited to this meeting.
6. Presentation to President and Cabinet
The proposed budget is presented by DBM, together with the DBCC, to the President and Cabinet for further refinements or reprioritization. After the President and Cabinet approve the proposed National Expenditure Plan, the DBM prepares and finalizes the budget documents to be submitted to Congress.
7. The President’s Budget
The budget preparation phase ends with the submission of the proposed national budget—the “President’s Budget”—to Congress. The President’s Budget consists of the following documents, which help legislators analyze the contents of the proposed budget:
- President’s Budget Message (PBM)
This is where the President explains the policy framework and priorities in the budget.
- Budget of Expenditures and Sources of Financing (BESF)
Mandated by the Constitution, this contains the macroeconomic assumptions, public sector context (including overviews of LGU and GOCC financial positions), breakdown of the expenditures and funding sources for the fiscal year and the two previous years.
- National Expenditure Program (NEP)
This contains the details of spending for each department and agency by program, activity or project, and is submitted in the form of a proposed General Appropriations Act.
- Details of Selected Programs and Projects
This contains a more detailed disaggregation of key programs, projects and activities in the NEP, especially those in line with the national government’s development plan.
- Staffing Summary
This contains a summary of the staffing complement of each department and agency, including number of positions and amounts allocated for the same.