Government budgeting is the critical exercising of apportioning grosss and borrowed financess to achieve the economic and societal ends of the state. It besides entails the direction of authorities outgos in such a manner that will make the most economic impact from the production and bringing of goods and services while back uping a healthy financial place.

GOVERNMENT BUDGET

In general. a authorities budget is the fiscal program of a authorities for a given period. normally for a financial twelvemonth. which shows what its resources are. and how they will be generated and used over the financial period. The budget is the government’s cardinal instrument for advancing its socio-economic aims.

Budgeting attacks or manners and techniques used in the Filipino authorities are characterized into three major orientations: * Control-orientation in budgeting is the procedure of implementing or using restrictions and conditions that are set in the budget * Management-oriented budgeting involves the usage of budgetary authorization at both bureau degrees to guarantee the efficient usage of resources * Planning-orientation in budgeting is the procedure of finding public aims and the rating of alternate plans.

FOUR ( 4 ) BUDGETING METHODS

1. Line-Item Budgeting

The line-item budgeting attack emphasizes listing of objects for itemized outgo such as forces. supplies. and equipment without much respect for the intent of plans or undertakings for which such points are proposed. It besides controls outgos at the section or bureau degree giving accent on the accounting facet of the authorities operations in footings of points bought or paid.

2. Performance Budgeting

In public presentation budgeting. objects of outgos are grouped into classs related to the specific services or merchandises an establishment produces. as against objects it purchases. and the development of merchandise cost measurings of activities or services so that directors can mensurate the efficiency or productiveness of disbursement bureaus.

3. Planing. Programing and Budgeting System

PPBS is an reply to the demand for an economic allotment of resources and the project of authorities policy. plan analysis. and cost public-service corporation analysis to better the policy determination procedure of authorities. The strategy requires bureau directors to place plan aims. develop mensurating plan end product. calculate entire plan costs over the long-term. fix elaborate multi-year plan and fiscal programs. and analyze the costs and benefits of alternate plan designs. The system provides a strong linkage between planning and budgeting. 4. Zero-Based Budgeting

ZBB is an operating. planning. and budgeting method which requires every bureau director to warrant his full budget systems in item and transfers the load of cogent evidence to each director why he should pass any money. It underscores the analysis of all budgetary outgos to reply effectivity in accomplishing organisational ends. The term “zero-based” refers to the annual analysis. rating. and justification of each program/project/activity get downing signifier zero public presentation degree.

BUDGET CYCLE ( FOUR PHASES )

1. Budget Preparation

This involves the preparation or devisement of a national budget based on budgetary precedences and activities given available grosss and borrowing bounds.

The Development Budget Coordination Committee ( DBCC ) . an interagency organic structure. behaviors audiences and surveies on financial and fiscal issues with the aim of finding overall outgo degrees. gross projection. shortage degrees. and the funding program. These are so forwarded to the cabinet and the President for blessing. After blessing by the President. the Department of Budget and Management ( DBM ) issues a Budget Call. The call normally issued in November directs the different bureaus to fix their several budget proposals in conformity with sanctioned budget ceilings.

2. Budget Mandate or Legislation

In this stage of the budget rhythm. the budget is reviewed by the House of Representatives and followed by the Senate through audience and justification by section and bureau caputs of their budget proposals. Conflicting commissariats are worked out and harmonized by a conference commission. Once a common budget measure has been approved by both Chamberss. it is submitted to the President for blessing. The merchandise of the President’s blessing of the proposed budget statute law is the General Appropriations Act ( GAA ) .

3. Budget Execution

This stage of budget rhythm is the execution of the General Appropriations Act. The Department of Budget and Management ( DBM ) implements the national budget through the administrative supervising of the President. The Bureau of Treasury of the Department of Finance ( DOF ) coordinates with the DBM so that hard currency releases by the latter are based on collected grosss by DOF.

4. Budget Accountability

Budget answerability is the analysis and reappraisal of the bureau runing public presentation. systems and processs. and the rating of bureau achievements relative to be incurred. It compares existent outgos and public presentation with the planned outgos and preset marks of the organisation.

While clearly separate. these procedures overlap in the execution during a budget twelvemonth. Budget readying for the following budget twelvemonth returns while authorities bureaus are put to deathing the budget for the current twelvemonth and at the same clip engaged in budget answerability and reappraisal of the past year’s budget.