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The first step in the Philippine budgetary system budgeting process is the preparation of the budget

which involves the formulation of estimates of revenues and expenditures by the Executive Departments

and Agencies. In preparing the annual budget proposal, the said department maes an estimation of

government revenues. It then determines the budget priorities within available revenues and borrowing

limits. !inally, it translates these approved priorities into expenditures.The main agency involved is the Development "udget #oordination #ommittee $D"##% composed of the

following agencies&

a. The Department of "udget and 'anagement, the agency responsible for resource allocation and

management(

b. The Department of !inance, the agency responsible for resource generation and debt management(

c. The )ational Economic and Development Authority, the agency responsible for overall economic

activity(

d. The "ango*entral ng Pilipinas $#entral "an of the Philippines%, the agency responsible for monetary

measures and policies(

e. The +ffice of the President of the Philippines, the agency responsible for the approval and oversight of

the budget

In the preparation of the budget, the D"## approves the parameters, maes a budget call, conducts

budget hearings, maes a budget review then consolidates the budget. It then validates and confirms the

budget, which is finally approved by the President of the Philippines and his #abinet. The President

thereby submits the budget to #ongress for approval.

After the "udget has been prepared, the next step is "udget egislation-Authoriation. This pertains to

the whole range of legislative action on the budget, leading to the enactment of a /eneral Appropriations

aw for the year. The Philippine 0ouse of 1epresentatives first conducts hearings-debates on the

budget.

The 0ouse then approves the budget, for submission to the *enate of the Philippines. *enate hearings

and debates are conducted on the budget, which is finally approved. A "icameral #onference #ommittee

composed of representatives of the Philippine 0ouse of 1epresentatives and the *enate is convened.

After approval by the "icameral #onference #ommittee, the President enacts the budget which is nown

as the /eneral Appropriations Act.

After the proper authoriations through different formal processes have been made, the next step is

"udget Execution. "udget execution covers the allotment of appropriations by the central budget

authority to, and the incurrence of obligations by, the spending departments and agencies of

government. The steps in the execution of the budget are&

a. 1elease of the funds by the Department of "udget and 'anagement $D"'%

b. Implementation of the various programs and activities by the different government agencies

The final step of the Philippine "udgetary system involves "udget Accountability and 1eview. This

involves the reporting of actual performance against plans or targets, and it involves the following

process&

a. 'onitoring of agency budgetary performance

b. #omparison and evaluation of actual performance with the initially2approved wor targets

c. A summary list of checs issued is submitted on a monthly basis

d. Physical 3 !inancial 1eport of +perations is submitted on a 4uarterly basis in the form of a trial

balance