Question & AnswerQ&A (PRESIDENTIAL DECREE No. 999)
The declared policy is that the National Budget shall be formulated as an instrument of national development, aimed at achieving explicit objectives and expected results, ensuring effective, economical, and efficient use of funds. The budget shall reflect all revenues, expenditures, borrowings, and donations of all government levels including government-owned or controlled corporations and local governments, and provide for the regionalization of government operations.
The term "Budget" means the budget required by Section Sixteen (16), Article VIII of the Constitution, and which is referred to in Section Seven of this Act.
"Government" means the National Government, including government-owned or controlled corporations and their subsidiaries, and local governments.
The Budget consists of two parts: (1) current operating expenditures, and (2) capital outlays.
Current operating expenditures refer to appropriations spent for goods and services for current consumption or within the fiscal year, including acquisition of furniture and equipment usually used in normal government operations, and temporary construction used for promotional and research purposes.
They include preparing the Budget and appropriation proposals, exercising functional supervision over financial and management staffs of agencies, studying departments and agencies to secure greater economy and efficiency, developing a reporting system to monitor fund releases, and conducting training programs for government personnel.
It establishes that an operational cash budget shall be followed to ensure the availability of cash resources for priority development projects and to provide a better rationale for public borrowing, according to approved procedures.
Unexpended balances of annual appropriations revert to the unappropriated general fund in the National Treasury at the end of the fiscal year and shall not be available for expenditure except by subsequent legislative enactment.
Failure to submit required reports such as trial balances, work and financial plans, and other necessary reports will result in automatic suspension of salary payments until compliance, and no appropriation shall be available to pay such salaries additionally to any disciplinary action.
Appropriations may be used for salary adjustments only if specifically authorized by law or appropriate budget circular, and only if the positions have been classified by the Office of Compensation and Position Classification.