QuestionsQuestions (BOARD OF MARINE ENGINEER OFFICERS PRC Resolution NO. 12, S. OF 2000)
EO 95 aims to ensure effective operational processes and structural arrangements for budgeting and management functions of the DBM, particularly by shifting from cost-based to performance-based expenditure management, strengthening planning, monitoring, and improving budget execution and release.
They are: (a) adoption of a medium-term expenditure framework for multi-year predictability; (b) measures to enhance efficiency through more authority/flexibility to agencies and performance incentives; and (c) development and implementation of a performance monitoring and evaluation system tied to resource allocation.
It considers a level of expenditures not only for the budget year but for subsequent years, creating a more predictable planning environment.
It mentions granting more authority and flexibility to agencies in budget utilization and providing performance incentives.
The performance monitoring and evaluation system should be related to or used in connection with how resources are allocated.
The Secretary must review existing DBM operational processes, systems, and setup, and may determine appropriate mechanisms and strategies subject to staffing/organizational guidelines; the Secretary is further authorized to make operational/structural adjustments to achieve effectiveness and efficiency.
(1) Policy research/studies and standard-setting on budgeting and management; (2) integration of related/homogeneous activities into three functional categories (policy and management services, budget operations, internal administrative/support); (3) strengthening budget operations units from fund releasing/realignment to performance assessment/monitoring of budget utilization; (4) delegating more responsibilities to Regional Offices; and (5) strengthening coordination/integration and monitoring between Central Office and Regional Offices.
It shifts their function from mainly fund releasing/realignment to agency performance assessment and monitoring of budget utilization.
It requires strengthening the coordinative/integrative and monitoring activities between and among units in the Central Office and the Regional Offices.
Existing DBM personnel shall be redeployed according to the revised organization structure and staffing pattern and civil service rules; such redeployment must not result in diminution in rank and compensation.
From funds available in DBM, with the condition that organizational/staffing modifications must not entail additional funds for Personal Services.
EO 95 cites Section 20, Chapter 7, Title I, Book III of EO 292 (Administrative Code of 1987) and Section 77 of RA 8745 (FY 1999 General Appropriations Act), which allows the President to direct changes in organization and key positions.
It directs agencies to scale down, phase out, or abolish unnecessary activities; savings generated may be used to augment the concerned agency’s programs, projects, and activities.
B.E.A.T. stands for Budget Execution and Accountability Tracking System. EO 95 mentions it as DBM’s effort to fully computerize budget execution and accountability phases and streamline budget release procedures for prompt provision of funds to agencies.
It takes effect immediately, as stated in Section 5.
It means budgeting and resource allocation should be guided by performance outcomes and monitored/assessed through a performance evaluation system linked to resource allocation, rather than merely focusing on costs.