Definitions of Key Terms
- "Budget": The constitutionally required national budget.
- "Government": National government, its corporations, subsidiaries, and local governments.
- "Department and Agency": Broadly defined to include various government bodies and institutions.
- "Current Operating Expenditures": Appropriations for goods/services consumed within the fiscal year, including furniture, equipment, temporary construction.
- "Capital Outlays/Expenditures": For long-term assets exceeding fiscal year life expectancy, including investments in government corporations.
- "Expected Results": Public services, products, or benefits and their estimated unit costs.
- "Government-Owned or Controlled Corporations": State-created corporations wholly or majority owned by the government.
Functions and Powers of the Budget Commission
- Prepare budget and appropriations proposals under presidential policies.
- Assemble, revise, and harmonize budget requests into coherent programs and fiscal policy.
- Supervise financial and management staff of agencies, providing technical and consultative services.
- Study agencies for improving economy and efficiency, covering organization, appropriations, activity assignments, service grouping, and cost-benefit analysis.
- Develop and enforce budget reporting systems including forms and submission procedures.
- Conduct training programs for government personnel on budgeting, organization, compensation, evaluation, and related fields.
Form and Content of the Budget
- Two parts: (1) Current operating expenditures, and (2) Capital outlays.
- Budget includes necessary funds for programs, projects, or activities of government departments and agencies.
- Appendices include General Appropriations Act, Public Works Act, and other relevant appropriation acts.
- Budget may include:
- Message highlighting significance of appropriations.
- Summary of government functions and activities.
- Summary financial statements covering expenditures, appropriations, receipts, treasury condition, debts, and other relevant financial data.
- Regional, sectoral, local government, and government corporation allocations.
Submission and Content of Budget Estimates
- Submitted by heads of departments/agencies according to calendar and regulations.
- Must include:
- Major functions, activities, programs, showing work/services and cost elements.
- Current operating expenditures & capital outlays.
- Regional identification per government policies.
- Financing sources including revenues, borrowings, donations.
- Contingent liabilities including government guarantees.
- Description of programs’ nature, significance, scope, and major thrusts.
Cash Budget System
- Operational cash budget to ensure cash availability for priority projects.
- Supports rationale for public borrowing’s level, type, timing.
- Procedures approved by the President based on Finance Secretary, Budget Commissioner, and Commission on Audit recommendations.
Reversion of Unexpended Appropriations
- Unexpended annual appropriations revert to unappropriated general fund after fiscal year.
- Continuing appropriations subject to review and possible reversion upon President’s approval.
Budget Monitoring and Information System
- Commission identifies financial and other information for monitoring budget performance and effectiveness of agencies.
- Prescribes forms, submission schedules, recordkeeping.
- Commission on Audit coordinates issuance of related regulations, enforced within 30 days after Budget Commission's prescriptions.
Restrictions on Salary Increases and Use of Appropriations
- Salary adjustments require specific legal or circular authorization.
- Positions must be classified before payment of salaries except as provided by Compensation and Position Classification Plans.
- Savings in executive department appropriations may be used for:
- Personal services: claims for death/injury in line of duty, commute terminal leaves, enhanced retirement/separation pay due to reorganization, payment for reinstated employees, cash awards, salary adjustments.
- Authorized projects: foreign-assisted projects, priority economic activities, disaster relief, government building repairs, official celebrations.
- Legal obligations: final court judgments, valid prior year obligations.
- Savings may cover deficits within same department excluding new positions or salary increases, with corresponding transfers of appropriations.
- President may suspend or stop expenditures with exceptions, and allow transfers within departments with salary appropriations deemed transferred accordingly.
- Savings can be used for payment of salary differentials of substitute employees with proper authorization.
- Appropriations for reorganized agencies considered available post-reorganization with budget commissioner adjustment authority.
- Cost reduction programs mandatory with reports; incentives may be granted for effective cost-saving suggestions.
- Failure to submit required reports by officials results in salary suspension and disciplinary actions.
- Government motor vehicle use governed by presidential rules.
- Fees may be charged by Budget Commission for technical services beyond normal scope.
Repealing Clause and Effectivity
- Conflicting laws, rules, and regulations repealed.
- Decree takes effect immediately upon promulgation.