DBM Budgeting and Management Reforms EO

Objectives for Budgetary Reform

Priority to improve public expenditure management through:
- A three-year planning framework prioritizing agency programs and strategies.
- Devolution of budget utilization authority to agency heads.
- Implementing a performance evaluation and monitoring system across agencies.

Budget Execution and Accountability Tracking (B.E.A.T.) System

Introduction of a fully computerized budgeting system.
Computerizes budget execution and accountability phases.
Streamlines budget release procedures for timely funds delivery.

Organizational and Operational Realignment in DBM

Refocuses functions of DBM units and operational strategies.
Aims to make organizational setup responsive to budget reform requirements.

Legal Basis for Reorganization

Executive Order No. 292 (Administrative Code of 1987) empowers the President with organizational authority.
Republic Act No. 8745 grants authority to change key positions and organization structure.
RA 8745 also mandates phasing out unnecessary activities to generate savings for augmentation.

Functional Focus in Budget Management (Section 1)

Shift from cost-based to performance-based expenditure management.
Key strategic priorities:
a. Adoption of Medium-Term Expenditure Framework covering budget year and subsequent years for predictability.
b. Enhanced efficiency through agency budget utilization autonomy and performance incentives.
c. Development of a performance monitoring and evaluation system linked to resource allocation.

Organizational and Operational Adjustments in DBM (Section 2)

Secretary of DBM to review and adjust operational processes and structure.
Considerations include:
1. Conducting policy research and standard setting on budgeting and management.
2. Integration of related activities into policy & management services, budget operations, and support services.
3. Strengthening budget unit functions from fund releasing to performance assessment and monitoring.
4. Delegation of more responsibilities to Regional Offices.
5. Enhancing coordination and monitoring between Central and Regional Offices.
Secretary authorized to make further adjustments for efficiency and effectiveness.

Redeployment of Personnel (Section 3)

Personnel redeployment to fit revised structure.
Redeployment must comply with civil service rules.
No reduction in rank or compensation allowed for affected personnel.

Funding for Organizational Changes (Section 4)

Funding sourced from existing DBM resources.
No additional funds for Personal Services allowed due to reorganization.

Effectivity (Section 5)

Order takes effect immediately upon issuance.

The comprehensive provisions reflect a government initiative to enhance the budgeting system by institutionalizing performance-based management, adopting multi-year expenditure planning, empowering agencies with budget flexibility, and aligning DBM's structure and operations to these reforms.