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Local Budget Process

This document discusses the budget process in local government units in the Philippines. It covers the five phases of budgeting: budget preparation from July 15 to October 15, budget authorization from submission to the local legislature until approval, budget review by oversight agencies, budget execution involving fund releases and spending, and budget accountability through financial reporting and performance evaluation. Key aspects like participatory budgeting, legal bases, and benefits are also summarized.

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Rona Lyn Marin
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637 views

Local Budget Process

This document discusses the budget process in local government units in the Philippines. It covers the five phases of budgeting: budget preparation from July 15 to October 15, budget authorization from submission to the local legislature until approval, budget review by oversight agencies, budget execution involving fund releases and spending, and budget accountability through financial reporting and performance evaluation. Key aspects like participatory budgeting, legal bases, and benefits are also summarized.

Uploaded by

Rona Lyn Marin
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BUDGET PROCESS

IN LOCAL
GOVERNMENT
UNITS
RONA LYN MARIN
BUDGETING
FRAMEWORK
FOR THE LGUS
PARTICIPATORY BUDGETING
is an approach wherein citizens, through CSOs, are
allowed to take part in the process of allocating
public resources. It offers citizens the opportunity
to contribute in the formulation of options and in
making choices that will affect how their
government acts. Since participatory budgeting
helps promote transparency, it has the potential of
reducing government inefficiencies and corruption.
LEGAL BASES
Section 23, Article II, 1987 Philippine
Constitution.
Section 3[l], Republic Act [RA] No. 7160
Section 34, RA No. 7160
BENEFITS

 Helps the LGU


maximize the  Develops trust
use of in Government
resources

 Ensures continuity  Reduces delay in


and sustainability of the implementation
plans and budgets of urgent projects
POLICY-BASED BUDGETING
means that the budget is prepared with due regard
to local government policy, which, in turn, should
be harmonized with the development plans and
reflected in the investment programs that the
LGUs are required to prepare pursuant to RA No.
7160
LEGAL BASES
Section 106, 109 RA No. 7160
Section 305 [h], RA No. 7160, Section 305 [i], RA No.
7160
Article 410, Implementing Rules and
Regulations [IRR], RA No. 7160
PERFORMANCE INFORMED
BUDGETING (PIB)
PIB is the new budgeting approach that uses
performance information in appropriation
documents to link funding to results and to provide
a framework for more informed resource allocation
and management.
LEGAL BASES
Budgets of LGUs shall include a brief
description of the functions, projects and
activities for the ensuing fiscal year, expected
results for each function, project and activity,
and the nature of work to be performed,
including the objects of expenditure for each
function, project and activity (Section 317 [b]
[3], RA No. 7160)
5 PHASES
BUDGET
PREPARATION
- JULY 15 to OCTOBER 15 of
the current year
- TRANSMITTED to the Local
Sanggunian not later than
October 16
LEGAL BASES
Upon receipt of the statements of income and
expenditures from the treasurer, the budget
proposals of the heads of departments and offices
and the estimates of income and budgetary ceilings
from the local finance committee, the local chief
executive shall prepare the executive budget for the
ensuing year in accordance with the provisions of
[Title V, Book II of RA No. 7160] (Section 318, RA
No. 7160).
STEPS IN THE BUDGET PREPARATION PHASE

01 ISSUE THE BUDGET CALL


is a directive from the LCE specifying the objectives,
policy decisions strategies, financing requirements
and prioritized PPAs by sector/office as reflected in the
AIP. It provides clear guidelines in the preparation of
individual budget proposals.
PREPARE AND SUBMIT
BUDGET PROPOSALS
02
Each Department Head prepares the budget
proposals and submits these to the LBO for
review and consolidation.
STEPS IN THE BUDGET PREPARATION PHASE

03 CONDUCT BUDGET HEARING

The technical budget hearing are conducted by


the LFC to validate the revenue sources, PPAs,
cost estimates and expected outputs for the
budget year

PREPARE LEP/ EXECUTIVE


04 BUDGET

Shall primarily consist of 2 parts


- Estimates of receipts
- The proposed appropriations for the
budget year
STEPS IN THE BUDGET PREPARATION PHASE

05 PREPARE THE BUDGET MESSAGE

Is a summary of the proposed executive


budget prepared by the LCE.

06 SUBMIT LEP
Submit the LEP with:
- Budget message
- Plantilla of Personnel
- Statement of Indebtedness
- Annual Operating Budget of Local Economic
Enterprise
BUDGET
AUTHORIZATIO
N
BUDGET AUTHORIZATION
PHASE
Starts from the time the Sanggunian receives the
executive budget submitted by the Local Chief
Executive (on or before October 16 of the current
fiscal year ) and ends with the enactment of the
appropriation Ordinance and approval thereof by the
LCE.
STEPS IN THE BUDGET AUTHORIZATION PHAS

ENACT THE APPROPRIATION ORDINANCE


01
On or before the end of the current fiscal year, the
Sanggunian concerned shall enact, through an ordinance,
the annual budget of the local government unit for the
ensuing fiscal year on the basis of the estimates of income
and expenditures submitted by the local chief executive

APPROVE THE APPROPRIATION


02 ORDINANCE
The Appropriation Ordinance enacted by the Sanggunian
shall be presented to the LCE for approval, in which case,
he shall affix his signature on every page thereof.
Otherwise, he shall veto it and return the same with his
objections to the Sanggunian, which may proceed to
STEPS IN THE BUDGET AUTHORIZATION PHAS

POST THE APPROPRIATION ORDINANCE


03
The secretary to the sanggunian concerned shall cause the
posting of an ordinance or resolution in the bulletin board at
the entrance of the provincial capitol and the city, municipal,
or barangay hall in at least two (2) conspicuous places in the
local government unit concerned not later than five (5) days
after the approval thereof. (Section 59 (b), RA No. 7160)

04
FORWARD TO THE REVIEWING
AUTHORITY
Within three (3) days after the Approval
BUDGET
REVIEW
BUDGET REVIEW PHASE
Starts from the time the reviewing authority receives
the Appropriation Ordinance for review and ends with
the issuance of the review action.
Its primary purpose is to determine whether the
ordinance has complied with the budgetary
requirement and general limitations set forth in the
Local Government Code of 1991 as well as provisions
of other applicable laws.
LEGAL BASES
The Department of Budget and Management
shall review ordinances authorizing the
annual or supplemental appropriations of
provinces, highly-urbanized cities,
independent component cities, and
municipalities within the Metropolitan Manila
Area in accordance with Section 327 of RA
No. 7160 (Section 326 of RA No. 7160).
STEPS IN THE BUDGET REVIEW PHASE

CHECK THE APPROPRIATION


01 ORDINANCE WITH THE APPENDED
BUDGET DOCUMENTS

02 REVIEW THE
APPROPRIATION
ORDINANCE

03 ISSUE THE REVIEW ACTION


BUDGET
EXECUTION
BUDGET EXECUTION
It involves the release of
1. allotments and certification of available
appropriations and cash;
2. the recording of actual obligations and
disbursement of funds for authorized PPAs to produce
goods and services that will benefit the general
public.
BUDGET EXECUTION
A critical aspect is the collection of funds, such
that disbursements do not exceed appropriations.

While seemingly a separate activity, the collection


and/or receipt of revenues are considered an
integral part of budget execution.
BUDGET
ACCOUNTABILIT
Y
BUDGET ACCOUNTABILITY
Involves the accurate recording and reporting
of LGUs income and expenditures and the
evaluation of LGU’s physical and financial
performance.
STEPS IN THE BUDGET ACCOUNTABILITY PHAS

01 MONITOR RECEIPTS AND


EXPENDITURES

02 SUBMIT ACCOUNTABILITY
REPORTS

03 EVALUATE PERFORMANCE OF
EACH DEPARTMENT/OFFICE
Thanks!

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