The first step in the Philippine budgetary system budgeting process is the preparation of the budget

which involves the formulation of estimates of revenues and expenditures by the Executive Departments
and Agencies. In preparing the annual budget proposal, the said department makes an estimation of
government revenues. It then determines the budget priorities within available revenues and borrowing
limits. Finally, it translates these approved priorities into expenditures.
The main agency involved is the Development Budget Coordination Committee (DBCC) composed of the
following agencies:
a. The Department of Budget and Management, the agency responsible for resource allocation and
management;
b. The Department of Finance, the agency responsible for resource generation and debt management;
c. The National Economic and Development Authority, the agency responsible for overall economic
activity;
d. The BangkoSentral ng Pilipinas (Central Bank of the Philippines), the agency responsible for monetary
measures and policies;
e. The Office of the President of the Philippines, the agency responsible for the approval and oversight of
the budget
In the preparation of the budget, the DBCC approves the parameters, makes a budget call, conducts
budget hearings, makes a budget review then consolidates the budget. It then validates and confirms the
budget, which is finally approved by the President of the Philippines and his Cabinet. The President
thereby submits the budget to Congress for approval.
After the Budget has been prepared, the next step is Budget Legislation/Authorization. This pertains to
the whole range of legislative action on the budget, leading to the enactment of a General Appropriations
Law for the year. The Philippine House of Representatives first conducts hearings/debates on the
budget.
The House then approves the budget, for submission to the Senate of the Philippines. Senate hearings
and debates are conducted on the budget, which is finally approved. A Bicameral Conference Committee
composed of representatives of the Philippine House of Representatives and the Senate is convened.
After approval by the Bicameral Conference Committee, the President enacts the budget which is known
as the General Appropriations Act.
After the proper authorizations through different formal processes have been made, the next step is
Budget Execution. Budget execution covers the allotment of appropriations by the central budget
authority to, and the incurrence of obligations by, the spending departments and agencies of
government. The steps in the execution of the budget are:
a. Release of the funds by the Department of Budget and Management (DBM)
b. Implementation of the various programs and activities by the different government agencies
The final step of the Philippine Budgetary system involves Budget Accountability and Review. This
involves the reporting of actual performance against plans or targets, and it involves the following
process:
a. Monitoring of agency budgetary performance
b. Comparison and evaluation of actual performance with the initially-approved work targets
c. A summary list of checks issued is submitted on a monthly basis
d. Physical & Financial Report of Operations is submitted on a quarterly basis in the form of a trial
balance