Sec. 22. The President shall submit to the Congress, within thirty days from the opening of every regular session as the basis of the general appropriations bill, a budget of expenditures and sources of financing, including receipts from existing and proposed revenue measures. (Art. VII, 1987 Constitution)

Why is the budgetary power entrusted to the executive department?

This power is properly entrusted to the executive department, as it is the President who, as chief administrator and enforcer of laws, is in best position to determine the needs of the government and propose the corresponding appropriations therefor on the basis of existing or expected sources of revenue. [Cruz, Philippine Political Law, p. 224 (1995 ed)]


What are the 4 phases of government budgeting process?

The Government budgetary process has been graphically described to consist of four major phases:

1. Budget preparation. –– The first step is essentially tasked upon the Executive Branch and covers the estimation of government revenues, the determination of budgetary priorities and activities within the constraints imposed by available revenues and by borrowing limits, and the translation of desired priorities and activities into expenditure levels.

Budget preparation starts with the budget call issued by the Department of Budget and Management. Each agency is required to submit agency budget estimates in line with the requirements consistent with the general ceilings set by the Development Budget Coordinating Council (DBCC).

With regard to debt servicing, the DBCC staff, based on the macro-economic projections of interest rates (e.g. LIBOR rate) and estimated sources of domestic and foreign financing, estimates debt service levels. Upon issuance of budget call, the Bureau of Treasury computes for the interest and principal payments for the year for all direct national government borrowings and other liabilities assumed by the same.

2. Legislative authorization. –– At this stage, Congress enters the picture and deliberates or acts on the budget proposals of the President, and Congress in the exercise of its own judgment and wisdom formulates an appropriation act precisely following the process established by the Constitution, which specifies that no money may be paid from the Treasury except in accordance with an appropriation made by law.

Debt service is not included in the General Appropriation Act, since authorization therefor already exists under RA No. 4860 and 245, as amended and PD 1967. Precisely in the fight of this subsisting authorization as embodied in said Republic Acts and PD for debt service, Congress does not concern itself with details for implementation by the Executive, but largely with annual levels and approval thereof upon due deliberations as part of the whole obligation program for the year. Upon such approval, Congress has spoken and cannot be said to have delegated its wisdom to the Executive, on whose part lies the implementation or execution of the legislative wisdom.

3. Budget Execution.  –– Tasked on the Executive, the third phase of the budget process covers the various operational aspects of budgeting. The establishment of obligation authority ceilings, the evaluation of work and financial plans for individual activities, the continuing review of government fiscal position, the regulation of funds releases, the implementation of cash payment schedules, and other related activities comprise this phase of the budget cycle.

Release from the debt service fired is triggered by a request of the Bureau of the Treasury for allotments from the Department of Budget and Management, one quarter in advance of payment schedule, to ensure prompt payments. The Bureau of Treasury, upon receiving official billings from the creditors, remits payments to creditors through the Central Bank or to the Sinking Fund established for government security issues.

4. Budget accountability. –– The fourth phase refers to the evaluation of actual performance and initially approved work targets, obligations incurred, personnel hired and work accomplished are compared with the targets set at the time the agency budgets were approved. (Guingona vs. Carague, G.R. No. 94571, April 22, 1991)