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Budget Process

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The Budget Process

1. Budget Preparation This covers estimation of government revenues, the determination of budgetary priorities and acitivites and the translation of approved priorities and activities into expenditure level.

The Budget Preparation begins with the issuance of a Budget Call by the Department of Budget and Management. The Budget Call outlines the priority areas of government activity applicable to the budget year.

The budget proposals shall be reviewed on the basis of their own merits and not on the basis of:
1. A given percentage or peso increase or decrease from a prior year's budhet level;
2. A given percentage of the aggregate budget level; or
3. A similar rule of thumb that is not based on specific justification.

The DBM summarizes the proposals and submits an analysis and recommendation to the President of the Philippines before finalization and submission to Congress.

2. Legislative Authorization

It is the second phase of the budget process relative to the enactment of the General Appropriation Bills based on the budget of receipts and expenditures submitted by the President within 30 days from the opening of its regular session.

The General Appropriation Bill presents the proposals of the President for new general appropriations in the coming year. The proposals are listed by agencies or lump sum fund and are detailed by budgetary function activities or projects. Each function is briefly described in "appropriation language".

Any conditions governing agency expenditures are presented as Special Provisions applicable to the agency. Whih also identify the amount intended for the most significant activities of the agency.

General Provisions are also provided in the Bill, representing the expenditures rules and conditions applicable to all agencies or group of agencies.

Budget Briefing is conducted

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