My very last budget 101 presentation at the Philippine Department of Budget and Management.

1. FRANCIS Y. CAPISTRANO
Acting Director IV
Knowledge Management and Fiscal Transparency Service
Department of Budget and Management
1
The National Budget

2. 2
Mandate
The DBM, created under Executive
Order No. 25 dated April 25, 1936, is
mandated under this Order and by
subsequent issuances to promote the
sound, efficient and effective
management and utilization of
government resources (i.e.,
technological, manpower, physical and
financial) as instrument in the
achievement of national
socioeconomic & political
development goals.

3. The National Budget:
The financial translation of
approved government plans,
programs & projects for the
fiscal year.
Consists of government’s
estimated income and planned
expenditures.
A tool to enable government to
achieve its development agenda
& committed performance.
3

4. The Budget and the Economy
4

5. The National Budget
5
2016 APPROPRIATIONS (In Billion Pesos)
New Appropriations-
2016 GAA
Automatic
Appropriations
Programmed
Appropriations (Total)
Add: Unprogrammed Funds
3,001.8
930.7
2,071.1
67.5

6. 6
The 2016 Budget by Expense Class
Bigger Infra & Program Delivery Budgets
PARTICULARS (In Billions) 2015 Adjusted % Distribution
CURRENT OPERATING EXPENDITURES 1,911.44 69.66
Personnel Services 745.96 27.01
Maintenance and Other Operating Expenses 463.33 17.14
Financial Expenses 1.68 0.06
Allotment to LGUs (IRA) 311.89 11.42
Subsidy 15.72 0.91
Interest Payments 372.86 13.09
CAPITAL OUTLAYS 668.06 29.46
Infrastructure 641.79 27.23
Special Shares to LGUs 25.23 1.2
Equity 1.04 1.03
NET LENDING 26.5 0.88

7. 7
The Budget for Key Sectors, 2006-2016
(% of Total Budget)

9. Elements of Good Budgeting:
Spending within means
Spending on the right priorities
Spending with measurable results
In an empowering regime of
transparency, accountability
& citizen’s engagement
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10. 10
Budget Preparation

11. 11
Improving Revenue Collection
Spending Within Our Means
(YEAR-ON-YEAR GROWTH)

12. 12
Spending Within Our Means
FISCAL DEFICIT AS % OF
GDP
Source: Fiscal Statistics Handbook (2000-2013)
Budget Priorities Framework 2014-2018
Deficit at 2%
of GDP in
2015-2018

13. • Overhead expenditures
contained through hard
budget ceilings
• Agencies’ absorptive capacity
considered in the setting of
budget ceilings
• Aligned w/ Budget
Priorities Framework
• Implementation-ready
proposals prioritized
• Agencies can absorb
additional funds
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Spending Within Our Means
Two-Tier Budgeting Approach
TIER 1:
OVERHEAD + ONGOING
PROGRAMS
TIER 2:
NEW/EXPANDED PROGRAMS
2016 Fiscal Space
= P580 billion

14. Investing in the
Right Priorities
FOCUS GEOGRAPHIC AREAS
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The 2016 Budget Priorities Framework

15. Budget Legislation
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16. Budget Execution
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17. 17
45

18. 18
Budget Accountability

19. 19

20. 20
The Transparency Seal
Transparency
Seal
 Agency functions and mandates
 Contact information of key officials and
their positions
 Physical and Financial Accountability
Reports
 Approved Budget and Targets
 Major Programs under the Key Results
Areas
 Project and Program Beneficiaries
 Status of the implementation of projects
 Annual procurement plan and list of
awarded projects

21. FRANCIS Y. CAPISTRANO
Acting Director IV
Knowledge Management and Fiscal Transparency Service
Department of Budget and Management
21
The National Budget