I. THE PHILIPPINE BUDGET SYSTEM Annual Budgeting System The Philippine budget is a typically annual budget prepared by the Executive branch under the guidance of the Department of Budget and Management (DBM) and authorized by the Philippine Congress in the form of a General Appropriations Act (GAA). It outlines all appropriations for the period of one year and compares it with the appropriations of the previous fiscal year. Performance-Informed Budgeting Starting fiscal year 2014, the Philippine Government, through the DBM, adopted a new approach to budgeting – the Performance-informed budgeting (PIB). Under the PIB approach, the appropriation document presents the performance information, which provides the context for the programs, activities and projects of the different government agencies. Special Purpose Fund A big bulk of the appropriations in the …show more content…
It does not provide a mechanism for governments to control their budgets and expenditures beyond the one-year period. Thus, the annual budgeting system is shortsighted in that it lacks foresight and fails to consider what might happen to programs and projects in the future. It is also inflexible in that it is incapable of adjusting to the changing needs of a project or program. The Philippine budget is an annual budget and is thus shortsighted and inflexible. The shortsightedness, for instance, is exemplified in the failure of the Philippine budget to provide means of projecting and managing expenditure for long-term projects. In a number of instances, the Philippine government has approved the funding of new projects whose expenditure requirements for the first year were minimal but were later found to require huge outlays for completion. These projects are either entirely abandoned or postponed until further funds can be appropriated for it possibly in the following annual
The Australian Budget is an annually published document which details the Federal Government's plans to affect the level of economic activity, resource allocation, and income distribution through the use of fiscal policy. It describes the framework which the government intends to follow during the next financial year which will result in the attainment of their objectives. The budget is a publication of the government's plans regarding the use of fiscal policy, and is published to parliament and the general public on “budget night”, so as to allow open dissemination about the status of public finances and to promote transparency in Australia's fiscal policy.
The country needs to start monitoring how the government is spending the federal budget and they need to start splitting it fairly to benefit our country. 83% of the federal budget is spent on the Big Five which are the main expenses in the budget. We have to stop spending it all on the Big Five. Our government should really pay attention to what we need most of in this country and focus on the needs. The government needs to take away 20% of the Big Five and split it to categories that need it.
For government budgeting to be effective, the process that guides it must be an evolving one. As the government gets bigger, it will most likely destabilize the existing method. Therefore, it must change to keep pace with the demands and growth of the country. The process must be capable of handling the complexity of our nation and its multifaceted needs so it will always need revisions and restructuring to face these new challenges. Its ultimate goal must be to reinforce the government and strengthen the country.
There is a five step process to create the budget annually to reflect the American people’s values in our democracy. The President submits the budget outline to Congress, then lawmakers release their budget resolution, the House and Senate set funding for governmental programs, once the House and Senate come to an agreement on the programs, the budget plan is returned to the President for his approval and signature. After all five steps, are completed the budget becomes law. The Department of Defense’s budget feeds the Defense Financial Guidance which then pays per Diem for travel, basic housing allowance, Tricare and basic pay to military. Additionally, the military workforce is affected based on spending for personnel
When considering the nature of the federal budget, indeed one can trace the foundations of budgeting back to biblical principles. Inside the community of faith, the bible has often been considered the cornerstone and reference point for authoritative declarations. Thus, when applying a biblical perspective to the nature and context of the federal budget, one must begin with the nature of property and stewardship within biblical context. As conveyed in the lecture notes, “God delegated to man the authority over external things, and hence, one could conclude stewardship and ownership from Genesis… God also has authority over all humanity, in the sense that we ‘are not our own,’ and what we own is not to be ‘privately’ administered in exclusion of God.” Therefore, when discussing the federal budget in correlation to the biblical text, indeed the allocation of resources, the distribution of wealth and the overall stewardship of believers are controlled by God. As scriptures states, “God blessed the and God said to them, “Be fruitful and multiply and fill the earth and subdue it, and have dominion over the fish of the sea and over the birds of the heavens and over every living thing that moves on the earth” (Genesis,1:28,ESV).
The department of Developmental Education is tasked each year with coming up with the following years budget and this year I was given that task. The Dean has given us a very hard task and that is that we have to cut 10% of our budget for next year. My task is to come up with five strategies that help in reducing our budget by 10% just for the following year, two of them will have to present a permanent change to our current budget and the ones to follow. This was a very tough decision, as many items have to be considered. I have given it a lot of thought and this is what I came up with, I will also explain which one of the strategies I think works best for our department and the institution.
The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred. The Budget Process Budgetary planning may differ between organizations. Single-period budgets and rolling budgets have methodologies that provide advantages and disadvantages that may make one budget time frame better than another. A single period may require less time in planning during a fiscal year, but is less accurate than a rolling budget that is continuously planned on a repetitive basis. In either case, budgets are planned in advance in order for a company to operate profitably, and less so to have "actual results equal budgeted results."
Participative budgeting has the advantage of transferring information from the subordinate to their superior This knowledge is likely to be more reliable and accurate as the subordinate has direct contact with the activity and therefore is in the best position to make budget estimates. Participative Budgeting also gives subordinates the opportunity to discuss organisational issues with superiors, in which an exchange of information and ideas can help to solve problems and agree future actions (Nouri & Parker 1998). This transferral of information is important particularly when dealing with a matter of high task difficulty as, the more difficult a task, the greater the need for consultation with subordinates. Participative budgeting has a higher performance rate when dealing with more difficult and more volatile tasks than non consultative budgeting (Lau & Tan 1998)
Quantitative plans are called budgets. Budgets are prepared to impose cost controls on the activities of an organization (Chenhall, 1986).Budgets are then used to evaluate the performance of the management and budget itself is considered as a standard to evaluate the performance Solomon, 1956). The purpose of the budget is also to implement the strategy of the organization and communicate it to the employees of the organization Rickards (2006). The change in the external environment has led to the change in the budgeting approaches from the initial cash based budgets to the zerio based budgets (Bovaird, 2007).
The federal government has a budget. This is called the Federal budget, and is made up of five important steps.It goes through a period called “fiscal year”. It begins October 1 and it ends September 30 of the next year.The budget can become very complex, just because of how many parties are are involved, and how big the budget is.This period can begin in any 12 months chosen for keeping accounts.
Performance budgeting encompasses the causal relationship among program funding and the probable results of that program and uses this information as a means to develop an actual budget. A major focal point of performance budgeting is accountability; this type of budgeting is often utilized by administrators to obtain cost efficiency and establish useful budget forecasting.
As time goes on, you will find that your original budget has some slaws. Some areas of budget planning might be overestimated, and some areas might be underestimated. Some of the flaws in budget making, for instance, are unemployment because if a person gets unemployed he has to have a strict budget to follow. For example making home food and not going out because that will result him in debt. Some of the other flaws are increase in rent, increase in car insurance because of accidents occurring, credit card payments, groceries, and eating out with friends. All of these flaws can cause a person to be more in debt and cau...
The Philippines has long been a country with a struggling economy. Ever since World War II, they have struggled to have a steady government and labor system. Independence did not bring any social changes to the country. The hacienda system still persists in the country, where large estates are farmed by sharecroppers. More the half the population are peasants and 20 percent of the population owns 60 percent of the land. Although the sharecropper is supposed to receive half of the harvest, most of the peasant's actual income goes to paying off debts to the landowner. Poverty and conflict strained the industrial growth of the country with many Presidents trying to fix the problems, but failing to do so. Factors that have faced the country are there is almost 9 percent unemployment, and the country suffers from the consequences of a balance of trade deficit. With the resources that the Philippines have, they are capable of pulling themselves out of the economical hole they are in and being up to par with their successful neighboring countries.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support
The Article discussed inflation in the Philippines this year, its effect to the economy and how the country handle it over time. The analysis looks into the macroeconomic issues that affects economics. It focuses on the main points about inflation. This will cover how inflation are being measured, the effects on demand and supply and analyse the relationship of inflation to the Philippine economy.