THE PHILIPPINE FISCAL

INSTITUTIONS

RONALD RAY K. SAN JUANInternational Finance GroupDepartment of Finance, Philippines

Sources: DBM, DOF

COUNTRY PROFILE

Population: 106,903,473 Est.

Government: Unitary Presidential

Constitutional Republic

Capital: Manila

Area: 301,780 sq. km.

Geographic Location: Southeast

Asia

COUNTRY PROFILE

GDP*Q1 2019; current USD billion

354.31

GDP per capita*Q1 2019; current USD thousand

3.25

GDP growth rate*Q1 2019

6.6

Inflation rate*Q1 2019

3.8

HDI (2017)** 0.699

Sources: *International Monetary Fund DataMapper, www.imf.org**UNDP, 2018

Economic Indicators

COUNTRY PROFILE

Revenue and Expenditure Performance

PH FISCAL INSTITUTIONS

Formulates/Implements Fiscal Policies & Programs

Development Budget Coordinating Council (DBCC)

Congress Commission

on Audit (COA)

Budget Cycle

Vis-à-vis Roles of Fiscal Institutions

Budget

Preparation

Budget

Accountability

Budget

Execution

Budget

Legislation

DBCCAn interagency body which reviews and approves revenue projections, borrowing

level, aggregate budge level and expenditure priorities. The committee also

recommends to the Cabinet and the President the consolidated public sector

financial position and the national government fiscal program.

DBM

Resource

allocation and

management

DOF

Revenue

generation &

debt

management

NEDA

Overall macro-

economic policy

OP

Presidential

oversight

BSP*

Monetary policy

*Resource institution

Membership

DBCC-Executive Technical Board

Assessment and

projection of key

macroeconomic

assumptions

MacroeconomyCash Programming

& Monitoring

Assessment and

formulation of fiscal

and financing

program

Contingent

Liabilities

Monitoring and

management of CL

Program Loans

Recommendation of

program loan

availment

DBCCAn end-to-end participation

Budget Priorities Framework• Approval of Macroeconomic Assumptions

• Approval of Medium-Term Fiscal and Financing

Program, including annual expenditure ceiling

• Recommendation of priority sectors

Presentation to the Cabinet/President• Presentation of the Proposed National Budget

Pre

para

tio

n

Publication of Budget Documents• Review of Macroeconomic Assumptions for publication in

the BESF

• Review of Medium-Term Fiscal and Financing Program for

publication in the BESF

• Approval of Fiscal Risks Statement

Leg

isla

tio

n

Presentation to the Congress• DBCC Briefing on the Proposed National Budget

DBCCAn end-to-end participation

Quarterly Fiscal Program and Availment of

Program Loans• Approval of the Quarterly Fiscal Program

• Approval of Program Loans

Exe

cuti

on

Acc

ou

nta

bilit

y

Accountability Reports• Publication of Mid-Year and Year-End Reports

Budget Preparation

Approves budget parameters

(DBCC)Budget Call

(DBM)

Budget Forum/Budget Hearings

(DBM & IAs)

Budget ReviewAnd

Consolidation(DBM)

Approval byPresident and

Cabinet

Budget Validation/

Confirmation

Submission of thePresident’s Budget

to Congress

Budget Cycle

Vis-à-vis Roles of Fiscal Institutions

Budget

Preparation

Budget

Accountability

Budget

Execution

Budget

Legislation

Congress

Bicameral Legislature:

(1) House of Representatives

(2) Senate

• Provides the legal framework for the implementation of fiscal policies

• Enacts appropriation bills

• Appropriations are approved by the Legislative in the form of:✓ General Appropriations Law✓ Public Works Acts✓ Supplemental Appropriations law✓ Automatic Appropriations

Budget Legislation

Congress Enacts Appropriation Bills and the President

Signs It Into Law

HouseHearings/

Debate

House approvaland submission

to Senate

SenateHearings/

Debate

SenateApproval

PresidentSigns the

GAA

ConferenceCommittee(Bicameral)

Budget Cycle

Vis-à-vis Roles of Fiscal Institutions

Budget

Preparation

Budget

Accountability

Budget

Execution

Budget

Legislation

Budget Execution

DBM releases funds

Agencies implement project/activity

SAROs/NCAs

Budget Cycle

Vis-à-vis Roles of Fiscal Institutions

Budget

Preparation

Budget

Accountability

Budget

Execution

Budget

Legislation

Budget Accountability

Process

Performance Targets

JANOF FY (WITH GAA)

In-Year and other

Accountability Reports

MONTHLY OR QUARTERLY

Public Disclosures

THROUGHOUT

Performance Review

THROUGHOUT

Mid-Year & Year-End Reports

BY SEP OF FY AND WITHIN THE NEXT FY

Audit

WITHIN FOLLOWING FY

Commission on Audit (COA)

Functions per Article IX-D of the Constitution

1. Examine, audit and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property owned or held in trust by, or pertaining to the government;

2. Promulgate accounting and auditing rules and regulations including those for the prevention and disallowance or irregular, unnecessary, excessive, extravagant or unconscionable expenditures, or uses of government funds and properties;

3. Submit annual reports to the President and the Congress on the financial condition and operation of the government;

4. Recommend measures to improve the efficiency and effectiveness of government operations; and

5. Keep general accounts of government and preserve the vouchers and supporting papers pertaining thereto.

CASE STUDY: THE 2019 BUDGET

ISSUES

1. Cash-based vs Obligation-based Budgeting

2. Amending Items of Appropriation

3. Presidential Veto

THANK YOU!