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ED 617 PROBLEMS, ISSUES AND TRENDS
IN GOVERNMENT BUDGETING
DR. RENATO DE LEMON PROFESSOR
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MRS. GILDA C. GALANGUEStudent Ed.D.
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REFORMS AND INNOVATIONS IN GOVERNMENT BUDGETTING
BUDGETING
GILDA GALANGUE
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QUOTATION
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QUOTATION
“Budgeting has only one rule: Do not go
over budget.” ― Leslie Tayne,
Life & Debt: A Fresh Approach to Achieving Financial Wellness
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OBJECTIVE:
Find the meaning of the different acronym in budgeting.
Define budget reform.Determine the different reforms and innovations in government budgeting.
GILDAGALANGUE
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ACRONYM IN BUDGETING
PFM Public Financial Management
PEPA
BTr
GIFMIS
M&E
Bureau of the Treasury Government Integrated Financial Management Information System
Monitoring and Evaluation
Philippine Government Electronic Procurement System
Public Expenditure and Financial Accountability
PhilGEPS
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BUDGET REFORM - making the national budget more responsive to local needs
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Public Financial Management (PFM)
The reform agenda is laid out in the Philippine Public Financial Management Reform Roadmap: Towards Improved Accountability and Transparency 2011-2015.
PFM is an essential part of the government’s plans to improve transparency, accountability, public institutions and participatory governance in pursuit of more inclusive growth and poverty alleviation.
GILDAGALANGUEREFERENCE: http://pfmp.org.ph/index.php/pfm-101
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What is PFM all about?
PFM deals with all aspects of resource mobilization and expenditure management in government. It is about the way the government raises its income, in the form of taxes, customs duties and other revenues, and manages its expenditures to deliver essential services to its citizens such as education, healthcare and other social programs, roads and infrastructure, rule of law and security, and other areas that improve the lives of the citizens.
GILDAGALANGUEREFERENCE: http://pfmp.org.ph/index.php/pfm-101
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Why is PFM so important to the Philippines?
A sound PFM system helps reduce the opportunity for misuse of funds. It also aids decision-makers in the government to perform their functions and decide where to allocate funds that will do the greatest good. More importantly, it helps inform the citizen where and how the public funds are actually being spent.
GILDAGALANGUEREFERENCE: http://pfmp.org.ph/index.php/pfm-101
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How do we measure PFM performance in the Philippines?
One of the most common tools for measuring PFM performance is the Public Expenditure and Financial Accountability (PEFA) assessment. The PFM Performance Measurement Framework (or PEFA Framework) was developed as a contribution to the collective efforts of many international stakeholders to assess and develop essential PFM systems.
GILDAGALANGUE
REFERENCE: http://pfmp.org.ph/index.php/pfm-101
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Public Financial Management (PFM) Reform Program
Philippine PFM Reform
Roadmap: Towards
Improved Accountability
and Transparency (2011-2016)
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Public Financial Management (PFM) Reform Program
Philippine PFM Reform
Roadmap: Towards
Improved Accountability
and Transparency (2011-2016)
A comprehensive map that seeks to clarify, simplify, improve and
harmonize the government’s
financial management processes and information systems.
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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Public Financial Management (PFM) Reform Program
Authorizes the PFM Committee composed of the Commission on
Audit (COA), Department of Budget
and Management (DBM),
Department of Finance (DOF) and Bureau of the Treasury (BTr)
To oversee and coordinate the
integration and automation of government
financial systems, and the implementation
of the PFM roadmap
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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OBJECTIVES By 2016, it is
envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning
to provide decision makers
with the following benefits:
1. Real-time on-line monitoring and
control of budgetary accounts
and their direct links to cash
disbursements for more effective
financial control and accountability;
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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OBJECTIVES By 2016, it is
envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning
to provide decision makers
with the following benefits:
2. Consolidated financial management
reporting requirements using
harmonized budgetary, treasury and accounting
classification with standardized
definitions for fiscal terminologies;
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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OBJECTIVES
By 2016, it is envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning
to provide decision makers
with the following benefits:
3. A single treasury account that provides
BTr a more effective way of cash management, a
more economical system for cash disbursements,
and enables it to reconcile
bank balances and remove
revenue and expenditure floats;
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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OBJECTIVES By 2016, it is
envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning to
provide decision makers with the following benefits:
4. A predictable and streamlined allotment
and cash release program throughout the year to
support the operations of
implementing agencies based on
reliable cash forecasting and
programming by DBM and the BTr;
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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OBJECTIVES By 2016, it is
envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning
to provide decision makers
with the following benefits:
5. Regular in-year reports on the status of budget execution, and timely year-end audit
reports of agency financial and
physical operations which will be used in the budget preparation process, the congressional debate on
agency budgets and performance, and the
public’s participation in the budget process; and http://pfm.gov.ph/ckfinder/
userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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OBJECTIVES By 2016, it is
envisioned that the core Government
Integrated Financial Management Information
System (GIFMIS)) will be functioning to
provide decision makers with the following benefits:
6. Systematic recording and
reporting of all liabilities of
government entities including
guaranteed and contingent liabilities to
enablenational government to
manage its financial exposure.
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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KEY PROJECTS
1.Government Integrated Financial Management Information System (GIFMIS)
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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KEY PROJECTS
2.Budget Reporting
and Performance Standards
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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KEY PROJECTS
3.Accounting and Auditing Reforms
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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KEY PROJECTS
4.Improved Treasury
Cash Management Operations
VIDEO
GILDAGALANGUE
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
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KEY PROJECTS
5.Liability Management
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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KEY PROJECTS
6.Capacity Building
6
http://pfm.gov.ph/ckfinder/userfiles/files/PFM%20Program%20Brief.pdf
GILDAGALANGUE
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As in the last five years, the Aquino Administration for 2016, will focus on the following
priority objectives:
1) Pursuit of good governance and anti-corruption measures (building constituencies for reform, strengthening planning, (M&E) and public financial management systems, streamlining frontline and bureaucratic processes , and implementing the LGU and ARMM reform programs) to create a better environment to attract investments and quality jobs.
REFERENCE: NATIONAL BUDGET MEMORANDUM #124 , MARCH 2015
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As in the last five years, the Aquino Administration for 2016, will focus on the following
priority objectives:
2) Making growth inclusive (expansion of the 4Ps, universal health care, K to 12 Basic Education Program, and housing for informal settlers) in order to raise the quality of the Filipino workforce;
REFERENCE: NATIONAL BUDGET MEMORANDUM #124 , MARCH 2015
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As in the last five years, the Aquino Administration for 2016, will focus on the following
priority objectives:
3) Creating more and better jobs and
livelihood by sustaining the growth momentum
(strategic infrastructure development,
strengthening tourism and agricultural
development, and reviving industrial
development); GILDAGALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM #124 , MARCH 2015
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As in the last five years, the Aquino Administration for 2016, will focus on the following
priority objectives:
4) Managing disaster risks (implementing
climate change adaptation measures
and risk reduction and management
programs) in order to prevent the loss of
lives , properties and livelihood;
GILDAGALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM #124 , MARCH 2015
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As in the last five years, the Aquino Administration for 2016, will focus on the following
priority objectives:
5) Establishing an enabling environment of just and lasting peace and the rule of law to promote and implement peace agreements and modernize the military and police.
GILDAGALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM #124 , MARCH 2015
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Reforms for Effective Public Expenditure
Presentation of Secretary Abad
For the Philippine
Development Forum - Plenary
PresentationFebruary 4,
2012
1.Effective public expenditure by
ensuring spending on the right priorities,
spending efficiently,
effectively, and with maximum
impact. GILDA
GALANGUE
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Presentation of Secretary
Abad For the
Philippine Development
Forum - Plenary
PresentationFebruary 4,
2012
2.On budgetary prioritization,
the core framework: the Aquino Social Contract with the Filipino
People.
Reforms for Effective Public Expenditure
GILDAGALANGUE
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Reforms for Effective Public Expenditure
Presentation of Secretary Abad
For the Philippine
Development Forum - Plenary
PresentationFebruary 4, 2012
3. Introduced the Zero-Base Budgeting
approach to eliminate
inefficient, ineffective, and
irrelevant programs and
projects, and to re-channel funds to
priority social programs.
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Presentation of Secretary
Abad For the
Philippine Development
Forum - Plenary
PresentationFebruary 4,
2012
4. Introduced reforms to
ensure the fast and efficient
implementation of the budget
and delivery of priority
programs and projects.
Reforms for Effective Public Expenditure
GILDAGALANGUE
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4. Introduced reforms A. Policy for the disaggregation of lump-sum funds
into specific programs and
projects. Lump-sum funds have
not only begotten anomalies but
have also slowed down budget execution.
B. Introduced innovations to
speed up the
procurement process.
GILDAGALANGUE
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C. Deployed Account
Management Teams in key
departments to address
bottlenecks in the implementation of
programs and projects.
D. All appropriations will have a life
span of one year. This improves the predictability of
budget execution and government operations, as
carry-over budgets will now become a thing of
the past.
4. Introduced reforms
GILDAGALANGUE
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Presentation of Secretary
Abad For the
Philippine Development
Forum - Plenary
PresentationFebruary 4,
2012
5. Ensure that each peso spent
will lead to measurable results via stronger
performance management
and performance budgeting.
Reforms for Effective Public Expenditure
GILDAGALANGUE
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Presentation of Secretary
Abad For the
Philippine Development
Forum - Plenary
PresentationFebruary 4,
2012
6.On the financial side, implement the roadmap for
Public Financial Management
Reforms together with DoF-BTr and
CoA.
Reforms for Effective Public Expenditure
GILDAGALANGUE
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Technological innovations
Technological innovations are also being pursued not only to introduce more efficiency and speed in budget execution and to ensure quality delivery of programs and projects, but also to improve transparency. For instance, in procurement, the work of expanding the Philippine Government Electronic Procurement System (PhilGEPS) launched an electronic payment facility for the Virtual Store in PhilGEPS.
GILDAGALANGUE
REFERENCE :Pursuing the Aquino Administration’s Agenda for Empowerment Through Public Expenditure Management Reform Florencio B. Abad
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Technological innovations PhilGEPS is also about to pilot an
online bidding system. Moreover, the DBM, together with the Commission on Audit (CoA) and the Department of Finance-Bureau of Treasury (DoF-BTr), is in the midst of developing a Government Integrated Financial Management Information System (GIFMIS). This System, envisioned for completion by 2016, will automate and streamline the processing and flow of funds and information among the Public Financial Management oversight agencies and, eventually, among the implementing agencies.
GILDAGALANGUE
REFERENCE :Pursuing the Aquino Administration’s Agenda for Empowerment Through Public Expenditure Management Reform Florencio B. Abad
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2013-2016: Pursuing Inclusive and Sustained Growth and Irreversibility of Reform
Economy’s strength continues to come largely from the services sector. Indeed, this sector, particularly BPO, needs to be sustained. However, it is those from the educated middle class who are able to leverage on opportunities in this sector.
GILDAGALANGUE
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First, fiscal discipline: we are on track to meeting our fiscal consolidation goals, particularly the target to bring the deficit-to-GDP ratio down to 2 percent by this year.
In ensuring allocative efficiency, the Budget priorities from this year to 2016 should reflect this intention to further strengthen the domestic economy.
Lastly, to support operational efficiency, the Budget’s face will change starting 2014, literally and figuratively. Two key developments move us to this direction.
2013-2016: Pursuing Inclusive and Sustained Growth and Irreversibility of Reform
GILDAGALANGUE
REFERENCE :Pursuing the Aquino Administration’s Agenda for Empowerment Through Public Expenditure Management Reform Florencio B. Abad
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PROBLEMSThe Government’s economic managers believe that a Medium-Term Expenditure Framework (MTEF), is the key to achieving fiscal discipline, more strategic prioritization of resources, and better operating efficiencies over the medium term.This explains problems and weaknesses that the government hopes to address by installing the MTEF, also called a multi-year budgeting system. It also enumerates elements of the MTEF, explains anticipated benefits, and outlines how the Government has been setting them in place during the country’s ongoing budgeting process. Lastly, this report mentions achievements that have already been registered since the MTEF’s initial installation. GILDA
GALANGUE
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PROBLEMSThe problem with the Philippines’ current one-year budgeting system is that it provides no mechanism for the Government to control its budget and expenditure beyond a two-year time horizon. It provides no systematic way of projecting or managing the expenditure requirements of ongoing and new programs of government agencies GILDA
GALANGUE
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PROBLEMSOne problem in many countries is that responsibility has been devolved from the central level to the district level, the province level, or further down. A number of countries are facing the difficulties of human resource development at the grassroots level. These countries have worked to improve governance through legal provisions. GILDA
GALANGUE
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ISSUES Declining Global Peace Index (GPO Rank from 130th in 2013 to 134th in 2014. Despite the collective efforts to maintain a safe and secure environment, the Philippines has remained among the least peaceful countries in the 2014 Global Peace Index Report of the Institute for Economics and Peace. The slide in rank was attributed to the persistence of internal conflict, crime incidents, terrorism and territorial dispute with China.
GILDAGLANGUE
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ISSUES Delay in the completion of the peace process amidst recent developments. After 17 years of negotiation, the Comprehensive Agreement of Bangsamoro between the government and Moro Islamic Liberation Front was signed in March 2014. In anticipation of the enactment of the Basic Bangsamoro Law (BBL), initial funding support has been provided for socio-economic programs and Annex on Normalization of the Framework Agreement on the Bangsamoro.
GILDAGLANGUE
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ISSUES Limited capacity of LGUs
and Regional Line Agencies (RLAs) to
implement programs in conflict-stricken and
vulnerable areas. GILDAGLANGUE
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Reaction
GILDAGALANGUE
In line with the medium-term goal of digitizing the bidding process, develop additional features of PhilGEPS (The Philippine Government Electronic Procurement System) within 360 days, particularly: a facility to enable the online submission of bid documents; a module for CSOs to monitor tenders online; an electronic fee payment system; an expanded supplier registry; and a module for agency posting of their annual procurement plans.
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Reaction
GILDAGALANGUE
To better manage government manpower requirements and improve accountability in the disbursement of funds for personal services, the Government will complete its Government Manpower Information System (GMIS) and develop a central payroll system within 360 days, in accordance with Executive Order No. 31 series of 2011.
Stakeholders said they knew that an effort to rid the Government of ghost employees ,private software will be able to handle the national payroll system .
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QUOTATION
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