What is

26 May 2020

What is Fiscal Space?

The Department of Budget and Management (DBM) defines fiscal space as the available funding that the government could use for its priority programs. Fiscal space is computed as the difference between projected obligations ceilings (after considering projected revenues and deficit targets) and forward estimates of the cost of ongoing programs. The President and the Cabinet will lead the setting of the strategic direction and distribution of the unallocated fiscal space, allowing the better assessment of trade-offs and opportunities. If fiscal space is limited or negative, decisions may need to be taken to reduce activities and limit spending on new projects....

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26 May 2020

What is Forward Estimate?

The Department of Budget and Management (DBM) defines forward estimates (FEs) as projections or estimation of the future costs of existing policies. It also serves as the validation instrument of determining the reasonable levels of agency proposals on existing programs/activities/projects. [DBM] FEs are estimates of the future costs of on-going policies, programs and projects of the government for the next three years. They represent the amount that will need to be spent to maintain existing approved activities and projects. [DBM] The FEs are used to estimate the residual amount of ‘fiscal space’ that may be available to fund new activities...

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10 Apr 2020

What is an Obligational Authority?

An obligational authority is a document issued by the Department of Budget and Management (DBM) to a government agency authorizing the agency to incur obligations or enter into a contract. There are several forms of obligational authority. These documents include the following: 1. GAA-as-Allotment-Order (GAAAO). The GAAAO serves as an obligational authority wherein appropriations in the GAA are considered released, except those identified in the pertinent issuance as “For Later Release” or “Negative List”. 2. General Allotment Release Order (GARO). A GARO is a comprehensive authority issued to all national government agencies, in general, to incur obligations, i.e. Retirement and...

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10 Apr 2020

What is a Budget Call?

A budget call, is budget document, usually in the form of a National Budget Memorandum, issued by the Department of Budget and Management (DBM) at the start of the budget preparation phase. The budget call contains, among others, the budget priorities framework of the government, which sets budget priorities, macroeconomic assumptions, and fiscal parameters for the proposed budget. The budget call may also contain guidelines, procedures, and prescribed forms in formulating budget proposals to be used by national government agencies. Post Views: 2,578

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10 Apr 2020

What is Agency Performance Review (APR)

Agency Performance Review (APR) refers to the process of determining the level of accomplishment of each agency in terms of major final outputs, income generated, and actual expenditures incurred in the production/delivery of goods and services to the public vis-à-vis the targets/budgets for the same period. Pursuant to DBM Circular Letter No. 2018-13, national government agencies are required to submit to the Department of Budget and Management (DBM) semi-annual reports of their accomplishments, both work and financial results in the form of Agency Performance Review. Schedule of APR: For the 1st Semester (covering January 1 to June 30) – the...

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31 Mar 2020

What is an Accounts Payable?

Accounts payable (A/P) pertains to obligations/ commitments of national government agencies, whether current year and prior years, for which services have been rendered, goods have been delivered or projects have been completed and accepted. Prior Year’s Accounts Payable (PY A/P) are those accounts payable which have been incurred and remained unpaid as of the end of the preceding year. Current Year’s Accounts Payable (CY A/P) are those accounts payable which have been incurred during the current year and remain unpaid before the end of the current year. Source: Glossary of Terms, Department of Budget and Management Post Views: 748

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25 Mar 2020

What is Augmentation?

Augmentation is the act of the constitutional officers (i.e., President, Senate President, Speaker of the House of Representatives, Chief Justice of the Supreme Court, and Heads of Constitutional Offices such as the Commission on Audit, Commision on Election, and Civil Service Commission) authorized to use savings in their respective appropriations to cover a deficiency in any existing item of appropriation within their respective offices. Section 25 (5), Article VI of the 1987 Constitution, provides that no law shall be passed authorizing any transfer of appropriations; however, the President, the President of the Senate, the Speaker of the House of Representatives,...

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24 Mar 2020

What is Savings?

In general, savings refer to portion or balances of any released appropriations which have not been obligated as a result of circumstances or events as identified in an Appropriation Act. The meaning of savings varies from one Appropriation Act to another. Hence, it is important to always refer to the General Provisions of an Appropriation Act to know what the Act mean by savings. Post Views: 307

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