Definition of Terms

Budgeting

Allocation of revenues/ borrowed funds among agency programs and projects to attain socio-economic goals and within the bounds of fiscal sustainability/prudence.

Budget of Expenditures and Sources of Financing (BESF)

A document which reflects the annual program of estimated expenditures and sources of financing, constitutionally mandated to be submitted by the executive branch to the legislature to support the National Budget proposal.

Capital Outlays or Capital Expenditures

Refer to an expenditure category/expense class for the purchase of goods and services, the benefits of which extend beyond the fiscal year and which add to the assets of the Government, including investments in the capital stock of GOCCs and their subsidiaries.

Cash Advances

Advances granted to officers and employees which may be classified into regular cash advances and special cash advances.

Cash Operations Report (COR)

A report prepared by the Bureau of Treasury (BTr) on the actual government receipts, disbursements, the resulting surplus or deficit, as well as the corresponding financing (domestic and foreign sources) to cover the deficit.

Classification of Functions of Government (COFOG)

Detailed classification of the purpose for which funds are used, that is by function or socio-economic objective that government aims to achieve through various expenditures.

Aside from generating aggregates to be used as indicators or measures, COFOG also enables tracking specific functions/policies over time regardless of organizational revisions.

Being an international standard, COFOG allows international comparisons.

Under COFOG, the budget allocations of specific programs/projects of government entities whose expenditures are categorized into 10 sectors as follows: 1) General Public Service, 2) Defense, 3) Public Order and Safety, 4) Economic Affairs, 5) Environmental Protection, 6) Housing and Community Amenities, 7) Health, 8) Recreation, Culture and Religion, 9) Education, 10) Social Protection.

Commitment

An obligation incurred by government agencies for which items have not been delivered and services not yet rendered. This is also called “Obligations Not Yet Due and Demandable”.

Common Fund System

Under this system, agencies are given flexibility in the use of cash balances under the Regular MDS accounts to settle payables, after satisfying those obligations programmed to be paid during the month as reflected/considered in the approved Monthly Disbursement Program (MDP).

Constructive Cash Receipts

A financing source corresponding to proceeds from foreign loans/grants in the form of goods and services for which no cash is remitted to the National Treasury. Such goods and services have been paid directly by the lender to the supplier.

Current Operating Expenses (COE)

Amount budgeted for the purchase of goods and services for the conduct of normal government operations within a budget year. Includes goods and services that will be used or consumed during the budget year.

Custodial Funds

Receipts or cash received by any government agency from either a private source or another government agency for the fulfillment of a specific purpose.

New General Appropriations (Annual)

An authorization for incurring obligations during a specified budget year as listed in the General Appropriations Act (GAA).

The GAA is the legislative authorization that contains the new appropriations authorized by Congress in terms of specific amounts for salaries, wages and other personnel benefits; MOOE; and CO authorized to be spent for the implementation of programs, activities and projects (P/A/Ps) of all departments, bureaus and offices of government for a given year.

Regular Cash Advance

Refers to cash advance granted to cashiers, disbursing officers, paymasters and/or property/ supply officers for salaries and wages, commutable allowances, honoraria and other similar payments and petty cash operating expenses.

Special Cash Advance

Refers to those granted on the explicit authority of the agency heads to duly designated disbursing officers or employees for other legally authorized purposes.

Unprogrammed Appropriations

Appropriations under the annual GAA which provide standby authority to incur additional agency obligations for priority programs or projects when revenue collections exceed targets, or when additional foreign funds are generated.

Supplemental Appropriations

Additional appropriation authorized by law to augment the original appropriations which proved to be inadequate or insufficient for the particular purpose intended due to current economic, political or social conditions.

References:

– Glossary of Terms (2019), Department of Budget and Management