Basic Budgeting Concept

6 May 2023

Budgeting 101: What is Budget Utilization Rate (BUR)?

The most common measure of absorptive capacity is the budget utilization rate (BUR) which may be computed as obligation rate or disbursement rate. What is Obligation Rate? Obligation rate is used to measure the ability of the agency to utilize (use/spend) the allotment or obligational authority made available by the Department of Budget and Management (DBM). Obligation rate is measured as the ratio/percentage of obligation over the allotment issued to the agency (i.e., obligation divided by allotment). This may be computed per allotment class or total obligation over total allotment for all allotment class. For example, if the total obligation...

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4 May 2023

Budgeting 101: What is an “item of appropriation”?

An item of appropriation refers to an amount appropriated in the General Appropriations Act (GAA) for a program, activity or project. In the case of programs with several activities, the item of appropriation shall refer to each of the activity. Department of Budget and Management Example of an “item of appropriation” Below is a screenshot of the budget of the Office of the President of the Philippines and we use it as an example to illustrate an item of appropriation under a program. In the above appropriation (i.e., budget of the Office of the President), the program is “Presidential Oversight...

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4 May 2023

Budgeting 101: What is a Program, Project, or Activity (PAP)?

What is a PAP? A program, project or activity (PAP) is any work process or group of work processes undertaken to realize the outputs and outcomes of an agency. This is represented by an item of appropriation in the national budget. Department of Budget and Management (DBM) Simply put, PAP pertains to what the government does collectively, through its various offices, to achieve what it planned to realize during the year. What is a program? A program is defined as a group of activities and projects that contribute to a common particular outcome. A program should have the following: 1)...

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1 May 2023

Budgeting 101: What is Augmentation? (Explained in a 3 min. video)

What is Augmentation? Augmentation is the act of the constitutional officers authorized to use current year savings in their respective appropriations to cover actual current year deficiencies in any existing item of appropriation within their respective offices. (Section 76, General Provisions, FY 2022 General Appropriations Act) In the above definition, there are four (4) important things to note in order to understand what an augmentation is: Who are authorized to augment? Neither Government Accountants, Budget Officers, nor the heads of agencies, not even auditors, are authorized to augment the budget of their agencies. Only the following constitutional officers are authorized...

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1 May 2023

Budgeting 101: What is absorptive capacity?

What is absorptive capacity? In simple terms, absorptive capacity, as used in public financial management, refers to the ability of government agencies to utilize or use the resources (e.g., government funds) made available to them. [1][2][3] One example of resource available to government agencies is their annual budget under pertinent appropriations act. Absorptive capacity means the ability of the government agency to use its budget under the appropriations act and may be measured using different ways depending on what the government wants to measure. The most common measure of absorptive capacity is the budget utilization rate (BUR) which may be...

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30 Nov 2020
LGU: Rules on Realignment

LGU: Rules on Realignment

[ad_1] Question: hi gabotaf, ask kolang po dito sa diff scenario, kung required paba ang resolution from Sanggunian , and/or alin dito yung mga bawal for realignment purposes? within one office 1.1 PS to PS 1.2 MOOE to MOOE 1.3 PS to MOOE 1.4 MOOE to PS 1.5 PS/MOOE to CO 1.6 CO to PS/MOOE Inter- Office 2.1 PS to PS 2.2 MOOE to MOOE 2.3 PS to MOOE 2.4 MOOE to PS 2.5 PS/MOOE to CO 2.6 CO to PS/MOOE Special Purpose 3.1 One SP to Other SP 3.2 SP to GF 3.4 GF to SP Answers | Comments...

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