Department of Budget and Management

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Department of Budget and Management
Kagawaran ng Pagbabadyet at Pamamahala

Logo of the Department Budget and Management

Established: April 25, 1936
Secretary: Florencio Abad, Jr.
Website: http://www.dbm.gov.ph

The Philippines' Department of Budget and Management (DBM) (Filipino: Kagawaran ng Pagbabadyet at Pamamahala) is the executive department of the Philippine Government tasked to promote the sound, efficient and effective management and utilization of government resources as instrument to achieve national socioeconomic and political development goals. The DBM is currently headed by Secretary Florencio Abad, Jr.

Contents

General functions

  • Formulate the resource application strategy to match the government’s macro-economic policy
  • Prepare the medium-term expenditure plan
  • Undertake the formulation of the annual national budget
  • Develop and administer a national accounting system for fiscal management and control
  • Conduct a continuing study, assess and make policy recommendation of the bureaucracy
  • Establish the rules and procedures for the management of government organization resources
  • Conceptualize and administer the government’s compensation and position classification plan
  • Monitor and assess the physical as well as the financial operations of local government units and government-owned and/or – controlled corporations


History

In accordance with the Philippine Bill of 1902, the Second Philippine Commission, which acted as a legislative body, enacted appropriations measures for the annual expenditures of the government. Two years after the passage of Jones Law in 1916, which instructed the Governor-General to submit the annual budget, the Council of State was formed to prepare the annual budget.

A Budget Office, composed of four divisions: Budget Division; Expense-Central Division; Service Inspection Division; Administrative Division, was formed to assist in the preparation, enactment and implementation of appropriations made by law.

The Constitution of 1935 established budget policies and procedures.

Executive Order No. 25 issued on 25 April 1936 established the Budget Commission. By virtue of Presidential Decree No. 1405 signed on 11 June 1978, it became a Ministry. Since it followed the pattern in the United States Federal Government, the Ministry of Budget was separate from other fiscal agencies of government like the Ministry/Department of Finance.

Commonwealth Act No. 246 or the first Budget Law was passed on 17 December 1937. It took effect on the first day of the following year and provided for a line-item budget as the framework of the government's budgeting system.

On 4 June 1954, Republic Act No. 992 or the Revised Budget Act was enacted to provide for the enhanced role of the Budget Commission as the fiscal arm and budgeting adviser of the President.

The Integrated Reorganization Plan of 1972 under Presidential Decree No. 1 reorganized changes in the Budget Commission and retained four units namely the Budget Operations Office; National Accounting Office; Management Office; and Wage and Position Classification Office (WAPCO).

Presidential Decree 1177 or the Budget Reform Decree of 1977 further strengthened the planning, programming and budgeting linkages.

Under Proclamation No. 3 of President Corazon C. Aquino, budgetary functions were exercised by the Office of Budget and Management.

Executive Order No. 292 provided for major organizational subdivisions of the Department of Budget and Management.

From 1986 to 1991, the DBM rationalized funding for resource-demanding area, created measures to better control the widening of the budget deficit, and improved budget administration, systems and processes.

Under President Fidel V. Ramos, tried to make the National Budget an instrument for breaking the boom-and-bust cycle that had characterized the Philippine economy in the past. The budget then became an economic stimulus and a means to disperse the gains of economic development.

At the outset of Joseph Estrada's presidency, the Asian Financial Crisis took a second look at the country's economic policies and strategies. From mid 1998 to end of 2000, the DBM introduced budgeting reforms to improve cash management, reduce uncertainty in allotment and cash flow, and enhance transparency and accountability.

The General Appropriations Act (GAA) was made as the final spending authority so agency heads could immediately plan and contract out projects without waiting for the issuance of an allotment authority.

The DBM initiated a performance?based approach to budgeting aimed at rationalizing accountability of public officers and employees over government resources and promote client-orientation. It required agencies to specify strategic outcomes consistent with the Medium-Term Philippine Development Plan (MTPDP), develop appropriate performance indicators, and prioritize major final outputs as bases for allocation of funds. It was also during this period that DBM was able to operationalize a central e-commerce facility on government procurement system.

Under President Gloria Macapagal-Arroyo, DBM focused on fiscal responsibility, efficiency of public expenditures, and good governance. It also strengthened intergovernmental relations, elicited increased participation from the private sector in the budget process and intensied public information on the administration's fiscal policy, thrusts, and budget policies and procedures.

Organizational Structure

DBM Organizational Chart
  • Attached Agency Procurement Service
  • Internal Audit Service
  • Office of the Secretary
    • Budget and Management Policy Group
      • Fiscal Planning Bureau
      • Organization, Position, Classification and Compensation Bureau
      • Systems and Productivity Improvement Bureau
    • Budget and Management Operations Group
      • Budget and Management Bureau A
      • Budget and Management Bureau B
      • Budget and Management Bureau C
      • Budget and Management Bureau D
      • Budget and Management Bureau E
      • Budget and Management Bureau F
      • Budget and Management Bureau G
      • Budget Technical Service
    • 16 Regional Offices (Ros)
    • Corporate Affairs Group
      • Administrative Service
      • Training and Information Service
      • Corporate Planning and Reforms Service
      • Financial Management Service
      • Legal Service
      • Information and Communications Technology Systems Service


Agency Coverages

Budget and Management Bureau-A


Budget and Management Bureau-B


Budget and Management Bureau-C


Budget and Management Bureau-D


Budget and Management Bureau-E


Budget and Management Bureau-F

  • Government-Owned and Controlled Corporations (GOCCs)
  • Government Financial Institutions (GFIs)


Budget and Management Bureau-G

  • Priority Development Assistance Fund (PDAF)
  • Special Shares
  • Calamity Fund
  • Internal Revenue Allotment (IRA)


References

  • “Mandate”.Republic of the Philippines Department of Budget and Management.(Accessed on 22 October 2012).
  • “Brief History”.Republic of the Philippines Department of Budget and Management.(Accessed on 22 October 2012).
  • “Agency Coverages”.Republic of the Philippines Department of Budget and Management.(Accessed on 22 October 2012).
  • “Organizational Overview”.Republic of the Philippines Department of Budget and Management.(Accessed on 22 October 2012).


Citation

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