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Name: Charibelle A. Avila Year & Section: Bpa 3-A

The document discusses the history and adoption of various budgeting approaches in the Philippines: - Line budgeting was adopted through the Commonwealth Act No. 2546 in 1937 and gave agencies flexibility to manipulate performance data. The legislature had power over agency budgets. - Planning, Programming and Budgeting System (PPBS) was created by RAND Corporation for the US Air Force in 1961 and adopted in the Philippines in 1987 to restructure the government following Martial Law. - Performance budgeting was implemented in 1954 to address social, economic and political challenges and established through R.A. No. 992. - Zero-based budgeting was first used in 1977 and "revolutionized" budgeting processes

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17 views

Name: Charibelle A. Avila Year & Section: Bpa 3-A

The document discusses the history and adoption of various budgeting approaches in the Philippines: - Line budgeting was adopted through the Commonwealth Act No. 2546 in 1937 and gave agencies flexibility to manipulate performance data. The legislature had power over agency budgets. - Planning, Programming and Budgeting System (PPBS) was created by RAND Corporation for the US Air Force in 1961 and adopted in the Philippines in 1987 to restructure the government following Martial Law. - Performance budgeting was implemented in 1954 to address social, economic and political challenges and established through R.A. No. 992. - Zero-based budgeting was first used in 1977 and "revolutionized" budgeting processes

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Charibelle Avila
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NAME: CHARIBELLE A.

AVILA YEAR & SECTION: BPA 3-A

Discuss the history of adoption and development of the following approaches in


budgeting under the Philippines budgeting setting. What budget approach are we actually
using in the Philippines budgeting at present?

Budget Approach

-When presented with this topic, the chief of the financial management office of the
major agency responded, "At the agency level, we are truly exposed to all methods." We are
encouraged to utilize ZZB in budget preparation: performance budgeting establishes the
criteria in budget authorization and accountability.

-These techniques are logical in nature.

LINE BUDGETING PLANNING, PROGRAMMING AND


BUGETING SYSTEM
History
● In the 1950’s, performance budgeting gave History
agencies lots of opportunity to manipulate ● The Rand Corporation in Santa Monica,
the facts to their favor, as well as significant California, created it for use by the United
freedom in calculating the project benefits of States Air Force. Defense Secretary
planned operations. McNamara implemented PPBS in 1961 for
● The parliamentarians were able to identify the management of his department.
"objects of future choice" through the line- ● In August 1965, President Johnson issued
item budget, particularly those relating to an executive order directing all executive
additional positions. departments to implement PPBS.
● The legislature had enormous power over
agencies of their choice during the legislative Adoption
or authorization process of line-item budgets. -Following the proclamation of Martial Law in
the Philippines in September 1987, P.D. No.
Adoption 1 was issued, calling for the restructuring of
-Commonwealth Act No. 2546, or the Budget the entire government system in line with the
Act of 1937, was enacted. Integrated Reorganization Plan suggested by
the President Commission on
Reorganization- formulation.
PERFORMANCE BUDGETING ZERO-BASE BASED BUDGETING
SYSTEM
History History
● Recognized the early 1950’s gap in the -In the Philippines, it was first used in
development of public fiscal 1977, during the preparation of the
management in the field of budgeting in national budget for fiscal year 1987.
the Philippines. ● In July 1954, the budget, -The zero-base technique
accounting, and auditing modernization "revolutionized" budgeting processes in
project was begun in conjunction with our both developed and developing
management. countries.
● Budgetary reforms, like other reform -As is customary, the United States set
initiatives carried out under the wide US the tone, and its message was echoed
technical assistance program in the
and welcomed by many developing
Philippines, were an attempt to begin
necessary changes in an area that has been countries.
largely ignored in the past.
● It varied from previous programs, however, Adoption
in that it used a strategy that had not been Section 8 of PD 1177 contains the legal
tested in the other jurisdiction: performance foundation for adopting ZZB (Budget
budgeting. reform Decree)
● In 1950, an Economic Mission led by -Section 8: Development Projects. The
Daniel Bell implemented performance development process necessitates the
budgeting in the Philippines as part of a implementation of large-scale
package of reforms under the presidency of development projects that have a
late President Magsaysay. substantial impact on the infrastructure
● The goal of these changes, which
program, debt ceilings, the Balance of
included modernizing fiscal Payments, domestic credit, and
management, was to assist the government expenditure levels. The
government in dealing with the serious budget process should formally address
social, economic, and political the scheduling of important national
challenges. projects in order to guarantee adherence
to established fiscal, monetary,
Adoption
international payments, and other
- On June 4, 1954, R.A. No. 992, or the
amended budget act, was passed, thus restrictions.
establishing performance budgeting in the
Philippines. This statute mandated that the
whole budgeting idea be based on a triad of
specified functions, projects, and activities.

Resources:
https://www.slideshare.net/jhong8990/approaches-and-techniques-in-budgeting/40

Briones, l. Public Fiscal Administration. UP-NCPAG

Johny A. Gerardo, LL.B, MPA

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