Government Budgeting
GOVERNMENT BUDGETING IN THE PHILIPPINES * BUDGET PRINCIPLES
The term “budget” may be traced back to the Latin word “bulga”, which literally means bag or purse. Some scholars however seem to favor its deviations from the middle English “bouget”, meaning bag or wallet. It applied to the leather bag carried by the Chancellor of the Exchequer to parliament and contained the documents explaining the needs and resources of the country. As government changed and developed, the “budget” took on a much broader meaning. * GOVERNMENT BUDGETING
Government budgeting is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country. It also entails the management of government expenditures in such a way that will create the most economic impact from the production and delivery of goods and services while supporting a healthy fiscal position. * IMPORTANT FEATURES OF GOV'T BUDGET
As authorized by prominent authors of public finance, especially professor Buck, the budget, as a financial and work plan, has three features namely: 1. Equilibrium 2. Comprehensiveness 3. Annuality * KINDS OF BUDGET
Administrative budget * It includes the collection and disposition of all funds which belong exclusively to the government. It omits the income and outgo of the so called trust and similar funds administered by the government.
Consolidated Cash Budget * It includes everything shown in the administrative budget. All cash transactions between the government and the public are shown.
National Economic Budget * It is the type of budget which reflects the impact of the government’s taxing and spending activities on the economy. It tabulates the main economic transaction in the following major sectors of the economy: consumers, business, international and governmental.
Capital Budget- * It provides a vehicle for financial planning over a period of years. It separates financing for
The term “budget” may be traced back to the Latin word “bulga”, which literally means bag or purse. Some scholars however seem to favor its deviations from the middle English “bouget”, meaning bag or wallet. It applied to the leather bag carried by the Chancellor of the Exchequer to parliament and contained the documents explaining the needs and resources of the country. As government changed and developed, the “budget” took on a much broader meaning. * GOVERNMENT BUDGETING
Government budgeting is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country. It also entails the management of government expenditures in such a way that will create the most economic impact from the production and delivery of goods and services while supporting a healthy fiscal position. * IMPORTANT FEATURES OF GOV'T BUDGET
As authorized by prominent authors of public finance, especially professor Buck, the budget, as a financial and work plan, has three features namely: 1. Equilibrium 2. Comprehensiveness 3. Annuality * KINDS OF BUDGET
Administrative budget * It includes the collection and disposition of all funds which belong exclusively to the government. It omits the income and outgo of the so called trust and similar funds administered by the government.
Consolidated Cash Budget * It includes everything shown in the administrative budget. All cash transactions between the government and the public are shown.
National Economic Budget * It is the type of budget which reflects the impact of the government’s taxing and spending activities on the economy. It tabulates the main economic transaction in the following major sectors of the economy: consumers, business, international and governmental.
Capital Budget- * It provides a vehicle for financial planning over a period of years. It separates financing for