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OpenBudgetSurvey2019Questionnaire

PhilippinesApril2020

CountryQuestionnaire:Philippines

PBS-1.WhatisthefiscalyearofthePBSevaluatedinthisOpenBudgetSurveyquestionnaire?

Pleaseenterthefiscalyearinthefollowingformat:“FYYYYY”or“FYYYYY-YY.”

Answer:FY2019

Source:DBM,NationalBudgetMemorandumNo.130:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2,17April2018;https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

DBM,NationalBudgetMemorandumNo.129:NationalBudgetCallforFY2019,3January2018;https://www.dbm.gov.ph/index.php/209-latest-issuances/national-budget-memorandum/2018/406-national-budget-memorandum-no-129

Comment:TheBudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2isthemostrecentlyreleasedversionofthePBS,togetherwiththeNationalBudgetCallforFY2019.

PeerReviewerOpinion:Agree

GovernmentReviewerOpinion:Agree

PBS-2.WhenisthePBSmadeavailabletothepublic?

PubliclyavailablebudgetdocumentsaredefinedasthosedocumentsthatarepublishedonthewebsiteofthepublicauthorityissuingthedocumentwithinthetimeframespecifiedintheOBSmethodologyandthatallcitizensareabletoobtainfreeofcharge.(SeetheOpenBudgetSurveyGuidelinesonPublicAvailabilityofBudgetDocuments.)ThisisachangefrompreviousroundsoftheOpenBudgetSurvey:nowatminimumdocumentsmustbemadeavailableontheInternetandfreeofchargetobeconsideredpubliclyavailable.

TheOBSmethodologyrequiresthatforaPBStobeconsideredpubliclyavailable,itmustbemadeavailabletothepubliconemonthbeforetheExecutive’sBudgetProposalissubmittedtothelegislatureforconsideration.IfthePBSisnotreleasedtothepublicatleastonemonthbeforetheExecutive’sBudgetProposalissubmittedtothelegislatureforconsideration,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedforthePBS.

Answer:a.Atleastfourmonthsinadvanceofthebudgetyear,andatleastonemonthbeforetheExecutive’sBudgetProposalisintroducedinthelegislature

Source:DepartmentofBudgetandManagement(DBM),NationalBudgetMemorandumNo.130:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2

DBM,NationalBudgetMemorandumNo.129:NationalBudgetCallforFY2019

Comment:


GovernmentReviewer

Opinion:Agree

PBS-3a.IfthePBSispublished,whatisthedateofpublicationofthePBS?

Notethatthedateofpublicationisnotnecessarilythesamedatethatisprintedonthedocument.

ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.

Pleaseenterthedateinthefollowingformat:“DD/MM/YYYY.”Forexample,5September2018shouldbeenteredas05/09/2018.Ifthedocumentisnotpublishedornotproduced,leavethisquestionblank.

Answer:17/4/2018

Source:DBM,NationalBudgetMemorandumNo.30:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2;https://www.dbm.gov.ph/209-latest-issuances/national-budget-memorandum/2018/798-national-budget-memorandum-no-130

Comment:



PBS-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationofthePBS.

Ifthedocumentisnotpublishedatall,researchersshouldmarkthisquestion“n/a.”

Answer:ItisthedateofpublicationintheofficialDBMwebsiteindicatedinthedocumentpropertiesoftheuploadedfile

Source:https://www.dbm.gov.ph/209-latest-issuances/national-budget-memorandum/2018/798-national-budget-memorandum-no-130

Comment:



PBS-4.IfthePBSispublished,whatistheURLorweblinkofthePBS?

ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.Ifthedocumentisnotpublishedatall,researchersshouldleavethisquestionblank.

Answer:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Source:DBMWebsite,NationalBudgetMemorandumNo.130:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2,17April2018

Comment:DBM,NationalBudgetMemorandumNo.129:NationalBudgetCallforFY2019,3January2018;https://www.dbm.gov.ph/wp-content/uploads/Issuance/2018/National%20Budget%20Memorandum/NBM-No129.pdf



PBS-5.IfthePBSispublished,arethenumericaldatacontainedinthePBSavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/

Option“d”appliesifthePBSisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No

Source:DBM,NationalBudgetMemorandumNo.130:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2

Comment:DBM,NationalBudgetMemorandumNo.129:NationalBudgetCallforFY2019



PBS-6a.IfthePBSisnotpubliclyavailable,isitstillproduced?

IfthePBSisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionPBS-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionPBS-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.Ifadocumentisnotreleasedtothepublic,researchersmayneedtowritetoorvisittherelevantgovernmentofficeinordertodeterminewhetheranswer“c”or“d”applies.

http://opendatahandbook.org/glossary/en/terms/machine-readable/

Answer:e.Notapplicable(thedocumentispubliclyavailable)

Source:DBMWebsite

Comment:



PBS-6b.Ifyouselectedoption“c”or“d”inquestionPBS-6a,pleasespecifyhowyoudeterminedwhetherthePBSwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionPBS-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:

PeerReviewerOpinion:

GovernmentReviewerOpinion:

PBS-7.IfthePBSisproduced,pleasewritethefulltitleofthePBS.

Forexample,atitleforthePre-BudgetStatementcouldbe“Proposed2019StateBudget”or“GuidelinesforthePreparationofAnnualPlanandBudgetfor2018/19.”

Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2;andNationalBudgetCallforFY2019

Source:DBM,NationalBudgetMemorandumNo.130:BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsUnderTier2

DBM,NationalBudgetMemorandumNo.129:NationalBudgetCallforFY2019

Comment:

PeerReviewerOpinion:DisagreeSuggestedAnswer:I'mnotsurehowIBPwishestoaddressthis--the"budgetcall"wasissuedmorethanthreemonthsbeforetheBudgetPrioritiesFramework.Itisindeedimportanttoreadthemtogether(e.g.,theproposedshifttoaone-yearcash-basedbudgetfromamulti-yearobligation-based

budgetisdiscussedinsomewhatmoredetailintheearlierbudgetcall).So,onecouldconsiderthetwodocumentstogetherasthe"pre-budget"statement,oronecouldfocusonthelaterBudgetPrioritiesFrameworkasthe"Pre-BudgetStatement"


ResearcherResponseThePBSareintwodocuments:(1)NationalBudgetCallforFY2019,and(2)BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2.

PBS-8.Istherea“citizensversion”ofthePBS?

WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.Whileitisrecognizedthatitmaybeunreasonabletoexpectthatacitizensversionisproducedforeachandeveryoneofthosekeydocuments,itseemsacceptabletoexpectthataccordingtogoodpractice,theexecutivereleasesacitizensversionofkeybudgetdocumentsforeachofthefourstagesofthebudgetprocesstoallowcitizenstobeawareofwhatishappening,intermsofpublicfinancialmanagement,throughouttheentirebudgetcycle.FormoreinformationonCitizensBudgetsee:http://www.internationalbudget.org/opening-budgets/citizens-budgets/.

Answer:a.Yes

Source:DBM,Brieferonthe2019BudgetPrioritiesFramework,20April2018;https://www.dbm.gov.ph/images/pdffiles//2019-Budget-Priorities-Framework-Final.pdf

Comment:Thedocumentwaspublishedontime.



ResearcherResponseThereisagreementthatthereisacitizensversionofthePBS.

EBP-1a.WhatisthefiscalyearoftheEBPevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2019

Source:DBM,ThePresident'sBudgetMessageFY2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019DBM,NationalExpenditureProgramFY2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019DBM,BudgetofExpendituresandSourcesofFinancingFY2019,21July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019DBM,StaffingSummary2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/staffing-summary-2019DBM,TechnicalNotesonthe2019ProposedNationalBudget,26September2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:

http://www.internationalbudget.org/opening-budgets/citizens-budgets/

ThePresident'sBudgetMessageFY2019isthemostrecentlyreleasedversionoftheEBP.ThesupportingEBPdocumentsaretheNationalExpenditureProgramFY2019,BudgetofExpendituresandSourcesofFinancingFY2019,StaffingSummary2019,andTechnicalNotesonthe2019ProposedNationalBudget.



EBP-1b.WhenistheEBPsubmittedtothelegislatureforconsideration?


Answer:20/7/2018

Source:JellyMusico,"PRRDSubmitsProposedP3.757-T2019NationalBudget,"PhilippineNewsAgency;http://www.pna.gov.ph/articles/1042481

Comment:



EBP-2.WhenistheEBPmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanEBPtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicwhilethelegislatureisstillconsideringitandbeforethelegislatureapproves(enacts)it.IftheEBPisnotreleasedtothepublicbeforethelegislatureapprovesit,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheEBP.

TheOBSdefinitionofanExecutive’sBudgetProposalisadocument(s)that(i)theexecutivesubmitstothelegislatureasaformalpartofthebudgetapprovalprocessand(ii)thelegislatureeitherapprovesoronwhichitapprovesproposedamendments.

TheOBSwilltreattheExecutive’sBudgetProposalas“NotProduced,”inthefollowingcases:

Theexecutivedoesnotsubmitthedraftbudgettothelegislature;orThelegislaturereceivesthedraftbudgetbutdoesnotapproveitordoesnotapproverecommendationsonthedraftbudget;Thelegislaturerejectsthedraftbudgetsubmittedbytheexecutive,buttheexecutiveimplementsitwithoutlegislativeapproval;orThereisnolegislature,orthelegislaturehasbeendissolved.

Answer:a.Atleastthreemonthsinadvanceofthebudgetyear,andinadvanceofthebudgetbeingapprovedbythelegislature


Comment:TheEBPispublished(1)July20,whichismorethanfivemonthsbeforethestartoftheFY,and(2)beforethebudgetproposalwasapprovedinFebruary2019.



EBP-3a.IftheEBPispublished,whatisthedateofpublicationoftheEBP?




Inthecommentboxesbelow,researchersshouldalsolistanysupportingdocumentstotheEBPandtheirdateofpublication.

Answer:20/7/201820/7/2018

Source:DBM,ThePresident'sBudgetMessageFY2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019

Comment:DBM,NationalExpenditureProgramFY2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019DBM,BudgetofExpendituresandSourcesofFinancingFY2019,21July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019DBM,StaffingSummary2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/staffing-summary-2019DBM,TechnicalNotesonthe2019ProposedNationalBudget,26September2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget



EBP-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheEBP.


Answer:IwenttotheofficialDBMwebsite.FromtheBudgetDocumentsdrop-downmenu,IclickedThePresident'sBudgetMessageFY2019(EBP).IcheckedthedocumentpropertiesoftheEBPtodeterminethedateofpublication.

Source:DBM,ThePresident'sBudgetMessage,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019

Comment:



EBP-4.IftheEBPispublished,whatistheURLorweblinkoftheEBP?


Inthecommentboxesbelow,researchersshouldalsolistanysupportingdocumentstotheEBPandtheirURLorweblink.

Answer:https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019

Source:DBM,ThePresident'sBudgetMessage,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019

Comment:DBM,NationalExpenditureProgramFY2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019DBM,BudgetofExpendituresandSourcesofFinancingFY2019,21July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019DBM,StaffingSummary2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/staffing-summary-2019DBM,TechnicalNotesonthe2019ProposedNationalBudget,26September2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget



EBP-5.IftheEBPispublished,arethenumericaldatacontainedintheEBPoritssupportingdocumentsavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/.

Option“d”appliesiftheEBPisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.


Answer:b.Yes,someofthenumericaldataareavailableinamachinereadableformat


Comment:NumericaldataareavailableintheNationalExpenditureProgram,https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019



EBP-6a.IftheEBPisnotpubliclyavailable,isitstillproduced?

IftheEBPisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionEBP-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionEBP-2).

Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.

Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.

Option“d”appliesifthedocumentisnotproducedatall.

Option“e”appliesifthedocumentispubliclyavailable.

Ifadocumentisnotreleasedtothepublic,researchersmayneedtowritetoorvisittherelevantgovernmentofficeinordertodeterminewhetheranswer“c”or“d”applies.



Comment:



EBP-6b.Ifyouselectedoption“c”or“d”inquestionEBP-6a,pleasespecifyhowyoudeterminedwhethertheEBPwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionEBP-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



EBP-7.IftheEBPisproduced,pleasewritethefulltitleoftheEBP.

Forexample,atitlefortheExecutive’sBudgetProposalcouldbe“DraftEstimatesofRevenueandExpenditureforBY2018-19,producedbytheMinistryofFinance,PlanningandEconomicDevelopment.”

IfthereareanysupportingdocumentstotheEBP,pleaseentertheirfulltitlesinthecommentboxbelow.


Answer:ThePresident'sBudgetMessageFY2019

Source:DBM,ThePresident'sBudgetMessage2019,20July2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019

Comment:SupportingEBPdocumenttitles:DBM,NationalExpenditureProgramFY2019DBM,BudgetofExpendituresandSourcesofFinancingFY2019;DBM,StaffingSummary2019;DBM,TechnicalNotesonthe2019ProposedNationalBudget.



EBP-8.Istherea“citizensversion”oftheEBP?

WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.Whileitisrecognizedthatitmaybeunreasonabletoexpectthatacitizensversionisproducedforeachandeveryoneofthosekeydocuments,itseemsacceptabletoexpectthataccordingtogoodpractice,theexecutivereleasesacitizensversionofkeybudgetdocumentsforeachofthefourstagesofthebudgetprocesstoallowcitizenstobeawareofwhatishappening,intermsofpublicfinancialmanagement,throughouttheentirebudgetcycle.FormoreinformationonCitizensBudgetsee:http://www.internationalbudget.org/opening-budgets/citizens-budgets.

Answer:a.Yes

Source:DBM,2019People'sProposedBudget,23August2018;https://www.dbm.gov.ph/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2

Comment:



EB-1a.WhatisthefiscalyearoftheEBevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2018

Source:RepublicActNo.10964,GeneralAppropriationsActFY2018,28December2017

Comment:TheGeneralAppropriationsActFY2018isthemostrecentlyreleasedversionoftheEB.



IBPCommentThankyouforthecommentfromthePeerReviewer.ItishelpfultonotethattheFY2019budgetwasnotapprovedorpublishedbeforetheendofthefiscalyear.However,becausethebudgetproposal(EBP)andtheenactedbudget(EB)areseparatedocuments,theycanusedifferentfiscalyears.SincetheFY2019EBPwaspublishedbeforetheendof2018(theresearchcut-offdate),itisthecorrectyeartobeassessedinthisOBS.Similarly,sincetheFY2019EBwas*not*approvedorpublishedin2018,thenFY2018isthecorrectfiscalyeartoassessfortheEBinthisOBS.

EB-1b.WhenwastheEBapproved(enacted)bythelegislature?


http://www.internationalbudget.org/opening-budgets/citizens-budgets

Answer:19/12/2017

Source:RepublicActNo.10964,GeneralAppropriationsActFY2018,19December2017;https://www.senate.gov.ph/photo_release/2017/1220_01.asp

Comment:



EB-2.WhenistheEBmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanEBtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublic threemonthsafterthebudgetisapprovedbythelegislature.IftheEBisnotreleasedtothepublicatleastthreemonthsafterthebudgetisapprovedbythelegislature,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheEB.

Answer:a.Twoweeksorlessafterthebudgethasbeenenacted

Source:GeneralAppropriationsActFY,2018,28December2017;https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Comment:TheEBwaspublishedinlessthantwoweeksafteritwasenactedintolaw.



EB-3a.IftheEBispublished,whatisthedateofpublicationoftheEB?

Notethatthedateofpublicationisnotnecessarilythesamedatethatisprintedonthedocument.ResearchersshouldrespondtothisquestionifthedocumentispublishedeitherwithinthetimeframeacceptedbytheOBSmethodologyortoolate.


Answer:28/12/2017

Source:DBM,GeneralAppropriationsActFY2018;https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Comment:TheEBwaspublishedwithinthetimeframeacceptedbytheOBSmethodologywhichiswithinthreemonthsafterlegislativeapproval.



EB-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheEB.


Answer:IvisitedtheofficialDBMwebsite.FromtheBudgetDocumentsdrop-downmenu,IscrolledFY2018andclickedontheGeneralAppropriationsActFY2018.Icheckedthedocumentpropertiesofthefileanddeterminedthedateofpublicationtobe28December2017.

Source:DBM,GeneralAppropriationsActFY2018,28December2017;https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Comment:TheEBwaspublishedintheDBMwebsitewithintwoweeksafteritwasenactedintolaw



EB-4.IftheEBispublished,whatistheURLorweblinkoftheEB?


Answer:https://dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Source:DBM,GeneralAppropriationsActFY2018;28December2017;https://dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/gaa-volume-ia-ib

Comment:TheEBispublishedintheofficialDBMwebsite.



EB-5.IftheEBispublished,arethenumericaldatacontainedintheEBavailableinamachinereadableformat?


Option“d”appliesiftheEBisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:a.Yes,allofthenumericaldataareavailableinamachinereadableformat

Source:DBM,GeneralAppropriationsActFY2018,28December2017;https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/gaa-volume-ia-ib

Comment:Thenumericaldataareinmachinereadableformat.



EB-6a.IftheEBisnotpubliclyavailable,isitstillproduced?

IftheEBisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionEB-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionEB-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Comment:Thedocumentispubliclyavailable.

PeerReviewer


Opinion:Agree


ResearcherResponseThereisagreementontheanswer"e".

EB-6b.Ifyouselectedoption“c”or“d”inquestionEB-6a,pleasespecifyhowyoudeterminedwhethertheEBwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionEB-6a,researchersshouldmarkthisquestion“n/a.”

Answer:TheEBisnotproducedatallbecauseithasnotbeenenacted.

Source:JessDiaz,"CongressFailstoPass2019BudgetBill,"ThePhilippineStar,14December2018;https://www.philstar.com/headlines/2018/12/14/1876967/congress-fails-pass-2019-budget-bill

FilaneMikeeCervantes,"2019NationalBudgetGetsBicamNod,PhilippineNewsAgency,8February2019;http://www.pna.gov.ph/articles/1061404

Comment:TheEBisnotreleasedtothepublicbecauseitwasnotenactedontime.The2019NationalBudgetwaspassedbyCongresson6February2019andisawaitingthePresident'ssignature.

PeerReviewerOpinion:DisagreeSuggestedAnswer:theanswerinE-6Ais"e"notapplicable.Comments:ThisgoesbacktoquestionEB-1a--the2019EBwasnotproducedbytheresearchcut-offdateof31December2019,butratherfinallywaspassedinFebruaryandsignedintolawbythePresidentonApril15,2019.Thepreviousquestionsreferredtothe2018EB,thenthisquestionoughttoalso.

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:n/aComments:TheEBdocumentassessedinthisroundisFY2018,notFY2019.SowithreferencetotheFY2018EnactedBudgetdocument,ithasbeenproducedandpubliclyavailable,asalsocitedbytheresearcherinhisanswertoquestionsEB-1to6a,andEB-7.

IBPCommentThankyoutothereviewersforyourresponses.ItiscorrectthattheEBforFY2018wasproducedandreleasedtothepublicon-time.

EB-7.IftheEBisproduced,pleasewritethefulltitleoftheEB.

Forexample,atitlefortheEnactedBudgetcouldbe“AppropriationActn.10of2018.”


Answer:GeneralAppropriationsActFY2018


Comment:TheEBwasproducedandispubliclyavailable.



EB-8.Istherea“citizensversion”oftheEB?


Answer:a.Yes

Source:DBM,2018People'sBudget,5March2018;https://www.dbm.gov.ph/index.php/budget-documents/2018/2018-people-s-budget/2018-people-s-budget

Comment:TheCitizensBudgetoftheEBwasreleasedtothepublicmolaterthanthreemonthsafterthelegislativeapprovalofthebudget.



CB-1.WhatisthefiscalyearoftheCBevaluatedinthisOpenBudgetSurveyquestionnaire?


IfmorethanoneCitizensBudgetisproduced,foreachCBpleaseindicatethedocumenttheCBsimplifies/refersto,andthefiscalyear.

Answer:FY2019

Source:DBM,2019People'sProposedBudget,23August2018;https://www.dbm.gov.ph/index.php/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2

Comment:The2019People'sProposedBudgetisthemostrecentlyreleasedversionoftheCB.ItsimplifiestheExecutive'sBudgetProposalforFY2019.




CB-2a.ForthefiscalyearindicatedinCB-1,whatisthepublicavailabilitystatusoftheCB.

IfmorethanoneCitizensBudgetisproduced,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocument(Executive’sBudgetProposalorEnactedBudget)youarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditspublicavailabilitystatus.

RememberthatpubliclyavailablebudgetdocumentsaredefinedasthosedocumentsthatarepublishedonthewebsiteofthepublicauthorityissuingthedocumentwithinthetimeframespecifiedbytheOBSmethodologyandthatallcitizensareabletoobtainfreeofcharge.ThisisachangefrompreviousroundsoftheOpenBudgetSurvey:nowatminimumdocumentsmustbemadeavailableontheInternetandfreeofchargetobeconsideredpubliclyavailable.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodologyOption“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.



Comment:TheCBreferredhereisfortheExecutive'sBudgetProposal.

AnotherCBdocumentthatispubliclyavailableisforthePre-BudgetStatement.DBM,Brieferonthe2019BudgetPrioritiesFramework,20April2018;https://www.dbm.gov.ph/images/pdffiles//2019-Budget-Priorities-Framework-Final.pdf



CB-2b.Ifyouselectedoption“c”or“d”inquestionCB-2a,pleasespecifyhowyoudeterminedwhethertheCBwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionCB-2a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



CB-3a.IftheCBispublished,whatisthedateofpublicationoftheCB?


Pleaseenterthedateinthefollowingformat:“DD/MM/YYYY.”Forexample,5September2018shouldbeenteredas05/09/2018.Ifthedocumentisnotpublishedornotproduced,leavethisquestionblank.IfmorethanoneCitizensBudgetispublished,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditsdatesofpublication.

Answer:23/8/2018


Comment:



CB-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheCB.


Answer:IvisitedtheofficialDBMwebsite.FromtheBudgetDocumentsdrop-downmenu,Iclickedonthe2019People'sProposedBudgetlink.OnceI'minthefile,IcheckedtheDocumentPropertieswhichindicatedthedateofpublication.


Comment:



CB-4.IftheCBispublished,whatistheURLorweblinkoftheCB?


IfmorethanoneCitizensBudgetispublished,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedanditsURLorweblink.

Answer:https://www.dbm.gov.ph/index.php/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2


Comment:



CB-5.IftheCBisproduced,pleasewritethefulltitleoftheCB.

Forexample,atitlefortheCitizensBudgetcouldbe“Budget2018People’sGuide”or“2019ProposedBudgetinBrief:APeople’sBudgetPublication.”


IfmorethanoneCitizensBudgetisproduced,fortheotherCB,indicatethedocumenttheCBreferstoand,nexttoit,itsfulltitle.

Answer:2019People'sProposedBudget


Comment:



CB-6.IftheCBisproduced,pleaseindicatewhichbudgetdocumentitcorrespondsto.

IfmorethanoneCitizensBudgetisproduced,pleasecompletethisquestionforoneofthem,specifyinginthecommentboxbelowwhichdocumentyouarereferringto,and–inthesamecommentbox–whichotherCitizensBudgetisproducedandwhichbudgetdocumentitsimplifies.

Answer:Executive'sBudgetProposal


Comment:TheotherCBwhichisaBrieferonthe2019BudgetPrioritiesFrameworkcorrespondstothePre-BudgetStatement.



IYRs-1.WhatisthefiscalyearoftheIYRsevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2017-18

Source:DBM,ReportonUtilizationofCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUsFY2018;https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization

Comment:TheIYRsforFY2017-18representthemostrecentlyreleasedversionofthebudgetdocument.



IYRs-2.WhenaretheIYRsmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforIYRstobeconsideredpubliclyavailable,IYRsmustbemadeavailabletothepublicnolaterthanthreemonthsafterthereportingperiodends.Ifatleastsevenofthelast12monthlyIYRs,oratleastthreeofthelastfourquarterlyIYRsarenotreleasedtothepublicatleastthreemonthsafterthereportingperiodends,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheIYRs.

Answer:a.Atleasteverymonth,andwithinonemonthoftheperiodcovered

Source:DBM,ReportonUtilizationofCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUsFY2018;https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization

DBM,NGDisbursementPerformancehttps://www.dbm.gov.ph/index.php/dbcc-matters/reports/ng-disbursement-performance/800-2018-ng-disbursement-performancehttps://www.dbm.gov.ph/index.php/dbcc-matters/reports/ng-disbursement-performance/416-2017-ng-disbursement-performance

DBM,StatementofAllotment,ObligationandBalanceshttps://www.dbm.gov.ph/index.php/programs-projects/statement-of-allotment-obligation-and-balances#saob-fy-2018

Treasury,CashOperationsStatement,updatedmonthlyhttp://www.treasury.gov.ph/?page_id=4221

Comment:



IYRs-3a.IftheIYRsarepublished,whatarethedatesofpublicationoftheIYRs?

Specifically:ifquarterlyIn-YearReportsarepublished,indicatethedatesofpublicationofatleastthreeofthelastfourIYRsthatwerepubliclyavailable.IfmonthlyIYRsarepublished,indicatethedatesofpublicationofatleastsevenofthelast12IYRsthatwerepubliclyavailable.


Pleaseenterthedateinthefollowingformat:“DDMonthYYYY.”Forexample,5September2018shouldbeenteredas05September2018.Ifthedocumentisnotpublishedornotproduced,pleasemarkthisquestion“n/a.”

Answer:StatusOfNCAUtilization(ReportonUtilizationofCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUsFY2018)

StatusofNCAUtilizationasofAugust31,2018-13September2018asofJuly31,2018-14August2018asofJune30,2018-05July2018asofMay31,2018-19September2018asofApril30,2018-09May2018asofMarch31,2018-19September2018asofFebruary28,2018-09March2018

Source:DBM,https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization#2018

Comment:ThemonthlyreportforNovember2018waspubliclyavailableonlineon12December2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1309-2018-status-of-nca-utilization-as-of-november-2018

ThemonthlyreportforOctober2018waspubliclyavailableonlineon15November2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1276-2018-status-of-nca-utilization-as-of-october-2018

ThemonthlyreportforSeptember2018waspubliclyavailableonlineon12October2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1238-2018-status-of-nca-utilization-as-of-september-2018

ThemonthlyreportforAugust2018waspubliclyavailableonlineon19September2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1207-2018-status-of-nca-utilization-as-of-august-2018

ThemonthlyreportforJuly2018waspubliclyavailableonlineon15August2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1150-2018-status-of-nca-utilization-as-of-july-2018

ThemonthlyreportforJune2018waspubliclyavailableonlineon16August2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1105-2018-status-of-disbursement-as-of-june-2018

ThemonthlyreportforMay2018waspublishedlateon18September2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1031-2018-status-of-nca-utilization-as-of-may-2018

ThemonthlyreportforApril2018waspubliclyavailableonlineon16July2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/967-2018-status-of-nca-utilization-as-of-april-2018

ThemonthlyreportforMarch2018waspublishedlateon4September2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/792-2018-status-of-disbursement-as-of-march-2018

ThemonthlyreportforFebruary2018waspubliclyavailableonlineon8March2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/714-2018-status-of-disbursement-as-of-february-2018

ThemonthlyreportforJanuary2018waspubliclyavailableonlineon10February2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/596-2018-status-of-disbursement-as-of-january-31-2018

ThemonthlyreportforDecember2017waspubliclyavailableonlineon16January2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/215-dbm-releases/2017-status-of-nca-utilization/461-2017-status-of-nca-utilization-as-of-december-2017



IYRs-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheIYRs.


Answer:IvisitedtheDBMwebsite.FromtheDBMReleasesdrop-downmenu,IchosetheStatusofNCAUtilization(IYR).IdownloadedthemonthlyIYRsfor2018anddeterminedthedateofpublicationbyexaminingthedocumentpropertiesandcreationdate.

Source:DBM,StatusofNCAUtilization;https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization#2018

Comment:



IYRs-4.IftheIYRsarepublished,whatistheURLorweblinkoftheIYRs?


ResearchersshouldprovidetheweblinktothemostrecentIn-YearReportinthespacebelow,and–inthecommentboxunderneath–theweblinkstoolderIYRs.

Ifthedocumentisnotpublishedatall,researchersshouldleavethisquestionblank.

Answer:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization#2018


ThemonthlyreportforNovember2018waspubliclyavailableonlineon12December2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1309-2018-status-of-nca-utilization-as-of-november-2018

ThemonthlyreportforOctober2018waspubliclyavailableonlineon15November2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1276-2018-status-of-nca-utilization-as-of-october-2018

ThemonthlyreportforSeptember2018waspubliclyavailableonlineon12October2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1238-2018-status-of-nca-utilization-as-of-september-2018

ThemonthlyreportforAugust2018waspubliclyavailableonlineon19September2018at:https://www.dbm.gov.ph/index.php/programs-

projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1207-2018-status-of-nca-utilization-as-of-august-2018

ThemonthlyreportforJuly2018waspubliclyavailableonlineon15August2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1150-2018-status-of-nca-utilization-as-of-july-2018

ThemonthlyreportforJune2018waspubliclyavailableonlineon16August2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1105-2018-status-of-disbursement-as-of-june-2018

ThemonthlyreportforMay2018waspublishedlateon18September2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1031-2018-status-of-nca-utilization-as-of-may-2018

ThemonthlyreportforApril2018waspubliclyavailableonlineon16July2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/967-2018-status-of-nca-utilization-as-of-april-2018

ThemonthlyreportforMarch2018waspublishedlateon4September2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/792-2018-status-of-disbursement-as-of-march-2018

ThemonthlyreportforFebruary2018waspubliclyavailableonlineon8March2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/714-2018-status-of-disbursement-as-of-february-2018

ThemonthlyreportforJanuary2018waspubliclyavailableonlineon10February2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/596-2018-status-of-disbursement-as-of-january-31-2018

ThemonthlyreportforDecember2017waspubliclyavailableonlineon16January2018at:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/215-dbm-releases/2017-status-of-nca-utilization/461-2017-status-of-nca-utilization-as-of-december-2017

Treasury,CashOperationsStatement,updatedmonthlyhttp://www.treasury.gov.ph/?page_id=4221

ThemonthlyreportforSeptember2018waspubliclyavailableonlineon22October2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/10/CORrevopen.pdfThemonthlyreportforAugust2018waspubliclyavailableonlineon24September2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/09/CORrevopen.pdfThemonthlyreportforJuly2018waspubliclyavailableonlineon22August2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/08/COR_revenue_monthly_open-1.pdfThemonthlyreportforJune2018waspubliclyavailableonlineon23July2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/07/COR_revenue_mo_open.pdfThemonthlyreportforMay2018waspubliclyavailableonlineon25June2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/06/COR-Summary_open.pdfThemonthlyreportforApril2018waspubliclyavailableonlineon24May2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/05/COR-Summary_open.pdfThemonthlyreportforMarch2018waspubliclyavailableonlineon11April2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/04/COR-Summary_open.pdfThemonthlyreportforFebruary2018waspubliclyavailableonlineon22March2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/03/COR-Summary_open.pdfThemonthlyreportforJanuary2018waspubliclyavailableonlineon26February2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/02/COR-Summary_open.pdfThemonthlyreportforDecember2017waspubliclyavailableonlineon15January2018at:http://www.treasury.gov.ph/wp-content/uploads/2018/01/COR-Summary_open.pdf

Comment:NGDisbursementPerformance:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/ng-disbursement-performance

ThemonthlyreportforSeptember2018waspublishedlateon10January2019at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/September_2018_in%20billions.pdfThemonthlyreportforAugust2018waspubliclyavailableonlineon3November2018at:https://www.dbm.gov.ph/images/banners/August-2018-Table_in-billions.pdfThemonthlyreportforJuly2018waspubliclyavailableonlineon12September2018at:https://www.dbm.gov.ph/images/pdffiles/July-2018-Assessment_for-posting.pdfThemonthlyreportforJune2018waspubliclyavailableonlineon29July2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/JUNE-2018-Assessment-Table_in-billions.pdfThemonthlyreportforMay2018waspubliclyavailableonlineon2July2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/Assessment-Table_May-2018.pdfThemonthlyreportforApril2018waspubliclyavailableonlineon30May2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/April%202018%20Assessment_for%20posting.pdfThemonthlyreportforMarch2018waspubliclyavailableonlineon25April2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/March%202018%20Assessment_in%20billions.pdfThemonthlyreportforFebruary2018waspubliclyavailableonlineon25April2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2018/February%202018%20Assessment_for%20posting.pdfThemonthlyreportforJanuary2018wasnotpublishedbytheOBSresearchcut-offdate.ThemonthlyreportforDecember2017waspubliclyavailableonlineon11March2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2017/Highlights-of-NG-Disbursements_as-of-December-2017_for-posting.pdfThemonthlyreportforNovember2017waspubliclyavailableonlineon2January2018at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2017/November%202017%20Disbursements_in%20billions.pdfThemonthlyreportforOctober2017waspubliclyavailableonlineon5December2017at:https://www.dbm.gov.ph/wp-content/uploads/DBCC/2017/October%202017%20Assessment_for%20posting.pdf

DBM,StatementofAllotment,ObligationandBalanceshttps://www.dbm.gov.ph/index.php/programs-projects/statement-of-allotment-obligation-and-balances#saob-fy-2018

ThequarterlyreportforSeptember2018waspubliclyavailableonlineon13November2018at:https://www.dbm.gov.ph/wp-content/uploads/e-Fund_Releases/SAOB2018/3rdQuarter/Q3_SAAODB-Updated_Nov._7,_2018-SUMMARY.pdfThequarterlyreportforJune2018waspubliclyavailableonlineon23August2018at:https://www.dbm.gov.ph/wp-content/uploads/e-Fund_Releases/SAOB2018/2ndQuarter/2018_SAAODB-Q2--By_Department.pdfThequarterlyreportforMarch2018waspubliclyavailableonlineon31May2018at:https://www.dbm.gov.ph/wp-content/uploads/e-Fund_Releases/SAOB2018/1stQuarter/2018%20SAAODB-Q1-SUMMARY.pdfThequarterlyreportforDecember2017waspubliclyavailableonlineon16March2018at:https://www.dbm.gov.ph/wp-content/uploads/e-Fund_Releases/SAOB2017/4thQuarter/2017%20SAAODB-SUMMARY-Q4-As%20of%20March%2014,%202018%20submissions.pdf



IYRs-5.IftheIYRsarepublished,arethenumericaldatacontainedintheIYRsavailableinamachinereadableformat?


Option“d”appliesiftheIYRsarenotpublishedornotproduced,thereforetheirmachinereadabilitycannotbeassessed.

Answer:a.Yes,allofthenumericaldataareavailableinamachinereadableformat


Comment:



IYRs-6a.IftheIYRsarenotpubliclyavailable,aretheystillproduced?

IftheIYRsarenotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionIYRs-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionIYRs-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.

Ifadocumentisnotreleasedtothepublic,researchersmayneedtowritetoorvisittherelevantgovernmentofficeinordertodeterminewhetheranswer“c”or


“d”applies.



Comment:



IYRs-6b.Ifyouselectedoption“c”or“d”inquestionIYRs-6a,pleasespecifyhowyoudeterminedwhethertheIYRswereproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionIYRs-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



IYRs-7.IftheIYRsareproduced,pleasewritethefulltitleoftheIYRs.

Forexample,atitlefortheIn-YearReportcouldbe“BudgetMonitoringReport,Quarter1”or“BudgetExecutionReportJanuary-March2018.”

IfIn-YearReportsarenotproducedatall,researchersshouldmarkthisquestion“n/a.”

ResearchersshouldprovidethefulltitleofthemostrecentIn-YearReportinthespacebelow,and–inthecommentboxunderneath–thefulltitlesofolderIYRs.

Answer:ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofAugust31,2018


Comment:ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofJuly31,2018ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofJune30,2018ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofMay31,2018ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofApril30,2018

ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofMarch31,2018ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofFebruary28,2018ReportontheUtilizationorCashAllocationforNationalGovernmentAgencies,BudgetarySupporttoGOCCsandLGUs,asofJanuary31,2018



IYRs-8.Istherea“citizensversion”oftheIYRs?


Answer:b.No

Source:

Comment:



MYR-1.WhatisthefiscalyearoftheMYRevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2018

Source:DBM,Mid-YearReportonthe2018NationalBudget,28September2018;https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report

Comment:




MYR-2.WhenistheMYRmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanMYRtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublic nolaterthanthreemonthsafterthereportingperiodends(i.e.,threemonthsafterthemidpointofthefiscalyear).IftheMYRisnotreleasedtothepublicatleastthreemonthsafterthereportingperiodends,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheMYR.

Answer:c.Morethannineweeks,butlessthanthreemonths,afterthemidpoint

Source:DevelopmentBudgetCoordinationCommittee,Mid-YearReportonthe2018NationalBudget,28September2018;https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report

Comment:



MYR-3a.IftheMYRispublished,whatisthedateofpublicationoftheMYR?




Answer:28/9/2018


Comment:



MYR-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheMYR.


Answer:IvisitedtheDBMwebsite.FromtheDBCCMattersdrop-downmenu,IchoseReportsandthenclickedontheMid-YearReportonthe2018NationalBudget.IcheckedthedocumentpropertiesandcreationdateoftheMYR.


Comment:



MYR-4.IftheMYRispublished,whatistheURLorweblinkoftheMYR?


Answer:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report

Source:DevelopmentBudgetCoordinationCommittee,Mid-YearReportonthe2018NationalBudget,28September2018:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report

Comment:TheMid-YearReportwaspublishedonSeptember28,2018.



MYR-5.IftheMYRispublished,arethenumericaldatacontainedintheMYRavailableinamachinereadableformat?

Material(dataorcontent)ismachinereadableifitisinaformatthatcanbeeasilyprocessedbyacomputer,suchas.csv,.xls/.xlsx,and.json.NumericaldatafoundinPDFsandWord(.doc/.docx)filesdonotqualifyasmachinereadable.Seemoreat:http://opendatahandbook.org/glossary/en/terms/machine-readable/.

Option“d”appliesiftheMYRisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No

Source:DevelopmentBudgetCoordinationCommittee,Mid-YearReportonthe2018NationalBudget;28September2018;https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report

Comment:




MYR-6a.IftheMYRisnotpubliclyavailable,isitstillproduced?

IftheMYRisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionMYR-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionMYR-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Comment:



MYR-6b.Ifyouselectedoption“c”or“d”inquestionMYR-6a,pleasespecifyhowyoudeterminedwhethertheMYRwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionMYR-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:


GovernmentReviewer

Opinion:

MYR-7.IftheMYRisproduced,pleasewritethefulltitleoftheMYR.

Forexample,atitlefortheMid-YearReviewcouldbe“Semi-annualBudgetPerformanceReport,FY2017/18”or“Mid-YearReportonthe2018NationalBudget.”


Answer:Mid-YearReportonthe2018NationalBudget


Comment:



MYR-8.Istherea“citizensversion”oftheMYR?


Answer:b.No

Source:

Comment:



YER-1.WhatisthefiscalyearoftheYERevaluatedinthisOpenBudgetSurveyquestionnaire?



Answer:FY2017

Source:DevelopmentBudgetCoordinationCommittee,FY2017AnnualFiscalReport,16August2018;https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:



YER-2.WhenistheYERmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanYERtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicnolaterthanoneyearafterthefiscalyeartowhichitcorresponds.IftheYERisnotreleasedtothepublicwithinoneyearaftertheendofthefiscalyeartowhichitcorresponds,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheYER.

Answer:b.Ninemonthsorless,butmorethansixmonths,aftertheendofthebudgetyear


Comment:Afinancialstatementisalsoreleasedonbudgetexecution.FY2017AnnualFinancialReportforNationalGovernment,Vol.I-II:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017,25October2018



YER-3a.IftheYERispublished,whatisthedateofpublicationoftheYER?



Answer:16/8/2018


Comment:



YER-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheYER.


Answer:IvisitedtheofficialDBMwebsite.FromtheDBCCMattersdrop-downmenu,IchoseReportsandclickedAnnualFiscalReport.IdownloadedFY2017AnnualFiscalReportandfromthedocumentproperties,IdeterminedthecreationdateasthedateofpublicationoftheYER.

Source:DBM,FY2017AnnualFiscalReport,16August2018;https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:



YER-4.IftheYERispublished,whatistheURLorweblinkoftheYER?


Answer:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf


Comment:Afinancialstatementisalsoreleasedonbudgetexecution.FY2017AnnualFinancialReportforNationalGovernment,Vol.I-II:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017,25October2018



YER-5.IftheYERispublished,arethenumericaldatacontainedintheYERavailableinamachinereadableformat?


Option“d”appliesiftheYERisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No


Comment:



YER-6a.IftheYERisnotpubliclyavailable,isitstillproduced?

IftheYERisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionYER-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionYER-2)Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.




Comment:




YER-6b.Ifyouselectedoption“c”or“d”inquestionYER-6a,pleasespecifyhowyoudeterminedwhethertheYERwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionYER-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



YER-7.IftheYERisproduced,pleasewritethefulltitleoftheYER.

Forexample,atitlefortheYear-EndReportcouldbe“ConsolidatedFinancialStatementfortheYearEnded31March2018”or“AnnualReport2017PublishedbytheMinistryofFinanceandPlanning.”Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:FY2017AnnualFiscalReport


Comment:



YER-8.Istherea“citizensversion”oftheYER?


Answer:b.No

Source:


DBM,2019People'sBudget

Comment:



ResearcherResponseThereisagreementthatthereisnocitizensversionoftheYER.

AR-1.WhatisthefiscalyearoftheARevaluatedinthisOpenBudgetSurveyquestionnaire?


Answer:FY2017

Source:CommissiononAudit(COA),FY2017AnnualFinancialReportfortheNationalGovernment,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017#

Comment:



ResearcherResponseThereisagreementthatFY2017istheappropriateanswer.

AR-2.WhenistheARmadeavailabletothepublic?


TheOBSmethodologyrequiresthatforanARtobeconsideredpubliclyavailable,itmustbemadeavailabletothepublicnolaterthan18monthsaftertheendofthefiscalyeartowhichitcorresponds.IftheARisnotreleasedtothepublicatleast18monthsaftertheendofthefiscalyeartowhichitcorresponds,option“d”applies.Option“d”shouldalsobechosenfordocumentsthatareproducedforinternalpurposesonly(thatis,producedbutneverreleasedtothepublic)orarenotproducedatall.Somegovernmentsmaypublishbudgetdocumentsfurtherinadvancethanthelatestpossibledatesoutlinedabove.Intheseinstances,researchersshouldchooseoptions“a”or“b,”dependingonthedateofpublicationidentifiedfortheAR.

Answer:b.12monthsorless,butmorethansixmonths,aftertheendofthebudgetyear

Source:COA,FY2017AnnualFinancialReportfortheNationalGovernment,Vol.I-II,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017#

Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.SixmonthsorlessaftertheendofthebudgetyearComments:TheFY2017AnnualAuditReports(AARs)ofNationalGovernmentAgenciesarethedocumentsthatmustbeassessedforallquestionsregardingtheAuditReport.ItshallbenotedthattheAnnualFiscalReportjustthesummaryoftheAARs.AllAARsofNationalGovernmentAgenciesarereleasednotlaterthanJune30orwithinsixmonthsaftertheendofthefiscalyear.SomeAARsarepublishedintheCOAwebsitewithinsixmonthsaftertheendofthebudgetyear:1.DepartmentofEnergy,publishedMay24,2018https://www.coa.gov.ph/index.php/national-government-agencies/2017/category/6873-department-of-energy2.DepartmentofJustice,publishedMay24,2018https://www.coa.gov.ph/index.php/national-government-agencies/2017/category/6822-department-of-justice3.DepartmentofNationalDefense,publishedMay11,2018https://www.coa.gov.ph/index.php/national-government-agencies/2017/category/6823-department-of-national-defense

ResearcherResponseTheAARfortheDepartmentofAgrarianReformwaspublishedonOctober15,2018ormorethansixmonthsaftertheendofthebudgetyear.https://www.coa.gov.ph/index.php/national-government-agencies/2017/category/7174-department-of-agrarian-reform

AR-3a.IftheARispublished,whatisthedateofpublicationoftheAR?



Answer:25/10/2018


Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:TheFY2017AnnualAuditReports(AARs)ofNationalGovernmentAgenciesarethedocumentsthatmustbeassessedforallquestionsregardingtheAuditReport.ItshallbenotedthattheAnnualFiscalReportisjustthesummaryoftheAARs.AllAARsofNationalGovernmentAgenciesarereleasednotlaterthanJune30orwithinsixmonthsaftertheendofthefiscalyear.Weblink:https://www.coa.gov.ph/index.php/national-government-agencies/2017

IBPCommentThankyoutotheGovernmentReviewerforthecomment.PleaseseetheresponseinAR-2.

AR-3b.Intheboxbelow,pleaseexplainhowyoudeterminedthedateofpublicationoftheAR.


Answer:IvisitedtheofficialCOAwebsite.FromtheReportdrop-downmenu,IchoseAnnualFinancialReportsandthenclickedNationalGovernmentAgenciesandFY2017.


Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:TheFY2017AnnualAuditReports(AARs)ofNationalGovernmentAgenciesarethedocumentsthatmustbeassessedforallquestionsregardingtheAuditReport.ItshallbenotedthattheAnnualFiscalReportisjustthesummaryoftheAARs.Weblink:https://www.coa.gov.ph/index.php/national-government-agencies/2017

IBPCommentThankyoutothegovernmentreviewerfortheircomment.PleaserefertotheresponsestoAR-2andAR-3a.

AR-4.IftheARispublished,whatistheURLorweblinkoftheAR?


Answer:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Source:COA,FY2017AnnualFinancialReport,Vol.I-II,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:https://www.coa.gov.ph/index.php/national-government-agencies/2017Comments:TheFY2017AnnualAuditReports(AARs)ofNationalGovernmentAgenciesarethedocumentsthatmustbeassessedforallquestionsregardingtheAuditReport.ItshallbenotedthattheAnnualFiscalReportisjustthesummaryoftheAARs.

IBPCommentThankyoutothegovernmentreviewerfortheircomment.PleaserefertotheresponsestoAR-2andAR-3a.

AR-5.IftheARispublished,arethenumericaldatacontainedintheARavailableinamachinereadableformat?


Option“d”appliesiftheARisnotpublishedornotproduced,thereforeitsmachinereadabilitycannotbeassessed.

Answer:c.No


Source:COA,FY2017AnnualFinancialReport,Vol.I-II,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Comment:



AR-6a.IftheARisnotpubliclyavailable,isitstillproduced?

IftheARisnotconsideredpubliclyavailableundertheOBSmethodology(andthustheanswertoQuestionAR-2was“d”),agovernmentmaynonethelessproducethedocument.

Option“a”appliesifthedocumentisproducedandmadeavailabletothepubliconlinebutnotwithinthetimeframespecifiedintheOBSmethodology(seeQuestionAR-2).Option“b”appliesifthedocumentisproducedandmadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologybutonlyinhardcopy(andisnotavailableonline).Option“b”alsoappliesifthedocumentismadeavailabletothepublicwithinthetimeframespecifiedbytheOBSmethodologyinsoftelectroniccopybutisnotavailableonline.Option“c”appliesifthedocumentisproducedforinternalpurposesonlyandsoisnotmadeavailabletothepublic.Option“d”appliesifthedocumentisnotproducedatall.Option“e”appliesifthedocumentispubliclyavailable.



Source:COA,FY2017AnnualFinancialReportfortheNationalGovernment,Vol.I-II,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Comment:



AR-6b.Ifyouselectedoption“c”or“d”inquestionAR-6a,pleasespecifyhowyoudeterminedwhethertheARwasproducedforinternaluseonly,versusnotproducedatall.

Ifoption“a,”“b,”or“e”wasselectedinquestionAR-6a,researchersshouldmarkthisquestion“n/a.”

Answer:

Source:

Comment:



AR-7.IftheARisproduced,pleasewritethefulltitleoftheAR.

Forexample,atitlefortheAuditReportcouldbe“AnnualGeneralReportsoftheControllerandAuditorGeneral.”Ifthedocumentisnotproducedatall,researchersshouldmarkthisquestion“n/a.”

Answer:FY2017AnnualFinancialReportfortheNationalGovernment

Source:COA,FY2017AnnualFinancialReportfortheNationalGovernment,Vol.I-II,25October2018;https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Comment:



AR-8.Istherea“citizensversion”oftheAR?


Answer:b.No

Source:https://www.coa.gov.ph/index.php

Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.YesComments:TheCommissiononAuditpublishesanAudit-in-BriefofthereportontheCitizens'ParticipatoryAudit.Weblink:https://cpa.coa.gov.ph/cpa-wash-cagayan-de-oro-2017/

ResearcherResponseTherevisedansweris"Yes".TheCommissiononAuditpublishesanAudit-in-BriefofthereportontheCitizens'ParticipatoryAudit.


https://cpa.coa.gov.ph/cpa-wash-cagayan-de-oro-2017/

IBPCommentThelinkprovidedbythegovernmentreviewerisnoted,asistheresearcher'sconfirmationthatthisisaCBofanauditreport.However,asinthisquestiontheAuditReportrefersspecificallytotheauditofthewhole-of-governmentfinancialaccounts,thisauditofaWASHreportdoesnotqualifyforthisquestion.TheoriginalscoreofBismaintained.

GQ-1a.Arethereoneormorewebsitesorwebportalsfordisseminatinggovernmentfiscalinformation?Ifyes,pleaseprovidethenecessarylinksinthecomment/citation.

GQ-1aaskstheresearchertolistanygovernmentwebsitesorportalswherefiscalinformationcanbefound.Forexample,inNewZealandtheTreasurywebsite(http://www.treasury.govt.nz/)hostsimportantbudget-relatedinformation,includingthePre-BudgetStatement,theExecutive’sBudgetProposal,theCitizensBudget,In-YearReports,theMid-YearReview,andtheYear-EndReport.Inaddition,NewZealand’sParliamentaryCounselOffice(http://www.legislation.govt.nz/)poststheEnactedBudgetwhiletheControllerandAuditor-Generalwebsite(http://www.oag.govt.nz/)publishestheannualAuditReport.TheNewZealandresearcherwouldprovidethelinkstoeachofthesesites.Othercountrieshavedevelopedportalsthatincludefiscalinformation,thoughnotinthe“documents”format.Forexample,theseportalshavebeencreatedbyMexico(https://www.transparenciapresupuestaria.gob.mx/)andBrazil(http://www.portaltransparencia.gov.br/).Somecountrieshavebothawebsiteandaportal.TheBraziliangovernment,forexample,apartfromtheTransparencyPortal,hasadedicatedwebsiteforthefederalbudget,whereallkeydocumentsandotherinformationcanbefound(www.orcamentofederal.gov.br).Researchersshouldincludedetailsaboutalloftherelevantwebsitesand/orportalsthattheycanbeusedtoaccessbudgetinformation.

Answer:a.Yes

Source:DepartmentofBudgetandManagementwebsite:https://www.dbm.gov.ph/CommissiononAuditwebsite:https://www.coa.gov.ph/index.php/BureauofTreasurywebsite:http://www.treasury.gov.ph/DepartmentofFinancewebsite:https://www.dof.gov.ph/

Comment:Thereareseveralwebsitesfordisseminatinggovernmentfiscalinformation.



GQ-1b.Onthesewebsites/portals,canrevenueand/orexpendituredataforthecurrentfiscalyearbedownloadedasaconsolidatedfile(orsetoffiles)?Ifyes,pleaseprovidethenecessarylinksinthecomment/citation.

GQ-1b,GQ-1c,andGQ-1daskaboutwhethergovernmentspublishspecifictypesofcontentontheirwebsites/portals:(a)consolidatedfilesthatcontainrevenueand/orexpenditureinformationforthecurrentfiscalyear;(b)consolidatedfilesthatcontainrevenueand/orexpenditureinformationformultipleyearsinconsistentformats;and(c)infographics/visualizationsorothersimilartoolsusedtosimplifydataaccessandanalysis.Researchersshouldprovidethelinkstorelevantwebpagesandsomeexplanationsofwhattheycontain.

Answer:a.Yes,bothrevenueandexpendituredatacanbedownloadedasaconsolidatedfile

Source:BudgetofExpendituresandSourcesofFinancingFY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019

BESF(multipleyears):https://www.dbm.gov.ph/index.php/dbm-publications/budget-of-expenditures-and-sources-of-financing-besf

2019People'sProposedBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2

http://www.treasury.govt.nz/

http://www.legislation.govt.nz/

http://www.oag.govt.nz/

https://www.transparenciapresupuestaria.gob.mx/

http://www.portaltransparencia.gov.br/

http://www.orcamentofederal.gov.br

http://www.dbm.gov.ph/wp-content/uploads/NEP%202019/NEP-2019.xls

Comment:TheBudgetofExpendituresandSourcesofFinancing(BESF)FY2019containsconsolidatedfilesonrevenueandexpenditureinformationforthecurrentfiscalyear.TheBESFcontainsconsolidatedfilesofrevenueandexpenditureinformationformultipleyearsinconsistentformats.ThegovernmentalsopublishestheCitizensBudgetthatcontainsinfographics/visualizationsandothertoolstosimplifydataaccessandanalysis.



GQ-1c.Onthesewebsites/portals,canconsolidatedrevenueand/orexpendituredatabedownloadedformultipleyearsinconsistentformats?Ifyes,pleaseprovidethenecessarylinksanddetailsinthecomment/citation.

Answer:a.Yes,bothrevenueandexpendituredatacanbedownloadedformultipleyearsinconsistentformats

Source:BudgetofExpendituresandSourcesofFinancing(BESF,multipleyears):https://www.dbm.gov.ph/index.php/dbm-publications/budget-of-expenditures-and-sources-of-financing-besf

Comment:BothrevenueandexpendituredataarefoundintheBESFthatcanbedownloadedformultipleyearsinconsistentformats.



GQ-1d.Onthesewebsites/portals,areinfographics/visualizationsorothersimilartoolsusedtosimplifydataaccessandanalysis?Ifyes,pleaseprovidethenecessarylinksanddetailsinthecomment/citation.

Answer:a.Yes

Source:2019People'sProposedBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2

Comment:ThegovernmentpublishestheCitizensBudgetthatcontainsinfographics/visualizationsandothertoolstosimplifydataaccessandanalysis.



GQ-2.Aretherelawsinplaceguidingpublicfinancialmanagementand/orauditing?Ifyes,pleaseprovidethenecessarydetailsandlinksinthecomment/citation,andspecifywhetherandwherethelaw(s)containsspecificprovisionsforbudgettransparencyand/orparticipation.

GQ-2asksabouttheexistenceofanynationallawsgoverningpublicfinancialmanagementandauditing.Thesemayincludeapublicfinanceact,asectionoftheconstitution,oranorganicbudgetlaw.Insomecountries,fiscalresponsibilitylegislationmayalsoberelevant.Forexample,theKenyaresearchermayincludethelinktoitsPublicFinanceManagementAct,2012(http://www.kenyalaw.org/lex//actview.xql?actid=No.%2018%20of%202012),andtheMacedonianresearchermayincludealinktoitsStateAuditLaw(https://www.finance.gov.mk/files/u11/Audit%20law.pdf).Researchersshouldprovidelinkstowebsiteswheresuchlawsarepublished,ifpossible,oranelectroniccopyofthelawitself.Theyshouldalsoindicateifandwhere(e.g.whicharticle)theselawsincludespecificprovisionsforbudgettransparencyandcitizenparticipationinbudgetprocesses.

Answer:a.Yes

Source:RA992ortheRevisedBudgetActof1954:https://thecorpusjuris.com/legislative/republic-acts/ra-no-992.php

PD1177orBudgetReformDecreeof1977:https://www.gppb.gov.ph/laws/laws/PD_1177.pdf

ExecutiveOrderNo.292ortheAdministrativeCodeof1987:https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-s-1987/

RA7160ortheLocalGovernmentCodeof1991:http://www.officialgazette.gov.ph/downloads/1991/10oct/19911010-RA-7160-CCA.pdf

Comment:Therearevariouslawsguidingpublicfinancialmanagementand/orauditing.



GQ-3.Arethereadditionallawsregulating:(1)accesstoinformation;(2)governmenttransparency;or(3)citizensparticipation?Ifyes,pleaseprovidethenecessarydetailsandlinksinthecomment/citation,andspecifywhetherandwheretheselawscontainspecificprovisionsforbudgettransparencyand/orparticipation.

Thethirdandlastquestionasksresearcherstolistanyadditionallawsregulatingaccesstoinformation,transparency,orcitizens’participationthatarerelevantforthepromotionofbudgettransparencyandcitizenparticipationinbudgetprocesses.Thesemightincludelegislationrelatedtoaccesstoinformation,toplanningprocesses,ortopublicadministrationmoregenerally.India’sRighttoInformationActof2005(https://www.ncess.gov.in/facilities/central-public-information-officer/rti-act-details.html)isanexampleofthistypeoflaw.Moreinformationonaccesstoinformationlegislation(constitutionalprovisions,laws,andregulations),includingexamplesofmodellaws,canbefoundhere:http://www.right2info.org/laws/constitutional-provisions-laws-and-regulations#section-1.

Answer:a.Yes

Source:ExecutiveOrderNo.2,seriesof2016(OperationalizationofFreedomofInformationintheExecutiveBranch):https://www.officialgazette.gov.ph/2016/07/23/executive-order-no-02-s-2016/

RA7160ortheLocalGovernmentCodeof1991:http://www.officialgazette.gov.ph/downloads/1991/10oct/19911010-RA-7160-CCA.pdf

ExecutiveOrderNo.9,seriesof2016(CreationoftheOfficeofParticipatoryGovernance):http://www.officialgazette.gov.ph/downloads/2016/12dec/20161201-EO-9-RRD.pdf

AnnualGeneralAppropriationsAct:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018

Comment:Thereareadditionallawsregulatingaccesstoinformation,governmenttransparencyandcitizen’sparticipation.

http://www.kenyalaw.org/lex//actview.xql?actid=No.%2018%20of%202012

https://www.finance.gov.mk/files/u11/Audit%20law.pdf

https://www.ncess.gov.in/facilities/central-public-information-officer/rti-act-details.html

http://www.right2info.org/laws/constitutional-provisions-laws-and-regulations#section-1



1.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearthatareclassifiedbyadministrativeunit(thatis,byministry,department,oragency)?

GUIDELINES:

Question1addressesthepresentationofexpenditurebyadministrativeunit.Thisinformationindicateswhichgovernmententity(ministry,department,oragency,orMDAs)willberesponsibleforspendingthefundsand,ultimately,heldaccountablefortheiruse.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforalladministrativeunits,accountingforallexpenditures,inthebudgetyear.Toanswer“b,”theadministrativeunitsshownindividually,intheExecutive’sBudgetProposaloritssupportingdocumentation,mustaccountforatleasttwo-thirdsofallexpendituresinthebudgetyear.Inotherwords,thesumoftheexpendituresassignedtotheindividualMDAs(education,health,infrastructure,interior,defense,etc.)mustaccountforatleasttwo-thirdsofthetotalexpenditurebudgetedforthatparticularyear.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsadministrativeunitsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyadministrativeunit.

Answer:a.Yes,administrativeunitsaccountingforallexpendituresarepresented.

Source:TableB.2,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages130-254:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B2.pdf

Table1toXXXV,NationalExpenditureProgram(NEP)FY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019

Comment:The2019Executive'sBudgetProposalprovidesexpendituresthatareclassifiedbyadministrativeunits.ThiscanbefoundinTableB.2oftheBESFFY2019.TablesItoXXXVoftheNEPFY2019alsoprovideexpendituresbyadministrativeunits.



2.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearbyfunctionalclassification?

GUIDELINES:

Question2addressesthepresentationofexpenditurebyfunctionalclassification.Thisclassificationindicatestheprogrammaticpurpose,sector,orobjectiveforwhichthefundswillbeused,suchashealth,education,ordefense.Administrativeunitsarenotnecessarilyalignedwithfunctionalclassifications.Forinstance,inonecountryallfunctionsconnectedwithwatersupply(whichfallintothe“Housing”function)maybeundertakenbyasinglegovernmentagency,whileinanothercountrytheymaybedistributedacrosstheMinistriesofEnvironment,Housing,andIndustrialDevelopment.Inthelattercase,threeministrieshaveprogramsaddressingwatersupply,sothreeministriescontributetoonefunction.Similarly,someadministrativeunitsmayconductactivitiesthatcutacrossmorethanonefunction.Forinstance,intheexampleabove,someprogramsoftheMinistryofEnvironmentwouldalsobeclassifiedinthe“environmentalprotection”function.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforthebudgetyearorganizedbyfunctionalclassification.

Answer:a.Yes,expendituresarepresentedbyfunctionalclassification.

Source:TableB.5.a,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages295-305:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B5a.pdf

Comment:The2019Executive'sBudgetProposalpresentsexpendituresbyfunction.ThisclassificationcanbefoundintheBESFFY2019,specificallyinTableB.5.atitled“DetailsofSectoralAllocationofNationalGovernmentExpenditures,FYs2017-2019.”



3.IftheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentsexpendituresforthebudgetyearbyfunctionalclassification,isthefunctionalclassificationcompatiblewithinternationalstandards?

GUIDELINES:

Question3askswhetheracountry’sfunctionalclassificationmeetsinternationalstandards.Toanswer“a,”acountry’sfunctionalclassificationmustbealignedwiththeOECDandtheUN’sClassificationoftheFunctionsofGovernment(COFOG),orprovideacross-walkbetweenthenationalfunctionalpresentationandCOFOG.

TheOECDBestPracticesforBudgetTransparencycanbeviewedathttp://www.oecd.org/gov/budgeting/Best%20Practices%20Budget%20Transparency%20-%20complete%20with%20cover%20page.pdf

COFOGcanbeviewedathttps://unstats.un.org/unsd/publication/SeriesM/SeriesM_84E.pdforathttp://www.imf.org/external/pubs/ft/gfs/manual/pdf/ch6ann.pdf.

Answer:a.Yes,thefunctionalclassificationiscompatiblewithinternationalstandards.

Source:Table2,SectoralAllocationundertheCOFOG,2017-2019,inTechnicalNotesonthe2019ProposedNationalBudget,p.23:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:Table2(page23)presentstheSectoralAllocationundertheCOFOGfor2017-2019.



4.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforthebudgetyearbyeconomicclassification?

GUIDELINES:

Question4askswhethertheExecutive’sBudgetProposaloritssupportingdocumentationpresentsexpendituresforthebudgetyearorganizedbyeconomicclassification.Economicclassificationprovidesinformationonthenatureoftheexpenditure,suchaswhetherfundsarebeingusedtopayforwagesandsalaries,capitalprojects,orsocialassistancebenefits.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforthebudgetyearorganizedbyeconomicclassification.

http://www.oecd.org/gov/budgeting/Best%20Practices%20Budget%20Transparency%20-%20complete%20with%20cover%20page.pdf

https://unstats.un.org/unsd/publication/SeriesM/SeriesM_84E.pdf

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/ch6ann.pdf

Answer:a.Yes,expendituresarepresentedbyeconomicclassification.


Comment:The2019Executive’sBudgetProposalpresentsexpendituresbyeconomicclassification.ThiscanbefoundintheBESFFY2019,specificallyinTableB.1titled“ExpenditureProgram,ByObject,FY2019.”



5.IftheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentsexpendituresforthebudgetyearbyeconomicclassification,istheeconomicclassificationcompatiblewithinternationalstandards?

GUIDELINES:

Question5askswhetheracountry’seconomicclassificationmeetsinternationalstandards.Toanswer“a,”acountry’seconomicclassificationmustbeconsistentwiththeInternationalMonetaryFund’s(IMF)2001GovernmentFinanceStatistics(GFS).TheGFSeconomicclassificationispresentedhere:http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf.TolearnmoreaboutGovernmentFinanceStatisticsalsorefertotheentireIMF2001GFSmanual(http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf).

Answer:b.No,theeconomicclassificationisnotcompatiblewithinternationalstandards,orexpendituresarenotpresentedbyeconomicclassification.


Comment:The2019Executive’sBudgetProposalpresentsexpendituresbyeconomicpurpose.ThiscanbefoundintheBESFFY2019,specificallyinTableB.1titled“ExpenditureProgram,ByObject,FY2019.”Itcategorizesexpendituresbypersonnelexpenses,maintenanceandotheroperatingexpenses,financialexpensesandcapitaloutlays.TheclassificationisnotfullycompatiblewiththestandardssetintheIMF2001GovernmentFinanceStatisticsManualwhichlists8categories.



6.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsforthebudgetyear?

GUIDELINES:

Question6askswhetherexpendituresarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldtreattheterm“program”asmeaninganylevelofdetailbelowanadministrativeunit—thatis,anyprogrammaticgroupingthatisbelowtheministry,department,oragencylevel.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf

Anoteforfrancophonecountries:“Program”leveldetailissometimesreferredtoas leplancomptableorleplancomptabledetaille.(Thesedataaretypicallycodedinthefinancialmanagementdatabase,followingthechartofbudgetaryaccounts,sothattheycanbeorganizedbyadministrativeandfunctionalclassification.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,inthebudgetyear.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresinthebudgetyear.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Budgetdecisionsfortheupcomingyearcanalsoaffecttheparametersoffuturebudgets.Itisthereforeusefultoestimaterevenuesandexpendituresformulti-yearperiods,understandingthattheseestimatesmightberevisedascircumstanceschange.SometimesreferredtoasaMediumTermExpenditureFramework(MTEF),athree-yearperiod—thatis,thebudgetyearplustwomoreyears—isgenerallyconsideredanappropriatehorizonforbudgetingandplanning.

Answer:a.Yes,programsaccountingforallexpendituresarepresented.

Source:NationalExpenditureProgram(NEP)FY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019

TechnicalNotesonthe2019ProposedNationalBudget,page26:https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2019/Technical-Notes-on-the-2019-Proposed-National-Budget.pdf

Comment:TheNEPFY2019presentsexpendituresforallindividualprograms.TheTechnicalNotesonthe2019ProposedNationalBudgetpresentsonpage26howtheSpecialPurposeFundsaretobeusedbyprograms.



7.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpenditureestimatesforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:

Question7asksifmulti-yearexpenditureestimatesarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassificationsforatleasttwoyearsbeyondthebudgetyear.Toanswer“b,”multi-yearexpenditureestimatesmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifmulti-yearexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”appliesifmulti-yearexpenditureestimatesarenotpresentedbyanyofthethreeclassifications.

Answer:c.Yes,multi-yearexpenditureestimatesarepresentedbyonlyoneofthethreeexpenditureclassifications.

Source:TechnicalNotesonthe2019ProposedNationalBudget,p.14:https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2019/Technical-Notes-on-the-2019-Proposed-National-Budget.pdf

Comment:The2019Executive’sBudgetProposal(EBP)anditssupportingdocumentationpresentexpenditureestimatesbyeconomicclassification.ThiscanbefoundinTable7:Medium-TermFiscalProgramintheTechnicalNotesonthe2019ProposedNationalBudget,p.14.



7b.BasedontheresponsetoQuestion7,checkthebox(es)toidentifywhichexpenditureclassificationshaveestimatesforamulti-yearperiodintheExecutive’sBudgetProposal:

Answer:Economicclassification

Source:TechnicalNotesonthe2019ProposedNationalBudget,p.14:https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2019/Technical-Notes-on-the-2019-Proposed-National-Budget.pdf

Comment:The2019Executive’sBudgetProposal(EBP)anditssupportingdocumentationpresentexpenditureestimatesbyeconomicclassification.ThiscanbefoundinTable7:Medium-TermFiscalProgramintheTechnicalNotesonthe2019ProposedNationalBudget,p.14.



8.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpenditureestimatesforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)byprogram?

GUIDELINES:Question8asksifmulti-yearexpenditureestimatesarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,foratleasttwoyearsbeyondthebudgetyear.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresoverthemulti-yearperiod.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsmulti-yearestimatesforprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifmulti-yearestimatesarenotpresentedbyprogram.

Revenuesgenerallyareseparatedintotwomajorcategories:“tax”and“non-tax”revenues.Taxesarecompulsorytransfersthatresultfromgovernmentexercisingitssovereignpower.Thelargestsourcesoftaxrevenueinsomecountriesaretaxesonpersonalandbusinessincomeandtaxesongoodsandservices,suchassalesorvalue-addedtaxes.Thecategoryofnon-taxrevenuesismorediverse,rangingfromgrantsfrominternationalinstitutionsandforeigngovernmentstofundsraisedthroughthesaleofgovernment-providedgoodsandservices.Notethatsomeformsofrevenue,suchascontributionstosocialsecurityfunds,canbeconsideredeitherataxornon-taxrevenuedependingonthenatureoftheapproachtothesecontributions.Particularlybecausedifferentrevenueshavedifferentcharacteristics,includingwhobearstheburdenofpayingthetaxandhowcollectionsareaffectedbyeconomicconditions,itishelpfulwhenestimatesforrevenuesaredisaggregatedanddisplayedbasedontheirsources.

Formoreinformation,pleaserefertothe2001GFSmanual,inparticularAppendix4(http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf).

Answer:d.No,multi-yearestimatesforprogramsarenotpresented.

Source:TableB.5.a,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages295-305:https://www.dbm.gov.ph/wp-

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/app4.pdf

content/uploads/BESF/BESF2019/B5a.pdf

Comment:Multi-yearestimatesarenotpresentedbyprogram.



9.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresenttheindividualsourcesoftaxrevenue(suchasincometaxorVAT)forthebudgetyear?

GUIDELINES:Question9assessesthedegreetowhichtheindividualsourcesof“tax”revenuearedisaggregatedinthebudget.Thelargestsourcesoftaxrevenueinsomecountriesaretaxesonpersonalandbusinessincomeandtaxesongoodsandservices,suchassalesorvalue-addedtaxes.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallindividualsourcesoftaxrevenueforthebudgetyear,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofalltaxrevenue.Toanswer“b,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentindividualsourcesoftaxrevenuethatwhencombinedaccountforatleasttwo-thirdsofalltaxrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsindividualsourcesoftaxrevenuethataccountforlessthantwo-thirdsoftaxrevenues.Answer“d”appliesifindividualsourcesoftaxrevenuearenotpresented.

Answer:a.Yes,individualsourcesoftaxrevenueaccountingforalltaxrevenuearepresented.

Source:TableC.3,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages458-459:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/C3.pdf

Comment:TheExecutive’sBudgetProposalpresentallindividualsourcesoftaxrevenueforthebudgetyear,and“other”or“miscellaneous”revenueaccountforthreepercentorlessofalltaxrevenue.ThiscanbefoundintheBESFFY2019,specificallyTableC.3titled“TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,FY2017-2021.”The"other"revenueaccountsforonly0.7%oftaxes.



10.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresenttheindividualsourcesofnon-taxrevenue(suchasgrants,propertyincome,andsalesofgovernment-producedgoodsandservices)forthebudgetyear?

GUIDELINES:Question10assessesthedegreetowhichtheindividualsourcesof“non-tax”revenuearedisaggregatedinthebudget.Thecategoryofnon-taxrevenuesisdiverse,andcanincluderevenuerangingfromgrantsfrominternationalinstitutionsandforeigngovernmentstofundsraisedthroughthesaleofgovernment-providedgoodsandservices.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallindividualsourcesofnon-taxrevenueforthebudgetyear,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallnon-taxrevenue.Toanswer“b,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentindividualsourcesofnon-taxrevenuethatwhencombinedaccountforatleasttwo-thirdsofallnon-taxrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsindividualsourcesofnon-taxrevenuethataccountforlessthantwo-thirdsofnon-taxrevenues.Answer“d”appliesifindividualsourcesofnon-taxrevenuearenotpresented.

Answer:b.Yes,individualsourcesofnon-taxrevenueaccountingforatleasttwo-thirdsof,butnotall,non-taxrevenuesarepresented.


Comment:TheExecutive’sBudgetProposalpresentallindividualsourcesofnon-taxrevenueforthebudgetyear,and“other”or“miscellaneous”revenueaccountformorethreepercentofallnon-taxrevenue.Specifically,thelineitem"OtherNon-TaxRevenues"underBureauofTreasuryaccountsfor18%oftotalNon-Taxrevenues.ThiscanbefoundintheBESFFY2019,specificallyTableC.4titled“Non-TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,2017-2021.”



11.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenueestimatesbycategory(suchastaxandnon-tax)foramulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:Question11evaluateswhetherrevenueestimatesarepresentedforamulti-yearperiod(atleasttwoyearsbeyondthebudgetyear)by“category;”thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentmulti-yearestimatesofrevenuesclassifiedbycategoryforatleasttwoyearsfollowingthebudgetyearinquestion.

Answer:a.Yes,multi-yearestimatesofrevenuearepresentedbycategory.

Source:TableA.2,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page2:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/A2.pdf

Comment:TheExecutive’sBudgetProposalpresentmulti-yearestimatesofrevenuesclassifiedbycategoryforatleasttwoyearsfollowingthebudgetyear.ThiscanbefoundintheBESFFY2019,specificallyinTableA.2titled“NationalGovernmentFiscalProgram,FY2017-2021.”



12.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesforindividualsourcesofrevenuepresentedforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:Question12evaluateswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedforamulti-yearperiod(atleasttwoyearsbeyondthebudgetyear).Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentmulti-yearestimatesofallsourcesofrevenueindividually,accountingforallrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theExecutive’sBudget

Proposaloritssupportingdocumentationmustpresentmulti-yearestimatesofindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsmulti-yearestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”appliesifindividualsourcesofrevenuearenotpresentedforamulti-yearperiod.

Answer:a.Yes,multi-yearestimatesforindividualsourcesofrevenueaccountingforallrevenuearepresented.

Source:TableC.3,TaxRevenueProgram,byCollectingDepartment/Agency,bySource,2017-2021,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/C3.pdf

TableC.4,Non-TaxRevenueProgram,byCollectingDepartment/Agency,bySource,2017-2021,BESFFY2019,page,460:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/C4.pdf

Comment:TheExecutive’sBudgetProposalpresentmulti-yearestimatesofallsourcesofrevenueindividually,accountingforallrevenue,and“other”or“miscellaneous”revenueaccountforthreepercentorlessofallrevenue.ThiscanbefoundintheBESFFY2019,specificallyinTableC.3,TaxRevenueProgram,byCollectingDepartment/Agency,bySource,2017-2021,page458andTableC.4,Non-TaxRevenueProgram,byCollectingDepartment/Agency,bySource,2017-2021,BESFFY2019,page,460.Wecouldalsonotethatforthe2021projections,'other'revenuesonlyaccountfor1.1%ofthetotalrevenues,justifyinganAscore.



13.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:Question13asksaboutthreekeyestimatesrelatedtoborrowinganddebtthatthebudgetshouldinclude:

·theamountofnetnewborrowingrequiredduringthebudgetyear;

·thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;and

·theinterestpaymentsontheoutstandingdebtforthebudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizensandbanksandbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheIMF.

Netnewborrowingistheadditionalamountofnewborrowingthatisrequiredforthebudgetyeartofinanceexpendituresinthebudgetthatexceedavailablerevenues.Netnewborrowingaddstotheaccumulateddebt.Itisdistinctfromgrossborrowing,whichalsoincludesborrowingneededtorepayexistingdebtthatmaturedduringthebudgetyear;debtthatisreplaced(orrolledover)doesnotaddtothetotalofaccumulateddebt.

Interestpaymentsonthedebt(ordebtservicecosts)aretypicallymadeatregularintervals,andthesepaymentsmustbemadeonatimelybasisinordertoavoiddefaultingonthedebtobligation.Interestpaymentsareseparatefromtherepaymentofprincipal,whichoccursonlywhentheloanhasmaturedandmustbepaidbackinfull.

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,theExecutive’sBudgetProposaloritssupportingdocumentationmustpresenttwoofthosethreeestimates.Fora“c”answer,theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentoneofthethreeestimates.Answer“d”appliesnoinformationonborrowinganddebtispresentedforthebudgetyear.

Answer:a.Yes,allthreeestimatesrelatedtogovernmentborrowinganddebtarepresented.

Source:TableD.1,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page475:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D1.pdf

TableD.3,BESFFY2019,page477:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D3.pdf

TableB.17,BESFFY2019,page442:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B17.pdf

Comment:TheExecutive’sBudgetProposalpresentsallthreeestimatesofborrowinganddebt.ThiscanbefoundintheBESFFY2019.TableD.1titled“NationalGovernmentFinancing,FY2017-2019”providesinformationonnetborrowing.TableD.3titled“OutstandingDebtofthenationalGovernment,asofYear-End2017-2019”showsinformationonthetotaldebtoutstandingattheendofthebudgetyear.Finally,TableB.17titled“NationalGovernmentDebtServiceExpenditures,FY2017-2019”providesdataonthetotaldebtoutstandingattheendofthebudgetyear.



13b.BasedontheresponsetoQuestion13,checkthebox(es)belowtoidentifywhichestimatesofgovernmentborrowinganddebtarepresentedintheExecutive’sBudgetProposal:

Answer:TheamountofnetnewborrowingrequiredduringthebudgetyearThecentralgovernment’stotaldebtburdenattheendofthebudgetyearTheinterestpaymentsonoutstandingdebtforthebudgetyear




Comment:TheExecutive’sBudgetProposalpresentsallthreeestimatesofborrowinganddebt.ThiscanbefoundintheBESFFY2019.TableD.1titled“NationalGovernmentFinancing,FY2017-2019”providesinformationonnetborrowing.TableD.3titled“OutstandingDebtofthenationalGovernment,asofYear-End2017-2019”showsinformationonthetotaldebtoutstandingattheendofthebudgetyear.Finally,TableB.17titled“NationalGovernmentDebtServiceExpenditures,FY2017-2019”providesdataonthetotaldebtoutstanding.



IBPCommentThePeerRevieweriscorrect-thehighlighted(bold)itemsareselectedbecauseallthreeelementsarereportedintheEBP.

14."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationrelatedtothecompositionofthetotaldebtoutstandingattheendofthebudgetyear?

(Thecoreinformationmustincludeinterestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)"

GUIDELINES:

Question14focusesonthecompositionofgovernmentdebtattheendofthebudgetyear,askingwhether“core”informationrelatedtoitscompositionispresented.Thesecorecomponentsinclude:

interestratesonthedebt;maturityprofileofthedebt;andwhetherthedebtisdomesticorexternal.

Theinterestratesaffecttheamountofinterestthatmustbepaidtocreditors.Thematurityprofileindicatesthefinalpaymentdateoftheloan,atwhichpointtheprincipal(andallremaininginterest)isduetobepaid;governmentborrowingtypicallyincludesamixofshort-termandlong-termdebt.AsdiscussedinQuestion13,domesticdebtisheldbyacountry’scitizens,banks,andbusinesses,whileexternaldebtisheldbyforeigners.Thesefactorsrelatedtothecompositionofthedebtgiveanindicationofthepotentialvulnerabilityofthecountry’sdebtposition,andultimatelywhetherthecostofservicingtheaccumulateddebtisaffordable.

Beyondthesecoreelements,agovernmentmayalsoprovideadditionalinformationrelatedtothecompositionofitsdebt,includingforinstance:whetherinterestratesarefixedorvariable;whetherdebtiscallable;thecurrencyofthedebt;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);ananalysisoftheriskassociatedwiththedebt;andwhereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtothecompositionofgovernmentdebtattheendofthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothecompositionofgovernmentdebtispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonthecompositionofthedebtoutstandingattheendofthebudgetyear.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthecompositionofthetotaldebtoutstanding.

Source:TableB.17,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page442:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B17.pdfTableB.18,BESFFY2019,page443:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B18.pdfTableB.19,BESFFY2019,pages444-450:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B19.pdfTableD.2,BESFFY2019,page476:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D2.pdfTableD.3,BESFFY2019,page477:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D3.pdfTableD.4,BESFFY2019,page478:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D4.pdfTableD.5,BESFFY2019,pages479-486:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D5.pdf

Comment:TheExecutive’sBudgetProposalpresentsallofthecoreinformationrelatedtothecompositionofgovernmentdebtattheendofthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.CoreandadditionalinformationonthecompositionofthedebtcanbefoundinSectionsBandDoftheBESFFY2019.

InterestratesfordomesticdebtisinTableB.18,andinterestratesforexternaldebtinB.19.

MaturityprofileofdomesticloansisshowninD.4.MaturityprofileforexternalloansisshowninD.5.

Aclassificationofdebtwhetherdomesticorexternal,isshowninTableD.2.

Inaddition,asbeyond-the-coreinformation,thepurposeforthedebtfinancingofprojectsareprovidedinTableB.19.TableB.19andB.18alsoshowwhetherthedebtinterestratesarefixedorfloating.



14b.BasedontheresponsetoQuestion14,checkthebox(es)toidentifywhichelementsofthecompositionofthetotaldebtoutstandingarearepresentedintheExecutive’sBudgetProposal:

Answer:InterestratesonthedebtMaturityprofileofthedebtWhetherthedebtisdomesticorexternalInformationbeyondthecoreelements(pleasespecify)

Source:TableB.17,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page442:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B17.pdfTableB.18,BESFFY2019,page443:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B18.pdfTableB.19,BESFFY2019,pages444-450:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B19.pdfTableD.2,BESFFY2019,page476:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D2.pdfTableD.3,BESFFY2019,page477:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D3.pdfTableD.4,BESFFY2019,page478:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D4.pdfTableD.5,BESFFY2019,pages479-486:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D5.pdf

Comment:TheExecutive’sBudgetProposalpresentsallofthecoreinformationrelatedtothecompositionofgovernmentdebtattheendofthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.CoreandadditionalinformationonthecompositionofthedebtcanbefoundinSectionsBandDoftheBESFFY2019.InterestratesonthedebtandfinalpaymentdatesonloansarelistedinTablesB.17andB.18.Thematurityprofileofthedebtandtheclassificationofthedebt,whetherdomesticorexternal,arelistedinTablesD.2,D.3,D.4andD.5.Beyondthecoreelements,informationisalsoprovidedonthepurposeforthedebtfinancingofprojectsasshowninTableB.19.



15."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonthemacroeconomicforecastuponwhichthebudgetprojectionsarebased?

(ThecoreinformationmustincludeadiscussionoftheeconomicoutlookwithestimatesofnominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates.)"

GUIDELINES:Question15focusesonthemacroeconomicforecastthatunderliesthebudget’srevenueandexpenditureestimates,askingwhether“core”informationrelatedtotheeconomicassumptionsispresented.Thesecorecomponentsincludeadiscussionoftheeconomicoutlookaswellasestimatesofthefollowing:

nominalGDPlevel;inflationrate;realGDPgrowth;andinterestrates.

WhilethecoremacroeconomicinformationshouldbeastandardfeatureoftheExecutive’sBudgetProposal,theimportanceofsometypesofmacroeconomicassumptionsmayvaryfromcountrytocountry.Forexample,thebudgetestimatesofsomecountriesareparticularlyaffectedbychangesinthepriceofoilandothercommodities.

Beyondthesecoreelements,somegovernmentsalsoprovideadditionalinformationrelatedtotheeconomicoutlook,includingforinstance:shortandlong-terminterestrates;rateofemploymentandunemployment;GDPdeflator;priceofoilandothercommodities;currentaccount;exchangerate;andcompositionofGDPgrowth.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothemacroeconomicforecastispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthemacroeconomicforecastispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthemacroeconomicforecast.


TechnicalNotesonthe2019ProposedNationalBudget,pages5-10:https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2019/Technical-Notes-on-the-2019-Proposed-National-Budget.pdf

Comment:TheExecutive’sBudgetProposalandsupportingdocumentationpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.ThemacroeconomicassumptionsusedtoformulatethebudgetarepresentedintheBESF

FY2019,specificallyinTableA.1titled“MacroeconomicParameters,FY2017-2021.”Itcontainsinformationonestimatesofnominalgrossdomestic(GDP)level,realGDPgrowthandinterestrates.Beyondthesecoreelements,informationonthemacroeconomicforecastaregiven,includingLIBORrate,oilprices,exports’levelandgrowthrate,imports’levelandgrowthrate,grossinternationalreserves,andinflationrate.Further,pages5to10oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionoftheBudgetSensitivitytoMacroeconomicParameters.



15b.BasedontheresponsetoQuestion15,checkthebox(es)toidentifywhichelementsofthemacroeconomicforecastareincludedintheExecutive’sBudgetProposal:

Answer:NominalGDPlevelInflationrateRealGDPgrowthInterestratesInformationbeyondthecoreelements(pleasespecify)


TechnicalNotesonthe2019ProposedNationalBudget,pages5-10:https://www.dbm.gov.ph/wp-content/uploads/Our%20Budget/2019/Technical-Notes-on-the-2019-Proposed-National-Budget.pdf

Comment:TheExecutive’sBudgetProposalandsupportingdocumentationpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.ThemacroeconomicassumptionsusedtoformulatethebudgetarepresentedintheBESFFY2019,specificallyinTableA.1titled“MacroeconomicParameters,FY2017-2021.”Itcontainsinformationonestimatesofnominalgrossdomestic(GDP)level,realGDPgrowthandinterestrates.Theinformationbeyondthecoreelementsincludethemacroeconomicforecastaregiven,includingLIBORrate,oilprices,exports’levelandgrowthrate,imports’levelandgrowthrate,grossinternationalreserves,andinflationrate.Further,pages5to10oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionoftheBudgetSensitivitytoMacroeconomicParameters.



16."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationshowtheimpactofdifferentmacroeconomicassumptions(i.e.,sensitivityanalysis)onthebudget?

(Thecoreinformationmustincludeestimatesoftheimpactonexpenditures,revenue,anddebtofdifferentassumptionsfortheinflationrate,realGDPgrowth,andinterestrates.)"

GUIDELINES:

Question16focusesontheissueofwhethertheExecutive’sBudgetProposalshowshowdifferentmacroeconomicassumptionsaffectthebudgetestimates(knownasa“sensitivityanalysis”).Itaskswhether“core”informationrelatedtoasensitivityanalysisispresented,estimatingtheimpactonexpenditures,revenue,anddebtofdifferentassumptionsfor:

·inflationrate;

·realGDPgrowth;and

·interestrates.

Asensitivityanalysisshowstheeffectonthebudgetofpossiblechangesinsomemacroeconomicassumptions,andisimportantforunderstandingtheimpactoftheeconomyonthebudget;forinstance,whatwouldhappentorevenuecollectionsifGDPgrowthwereslowerthanwhatisassumedinthebudgetproposal?Orwhatwouldhappentoexpenditureifinflationwerehigherthanestimated?Orhowwillrevenuebeaffectedbyadecreaseinthepriceofoil?

AsnotedforQuestion15,changesincertainmacroeconomicassumptions,suchasthepriceofoilandothercommodities,canhaveasignificantimpactonthebudgetestimates.Asaresult,somesensitivityanalysesmayalsoexaminetheimpactonthebudgetestimatesofchangesinassumptionssuchasthepriceofoilthatarebeyondthecoreelementsoftheinflationrate,realGDPgrowth,andinterestrates.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoa“sensitivityanalysis”aswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoa“sensitivityanalysis”ispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationon“sensitivityanalysis”ispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedtoshowtheimpactofdifferentmacroeconomicassumptionsonthebudget.


TechnicalNotesonthe2019ProposedNationalBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:TheBESFFY2019showsonTableA.6titled“BudgetSensitivitytoMacroeconomicParameters,2019”theimpactofdifferentmacroeconomicassumptionsonexpenditures,revenueanddebtofdifferentassumptionsfortheinflationrate,realGDPgrowthrate,andinterestrates.Page10oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionoftheBudget’sSensitivitytoMacroeconomicParameters.



17.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationforatleastthebudgetyearthatshowshownewpolicyproposals,asdistinctfromexistingpolicies,affectexpenditures?

GUIDELINES:Questions17and18askaboutnewpolicyproposalsinthebudget.Inanygivenyear,mostoftheexpendituresandrevenuesinthebudgetreflectthecontinuationofexistingpolicies.However,muchoftheattentionduringthebudgetdebateisfocusedonnewproposals—whethertheycallforeliminatinganexistingprogram,introducinganewone,orchanginganexistingprogramatthemargins.Typically,thesenewproposalsareaccompaniedbyanincrease,adecrease,orashiftinexpendituresorrevenues.Becausethesechangesmayhavedifferentimpactsonpeople’slives,thebudgetproposalshouldpresentsufficientdetailaboutnewpoliciesandtheirbudgetaryimpact.

Question17asksaboutnewexpenditurepolicies,andQuestion18asksaboutnewrevenuepolicies.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowallnewpolicyproposalsaffectexpenditures(forQuestion17)orrevenues(forQuestion18)andanarrativediscussionoftheimpactofthesenewpolicies.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowtheimpactofallnewpolicyproposals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowtheimpactofonlysome,butnotall,policyproposals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedontheimpactofnewpolicyproposals.

Answer:a.Yes,estimatesthatshowhowallnewpolicyproposalsaffectexpendituresarepresented,alongwithanarrativediscussion.

Source:TechnicalNotesonthe2019ProposedNationalBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:TheTechnicalNotesonthe2019ProposedNationalBudgetpresentsonpages37-108presentsestimatesofhowallnewpolicyproposalsaffectexpendituresandanarrativediscussionoftheimpactofthesenewpolicies.



18.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationforatleastthebudgetyearthatshowshownewpolicyproposals,asdistinctfromexistingpolicies,affectrevenues?

GUIDELINES:Questions17and18askaboutnewpolicyproposalsinthebudget.Inanygivenyear,mostoftheexpendituresandrevenuesinthebudgetreflectthecontinuationofexistingpolicies.However,muchoftheattentionduringthebudgetdebateisfocusedonnewproposals—whethertheycallforeliminatinganexistingprogram,introducinganewone,orchanginganexistingprogramatthemargins.Typically,thesenewproposalsareaccompaniedbyanincrease,adecrease,orashiftinexpendituresorrevenues.Becausethesechangesmayhavedifferentimpactsonpeople’slives,thebudgetproposalshouldpresentsufficientdetailaboutnewpoliciesandtheirbudgetaryimpact.

Question17asksaboutnewexpenditurepolicies,andQuestion18asksaboutnewrevenuepolicies.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowallnewpolicyproposalsaffectexpenditures(forQuestion17)orrevenues(forQuestion18)andanarrativediscussionoftheimpactofthesenewpolicies.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowtheimpactofallnewpolicyproposals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowtheimpactofonlysome,butnotall,policyproposals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedontheimpactofnewpolicyproposals.

Prior-yearinformationconstitutesanimportantbenchmarkforassessingtheproposalsfortheupcomingbudgetyear.Estimatesofprioryearsshouldbepresentedinthesameformats(intermsofclassification)asthebudgetyeartoensurethatyear-to-yearcomparisonsaremeaningful.Forexample,ifthebudgetproposesshiftingresponsibilityforaparticularprogramfromoneadministrativeunittoanother—suchasshiftingresponsibilityforthetrainingofnursesfromthehealthdepartmenttotheeducationdepartment—theprior-yearfiguresmustbeadjustedbeforeyear-to-yearcomparisonsofadministrativebudgetscanbemade.

Typically,whenthebudgetproposalissubmitted,theyearpriortothebudgetyear(BY-1),alsoknownasthecurrentyear,hasnotended,sotheexecutivewillprovideestimatesoftheanticipatedoutcomeforBY-1.Thesoundnessoftheseestimatesisdirectlyrelatedtothedegreetowhichtheyhavebeenupdatedtoreflectactualexpenditurestodate,legislativechangesthathaveoccurred,andanticipatedchangesinmacroeconomic,caseload,andotherrelevantfactorsfortheremainderoftheyear.

Thefirstyearthatcanreflectactualoutcomes,therefore,isgenerallytwoyearsbeforethebudgetyear(BY-2).ThustheOECDrecommendsthatdatacoveringatleasttwoyearsbeforethebudgetyear(alongwithtwoyearsofprojectionsbeyondthebudgetyear)areprovidedinordertoassessfullythetrendsinthebudget.

Answer:a.Yes,estimatesthatshowhowallnewpolicyproposalsaffectrevenuesarepresented,alongwithanarrativediscussion.


Comment:TheTechnicalNotesonthe2019ProposedNationalBudgetpresentsonpages11-19estimatesofhowallnewpolicyproposalsaffectrevenuesandanarrativediscussionoftheimpactofthesenewpolicies.



19.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresfortheyearprecedingthebudgetyear(BY-1)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question19asksifexpenditureestimatesfortheyearpriortothebudgetyear(BY-1)arepresentedbyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.(SeeQuestions1-5above.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesforBY-1byallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesforBY-1mustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesforBY-1arepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesforBY-1arenotpresentedbyanyofthethreeclassifications.

Answer:a.Yes,expenditureestimatesforBY-1arepresentedbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).


TableB.2,BESFFY2019,pages130-254:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B2.pdf


Comment:TheBESFFY2019presentsinformationonexpendituresbyadministrative,economicandfunctionalclassificationfor2018ortheyearpriortothebudgetyear.TableB.2titled“Obligations,ByObjectofExpenditures,ByDepartment/SpecialPurposeFund,FY2017-2019”showsexpendituresbyadministrativeclassification.TableB.1titled“ExpenditureProgram,ByObject,FY2017-2019”presentsexpendituresbyeconomicclassification,whileTableB.5titled“ExpenditureProgramBySector,FYs2017-2019”indicatesexpendituresbyfunctionalclassification.



20.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsfortheyearprecedingthebudgetyear(BY-1)?

GUIDELINES:Question20asksifexpenditureestimatesfortheyearbeforethebudgetyear(BY-1)arepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,forBY-1.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresforBY-1.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Answer:a.Yes,programsaccountingforallexpendituresarepresentedforBY-1.

Source:NationalExpenditureProgramFY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019

Comment:

TheNationalExpenditureProgramFY2019presentsexpendituresforallindividualprograms,accountingforallexpenditures,for2018ortheyearpriortothebudgetyear.



21.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,haveexpenditureestimatesoftheyearpriortothebudgetyear(BY-1)beenupdatedfromtheoriginalenactedlevelstoreflectactualexpenditures?

GUIDELINES:Question21askswhethertheexpenditureestimatesfortheyearbeforethebudgetyear(BY-1)havebeenupdatedfromtheoriginalenactedlevels.Updatescanreflectactualexperiencetodate;revisedestimatesduetoshiftingoffundsbytheexecutive,aspermittedunderthelaw;enactmentofsupplementalbudgets;andrevisedassumptionsregardingmacroeconomicconditions,caseload,andotherrelevantfactorsfortheremainderoftheyear.

Answer"a"appliesiftheestimateshavebeenupdated;answer“b”appliesiftheoriginalestimatesarestillbeingused.

Answer:a.Yes,expenditureestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.


Comment:TheBESFFY2019reflectsonTableB.1titled“ExpenditureProgram,ByObject,FY2017-2019”theexpenditurelevelsfor2018whichistheyearpriortothebudgetyear,butisisnotclearwhethertheyhavebeenupdatedfromtheapprovedversion.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:.Yes,expenditureestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.Comments:TheFY2019BESFreflectsadjustedexpenditurelevelsforFY2018.Thisisclearlylabeledas2018AdjustedPrograminTableB.7titled"NationalGovernmentExpenditures,ByRecipientUnit,FY2017-2019".Weblink:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B7.pdf

ResearcherResponseTherevisedansweris"Yes".TheFY2019BESFreflectsadjustedexpenditurelevelsforFY2018.Thisislabeledas2018AdjustedPrograminTableB.7titled"NationalGovernmentExpenditures,ByRecipientUnit,FY2017-2019".https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B7.pdf

22.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofexpenditureformorethanoneyearpriortothebudgetyear(thatis,BY-2andprioryears)byanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question22asksifexpenditureestimatesformorethanoneyearpriortothebudgetyear(BY-2andprioryears)arepresentedbyanyofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.(SeeQuestions1-5above.)

Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpenditureestimatesforBY-2andprioryearsbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesforBY-2andprioryearsmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesforBY-2andprioryearsarepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimates

forBY-2andprioryearsarenotpresentedbyanyofthethreeclassifications

Answer:a.Yes,expenditureestimatesforBY-2andprioryearsarepresentedbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).




Comment:TheBESFFY2019presentsinformationonexpendituresbyadministrative,economicandfunctionalclassificationfor2018formorethanoneyearpriortothebudgetyear.TableB.2titled“Obligations,ByObjectofExpenditures,ByDepartment/SpecialPurposeFund,FY2017-2019”showsexpendituresbyadministrativeclassification.TableB.1titled“ExpenditureProgram,ByObject,FY2017-2019”presentsexpendituresbyeconomicclassification,whileTableB.5titled“ExpenditureProgramBySector,FYs2017-2019”indicatesexpendituresbyfunctionalclassification.



22b.BasedontheresponsetoQuestion22,checkthebox(es)toidentifywhichexpenditureclassificationshaveestimatesformorethanoneyearpriortothebudgetyearintheExecutiveBudgetProposal:

Answer:AdministrativeclassificationEconomicclassificationFunctionalclassification




Comment:TheBESFFY2019presentsinformationonexpendituresbyadministrative,economicandfunctionalclassificationfor2018formorethanoneyearpriortothebudgetyear.TableB.2titled“Obligations,ByObjectofExpenditures,ByDepartment/SpecialPurposeFund,FY2017-2019”showsexpendituresbyadministrativeclassification.TableB.1titled“ExpenditureProgram,ByObject,FY2017-2019”presentsexpendituresbyeconomicclassification,whileTableB.5titled“ExpenditureProgramBySector,FYs2017-2019”indicatesexpendituresbyfunctionalclassification.



23.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentexpendituresforindividualprogramsformorethanoneyearprecedingthebudgetyear(thatis,BY-2andprioryears)?

GUIDELINES:Question23asksifexpenditureestimatesformorethanoneyearbeforethebudgetyear(BY-2andprioryears)arepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.Forexample,theMinistryofHealth’sbudgetcouldbebrokendownintoseveralsubgroups,suchas“primaryhealthcare,”“hospitals,”or“administration.”Thesesubgroupsshouldbeconsideredprogramseveniftheycouldbe,butarenot,brokendownintosmaller,moredetailedunits.


Toanswer“a,”theExecutive’sBudgetProposaloritssupportingdocumentationmustpresentexpendituresforallindividualprograms,accountingforallexpenditures,forBY-2andprioryears.Toanswer“b,”theprogramsshownindividuallyintheExecutive’sBudgetProposaloritssupportingdocumentationmustaccountforatleasttwo-thirdsofallexpendituresforBY-2andprioryears.A“c”answerappliesiftheExecutive’sBudgetProposaloritssupportingdocumentationpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogram.

Answer:a.Yes,programsaccountingforallexpendituresarepresentedforBY-2andprioryears.

Source:NationalExpenditureProgramFY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019

Comment:TheNationalExpenditureProgramFY2019presentsexpendituresforallindividualprograms,accountingforallexpenditures,for2017orthesecondyearpriortothebudgetyear.



24.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichallexpendituresreflectactualoutcomes?

GUIDELINES:Question24asksforwhichyeartheactualoutcomesforexpendituresareshown.Inmostcases,themostrecentyearforwhichbudgetdataonactualoutcomesareavailablewillbeBY-2,asBY-1isgenerallynotyetfinishedwhenthebudgetproposalisdrafted.SoagovernmentthathasupdatedallitsexpendituredataforBY-2toreflectwhatactuallyoccurred,asopposedtoestimatingtheoutcomeforthatyear,showsgoodpublicfinancialmanagementpractice.

Foran“a”answer,acountrymustmeetthegoodpracticeofhavingthefiguresforBY-2reflectactualoutcomes.

Answer:a.Twoyearspriortothebudgetyear(BY-2).


Comment:TheBESFFY2019showsinTableB.1titled“ExpenditureProgram,ByObject,FY2017-2019”actualoutcomesofexpenditurestwoyearspriortothebudgetyear.

Thefollowingalsohaveactual2017information:

TableB.1,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages125-129:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B1.pdf





25.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenuebycategory(suchastaxandnon-tax)fortheyearprecedingthebudgetyear(BY-1)?

GUIDELINES:Questions25through30coverthesametopicsaboutprior-yearinformationastheprevioussixquestions,onlytheyaskaboutinformationprovidedforrevenuesratherthanexpenditures.

Answer:a.Yes,revenueestimatesforBY-1arepresentedbycategory.

Source:TableC.1.,BESFFY2019,page455:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/C1.pdf

Comment:TheBESFFY2019presentsinTableC.1titled“RevenueProgram,BySource,FY2017-2019”informationonrevenueestimatesfor2018ortheyearprecedingthebudgetyear.



26.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentindividualsourcesofrevenuefortheyearprecedingthebudgetyear(BY-1)?


Answer:a.Yes,individualsourcesofrevenueaccountingforallrevenuearepresentedforBY-1.


TableC.4,BESFFY2019,pages460-473:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/C4.pdf

Comment:TheBESFFY2019listsinTableC.3“TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,FY2017-2021”andTableC.4titled“Non-TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,FY2017-2021”theindividualsourcesoftaxandnon-taxrevenuefor2018ortheyearprecedingthebudgetyear.



27.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,havetheoriginalestimatesofrevenuefortheyearpriortothebudgetyear(BY-1)beenupdatedtoreflectactualrevenuecollections?


Answer:a.Yes,revenueestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.


Comment:TheBESFFY2019presentsinTableC.1titled“RevenueProgram,BySource,FY2017-2019”informationonrevenueestimatesfor2018,ortheyearprecedingthebudgetyear,butitisnotcleartheyhavebeenupdatedfromtheoriginalenactedlevels.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,revenueestimatesforBY-1havebeenupdatedfromtheoriginalenactedlevels.Comments:ItshallbenotedthattheGeneralAppropriationsAct(EnactedBudget)doesnotincluderevenueestimates.However,theBESF(whichispartoftheExecutive'sBudgetProposal)providesestimatesonrevenuesthatserveasbasisfortheproposedbudget.Therefore,thebasisoftheenactedbudgetistherevenueprojectionsprovidedintheBESF.TherevenueestimateswillbeupdatedinthesucceedingBESFtoreflectrecentmacroeconomicandfiscaldevelopments.TheFY2018(BY-1)revenueestimatesintableC.1oftheFY2019BESFhavebeenupdatedfromthesametablepublishedintheFY2018BESF(weblink:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2018/C1.pdf).

ResearcherResponseTherevisedansweris"Yes".TheFY2018(BY-1)revenueestimatesintableC.1oftheFY2019BESFhavebeenupdatedfromthesametablepublishedintheFY2018BESFhttps://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2018/C1.pdf

28.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentrevenueestimatesbycategory(suchastaxandnon-tax)formorethanoneyearpriortothebudgetyear(thatis,BY-2andprioryears)?


Answer:a.Yes,revenueestimatesforBY-2andprioryearsarepresentedbycategory.


Comment:TheBESFFY2019providesinTableC.1titled“RevenueProgram,BySource,FY2017-2019”informationonrevenueestimatesfor2017,orthesecondyearprecedingthebudgetyear.


GovernmentReviewer

Opinion:Agree

29.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentindividualsourcesofrevenueformorethanoneyearpriortothebudgetyear(thatis,BY-2andprioryears)?


Answer:a.Yes,individualsourcesofrevenueaccountingforallrevenuearepresentedforBY-2andprioryears.



Comment:TheBESFFY2019listsinTableC.3“TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,FY2017-2021”andTableC.4titled“Non-TaxRevenueProgram,ByCollectingDepartment/Agency,BySource,FY2017-2021”theindividualsourcesoftaxandnon-taxrevenuefor2017orthesecondyearprecedingthebudgetyear.



30.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichallrevenuesreflectactualoutcomes?





Comment:TheBESFFY2019presentsinTablesC3andC4informationonactualoutcomesofrevenuestwoyearspriortothebudgetyear.Allrevenuedocumentshaveupdated2017actualvalues.



31."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationongovernmentborrowinganddebt,includingitscomposition,fortheyearprecedingthebudgetyear(BY-1)?

(ThecoreinformationmustincludethetotaldebtoutstandingattheendofBY-1;theamountofnetnewborrowingrequiredduringBY-1;interestpaymentsonthedebt;interestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)"

GUIDELINES:Question31focusesonprior-yeardebtinformation,ratherthanonprior-yearexpendituresorrevenues,askingwhether“core”informationisprovidedongovernmentborrowinganddebt,includingitscomposition,fortheyearprecedingthebudgetyear(BY-1).

The“core”informationincludes:

totaldebtoutstandingattheendofBY-1;amountofnetnewborrowingrequiredduringBY-1;interestpaymentsonthedebt;interestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.

ThiscoreinformationforBY-1isconsistentwiththebudgetyearinformationforborrowinganddebt,whichisexaminedinQuestions13and14.

Inaddition,somegovernmentsprovideinformationbeyondthecoreelements,suchasgrossnewborrowingrequiredduringBY-1;currencyofthedebt;whetherthedebtcarriesafixedorvariableinterestrate;whetheritiscallable;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);whereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtogovernmentborrowinganddebt,includingitscomposition,forBY-1aswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtogovernmentborrowinganddebt,includingitscomposition,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedongovernmentborrowinganddebtforBY-1.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforgovernmentdebt.

Source:TableB.17,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page442:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B17.pdfTableB.18,BESFFY2019,page443:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B18.pdfTableB.19,BESFFY2019,pages444-450:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B19.pdfTableD.1,BESFFY2019,page475:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D1.pdfTableD.2,BESFFY2019,page476:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D2.pdfTableD.3,BESFFY2019,page477:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D3.pdfTableD.4,BESFFY2019,page478:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D4.pdfTableD.5,BESFFY2019,pages485-486:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D5.pdf

Comment:Coreandadditionalinformationonthecompositionofgovernmentborrowinganddebtfor2018ortheyearpriortothebudgetyearcanbefoundinSectionsBandDoftheBESFFY2019.Totaloutstandingdebt,amountofnetnewborrowingandtheclassificationofdebtwhetherit’sexternalordomestic,areprovidedinTablesD1toD5.InterestpaymentsandthematurityprofileofthedebtareshowninTablesB.17toB.19.Beyondthecoreelements,additionalinformationincludesthepurposeoftheprojectsfundedbythedebt(TableD.5).



32.IntheExecutive’sBudgetProposaloranysupportingbudgetdocumentation,whatisthemostrecentyearpresentedforwhichthedebtfiguresreflectactualoutcomes?

GUIDELINES:

Question32asksforwhichyeartheactualoutcomefordebtisshown.Inmostcases,themostrecentyearforwhichbudgetdataonactualoutcomesareavailablewillbeBY-2,asBY-1isgenerallynotyetfinishedwhenthebudgetproposalisdrafted.SoagovernmentthathasupdateditsdebtdataforBY-2toreflectwhatactuallyoccurred,asopposedtoestimatingtheoutcomeforthatyear,showsgoodpublicfinancialmanagementpractice.

Foran“a”answer,acountrymustmeetthegoodpracticeofhavingthefiguresforBY-2reflectactualoutcomes.

Itisessentialthatallgovernmentactivitiesthatmayhaveanimpactonthebudget—inthecurrentbudgetyearorinfuturebudgetyears—befullydisclosedtothelegislatureandthepublicinbudgetdocuments.Insomecountries,forinstance,entitiesoutsidecentralgovernment(suchaspubliccorporations)undertakefiscalactivitiesthatcouldaffectcurrentandfuturebudgets.Similarly,activitiesthatcanhaveasignificantimpactonthebudget,suchaspaymentarrearsandcontingentliabilities,sometimesarenotproperlycapturedbytheregularpresentationsofexpenditure,revenue,anddebt.



Comment:TheBESFFY2019reflectsinTableD.3,page477,titled“OutstandingDebtoftheNationalGovernmentasofYear-End,2017-2019,”actualoutcomesofdebttwoyearspriortothebudgetyear.



33."DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonextra-budgetaryfundsforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationalefortheextra-budgetaryfund;andcompleteincome,expenditure,andfinancingdataonagrossbasis.)"

GUIDELINES:

Question33focusesonextra-budgetaryfunds,askingwhether“core”informationrelatedtothesefunds,whichexistoutsidethebudget,arepresented.Thesecorecomponentsinclude:

astatementofpurposeorpolicyrationalefortheextra-budgetaryfund(i.e.,whywasaparticularfundsetup?whatisitusedfor?);andestimatesofitsincome,expenditure,andfinancing.(Theseestimatesshouldbepresentedonagrossbasissothatitispossibletotellhowmuchmoneyflowsthrougheachextra-budgetaryfund.)

Inmostcountries,governmentsengageincertainbudgetaryactivitiesthatarenotincludedinthecentralgovernment’sbudget.Knownasextra-budgetaryfunds,theycanrangeinsizeandscope.Forexample,countriesfrequentlysetuppensionandsocialsecurityprogramsasextra-budgetaryfunds,wheretherevenuescollectedandthebenefitspaidarerecordedinaseparatefundoutsidethebudget.Anotherexampleofanextra-budgetaryfundcanbefoundincountriesdependentonhydrocarbon/mineralresources,whererevenuesfromproducingandsellingthoseresourcesarechanneledthroughsystemsoutsidetheannualbudget.

Insomecases,theseparationengenderedbyanextra-budgetaryfundservesalegitimatepoliticalpurpose,andthefinancesandactivitiesofthesefundsarewelldocumented.Inothercases,however,thisstructureisusedforobfuscation,andlittleornothingisknownaboutafund’sfinancesandactivities.

Theavailabilityofinformationrelatedtoextra-budgetaryfundsisessentialforacomprehensiveunderstandingofthegovernment’struefiscalposition.Inadditiontothecoreinformation,otherinformationaboutextra-budgetaryfundsisalsodesirable.Suchinformationincludesadiscussionoftherisksassociatedwiththeextra-budgetaryfund;expendituresclassifiedbyeconomic,functional,oradministrativeunit;andtherulesandproceduresthatgoverntheoperationsandmanagementoftheextra-budgetaryfund.

Formoreinformationaboutextra-budgetaryfunds,seetheGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andPrinciple2.1.1oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoextra-budgetaryfundsaswellassomeadditionalinformationbeyondthecoreelements.A“b”answerappliesiftheExecutive’sBudgetProposalorsupportingdocumentationpresentsallofthecoreinformation.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoextra-budgetaryfundsispresented,butsomeofthecorepiecesofinformationarenotincluded.

http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf

https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml

Answer“d”appliesifnoinformationispresentedonextra-budgetaryfunds.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforallextra-budgetaryfunds.

Source:TableB.15,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages410-416:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D3.pdf

TableB.16,BESFFY2019,pages417-441:https://www.dbm.gov.ph/wpcontent/uploads/BESF/BESF2019/B16.pdf

Comment:TheBESFFY2019containsInformationonextra-budgetaryfunds,specificallyinTableB.15,pages410-416,titled“EarmarkedRevenues,2017-2019,”andinTableB.16,pages417-441,titled“OffBudgetAccounts,FY2017-2019.”Thecoreinformationincludesthestatementofpurposeorpolicyrationalefortheextra-budgetaryfund,andcompleteincome,expenditure,andfinancingdataonagrossbasis.However,additionalinformationsuchasdiscussionontherisksassociatedwiththeextrabudgetaryfundisnotavailable.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforallextra-budgetaryfunds.Comments:Informationbeyondthecoreelementsarepresented.ForOff-BudgetAccounts(TableB.16oftheFY2019BESF),thesource/natureofrevenuesandclass/natureofexpendituresareprovidedontopofthecoreelements.Inaddition,theOff-BudgetAccountsaregroupedbytheirrespectiveadministrativeunits(department/agency).ForEarmarkedRevenues(TableB.15oftheFY2019BESF),thesource/natureofrevenuesisprovided.Inaddition,theEarmarkedRevenuesarealsogroupedbytheirrespectiveadministrativeunits(department/agency).

ResearcherResponseIagreewiththeGovernmentReviewer.Ichangemyanswertoa.

34.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentcentralgovernmentfinances(bothbudgetaryandextra-budgetary)onaconsolidatedbasisforatleastthebudgetyear?

GUIDELINES:Question34askswhethertheExecutive’sBudgetProposalorsupportingdocumentspresentthefinancesofthecentralgovernmentonaconsolidatedbasis,showingbothitsbudgetaryandextra-budgetaryactivities.VirtuallyallofthequestionsintheOBSquestionnairefocusonbudgetarycentralgovernment—theactivitiesoftheministries,departments,oragenciesofcentralgovernment.Inaddition,Question33asksaboutextra-budgetaryfunds,suchassocialsecurityfundsthatarenotincludedinthebudget.

Coverageisanimportantaspectoffiscalreporting.Budgetdocumentsshouldcoverthefullscopeofgovernment’sfinancialactivity.Inmanycountries,extra-budgetaryactivitiesaresubstantial,andcanrepresentasizableshareofthecentralgovernment’sactivities.Togetafullpictureofthecentralgovernment’sfinances,therefore,itisnecessarytoexaminebothactivitiesthatareincludedinthebudgetandthosethatareextra-budgetary.Thisquestionaskswhethersuchaconsolidatedpresentationofcentralgovernmentfinancesisprovided.

Thecentralgovernmentisonlyonecomponentoftheoverallpublicsector.Thepublicsectoralsoincludesotherlevelsofgovernment,suchasstateandlocalgovernment,andpubliccorporations.(SeeBox2.1underPrinciple1.1.1oftheIMF’sFiscalTransparencyHandbook(2018):https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml.Forthepurposeofansweringthisquestion,pleaseconsideronlythecentralgovernmentlevel.

Inordertoanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentcentralgovernmentfinances(bothbudgetaryandextra-budgetary)onaconsolidatedbasisforatleastthebudgetyear.

Answer:b.No,centralgovernmentfinancesarenotpresentedonaconsolidatedbasis.

Source:BudgetofExpendituresandSourcesofFinancing(BESF)FY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019

NationalExpenditureProgram(NEP)FY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/national-expenditure-program-fy-2019

Comment:


AreviewoftheExecutive’sBudgetProposalanditssupportingdocumentationshowthatcentralgovernmentfinances(bothbudgetaryandextra-budgetary)arenotpresentedonaconsolidatedbasis.



35.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofintergovernmentaltransfersforatleastthebudgetyear?

GUIDELINES:Question35asksaboutintergovernmentaltransfers.Inmanycases,thecentralgovernmentsupportstheprovisionofagoodorservicebyalowerlevelofgovernmentthroughanintergovernmentaltransferoffunds.Thisisnecessarybecause,independentfromthelevelofadministrativedecentralizationthatexistsinagivencountry,thecapacityforrevenuecollectionofalocalgovernmentisunlikelytobesufficienttopayforallitsexpenses.However,becausetheactivityisnotbeingundertakenbyanadministrativeunitofthecentralgovernment,itisunlikelytoreceivethesamelevelofreviewinthebudget.Thusitisimportanttoincludeinthebudgetproposalastatementthatexplicitlyindicatestheamountandpurposesofthesetransfers.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallintergovernmentaltransfersandanarrativediscussingthesetransfers.Ifanarrativediscussionisnotincluded,butestimatesforallintergovernmentaltransfersarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,intergovernmentaltransfers(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofintergovernmentaltransfersarepresented.

Answer:a.Yes,estimatesofallintergovernmentaltransfersarepresented,alongwithanarrativediscussion.

Source:SectionF,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,pages537-601:https://www.dbm.gov.ph/index.php/budget-documents/2019/budget-of-expenditures-and-sources-of-financing-fy-2019

ChapterXXXVII,NationalExpenditureProgram(NEP)FY2019,pages1034-1059:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/ALGU/ALGU.pdf

Comment:TheBESFFY2019inSectionF,pages537-601,titled“LocalGovernmentUnits(LGUs)”andtheNEPFY2019inChapterXXXVII,pages1034-1059,titled“AllocationtoLocalGovernmentUnits”presentinformationonintergovernmentaltransfersforthebudgetyear.TransferstoLGUscomeinvariousformssuchastheInternalRevenueAllotment(IRA),LocalGovernmentSupportFund,andSpecialFinancialAssistancetoLGUs.TheIRAisthe40percentshareofnationalrevenuetaxesdistributedamongLGUs–provinces,cities,municipalitiesandbarangays.TablesF.1toF.15oftheBESFFY2019showsbothasummaryofallocationstoLGUsasestimatesbyregion,province,cityandmunicipality.TablesAtoGofChapterXXXVIIoftheNEPFY2019providethetotalproposedamountoftransfersforthebudgetyearincludingspecialprovisionspertainingtotheuse,allocationandreleaseofthefund.

The"AllocationstoLocalGovernmentUnits"providesdetailsbothonthetypeoftransferandeachtransfertoeachlocalgovernmentunit.



36.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentalternativedisplaysofexpenditures(suchasbygender,byage,byincome,orbyregion)toillustratethefinancialimpactofpoliciesondifferentgroupsofcitizens,foratleastthebudgetyear?

GUIDELINES:Question36asksabout“alternativedisplays”ofexpendituresthathighlightthefinancialimpactofpoliciesondifferentgroupsofcitizens.Asdiscussedabove,expendituresaretypicallypresentedbyatleastoneofthreeclassifications—administrative,functional,andeconomicclassifications(seeQuestions

1-5)—andbyindividualprogram(Question6).Inaddition,governmentscanprovidealternativedisplaystoemphasizedifferentaspectsofexpenditurepoliciesandtoshowwhobenefitsfromtheseexpenditures.

Forthepurposeofansweringthisquestion,thealternativepresentationmustdifferfromthepresentations(suchasadministrative,functional,oreconomicclassificationsorpresentationbyprogram)usedtoanswerotherquestions.Thealternativedisplaycancoverallexpendituresoronlyaportionofexpenditures.Forinstance,itcanshowhowallexpendituresaredistributedaccordingtogeographicregionoritcanshowhowselectedexpenditures(suchasthehealthbudgetortheagriculturebudget)aredistributedtodifferentregions.Butsuchageographicdisplaymustbesomethingdifferentthanthepresentationofintergovernmentaltransfersusedtoanswerquestion35.Oneexceptioniswhenacountryincludesaspecialpresentationofallpoliciesintendedtobenefitthemostimpoverishedpopulations(andisusedtoanswerQuestion52)thenthatcanbeconsideredanalternativedisplayforpurposesofansweringthisquestionaswell.Finally,brieffactsheetsshowinghowproposalsinthebudgetbenefitparticulargroupswouldbeinsufficient;onlymoredetailedpresentationswouldbeconsidered.

TheIBPBudgetBrief,“HowTransparentareGovernmentsWhenitComestoTheirBudget’sImpactonPovertyandInequality?”(https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf)includesadiscussionoftheimportanceofalternativedisplaysofbudgetinformationandprovidesanumberofexamples.Forinstance,

Bangladeshinits2017-18BudgetincludedadetailedsupplementaryGenderBudgetingReport,whichpresentsthespendingdedicatedtoadvancingwomenacrossvariousdepartments.(https://mof.portal.gov.bd/site/page/3bb14732-b5b1-44df-9921-efedf1496295 ).TheUK’s2017budgetincludedasupplementaryanalysisthatprovidedadistributionalanalysisofthebudgetbyhouseholdsindifferentincomegroups(seehttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661465/distributional_analysis_autumn_budget_2017.pdf)SouthAfrica’s2017BudgetReviewgoesbeyondthestandardpresentationofintergovernmentaltransfers,discussingtheredistributionthatresultsfromnationalrevenueflowingtotheprovincesandmunicipalitiesandpresentingtheallocationsonapercapitabasis(seechapter6,http://www.treasury.gov.za/documents/national%20budget/2017/review/FullBR.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustincludeatleastthreedifferentpresentationsthatillustratethefinancialimpactofpoliciesondifferentgroupsofcitizensforatleastthebudgetyear.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustincludeatleasttwodifferentalternativedisplaysofexpenditures.A“c”appliesisonlyonetypeofalternativedisplayofexpenditureispresented.Answer“d”appliesifnoalternativedisplayofexpenditureispresented.

Answer:a.Yes,atleastthreealternativedisplaysofexpendituresarepresentedtoillustratethefinancialimpactofpoliciesondifferentgroupsofcitizens.

Source:TableB.21,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,p.452:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B21.pdf

TableB.22,BESFFY2019,p.453:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B22.pdf

TechnicalNotesontheProposed2019NationalBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:TableB.21andTableB.22oftheBESFFY2019presentsclimatechangeexpenditures.TableB.21pertainstoClimateChangeExpendituresclassifiedeitherasAdaptationorMitigationbyDepartmentsandSpecialPurposeFunds.TableB.22presentsClimateChangeExpendituresbrokendownintotheStrategicPrioritiesoftheNationalClimateChangeActionPlan.TheTechnicalNotesontheProposed2019NationalBudgetpresentsinTable5,page27,theBreakdownofthe2019BudgetbyRegionandExpenditureperCapita.ItshowsinTable7,page66,theRegionalAllocationforHealthFacilitiesOperationsPrograms.Table10displaysConditionalCashTransferProgramBudgetandPhysicalTargets,2017-2019.



ResearcherResponseThereisagreementthat"Yes,therearethreealternativedisplaysofexpendituresarepresented"asthesuitableanswer.DuerecognitionisgiventothecitationsprovidedbythePeerReviewer.

36b.BasedontheresponsetoQuestion36,selectthebox(es)belowtoidentifywhichtypesofalternativedisplaysareincludedintheExecutive’sBudgetProposal:

GUIDELINES:%20Question%2036%20asks%20about%20“alternative%20displays”%20of%20expenditures%20that%20highlight%20the%20financial%20impact%20of%20policies%20on%20different%20groups%20of%20citizens.%20As%20discussed%20above,%20expenditures%20are%20typically%20presented%20by%20at%20least%20one%20of%20three%20classifications%20—%20administrative,%20functional,%20and%20economic%20classifications%20(see%20Questions%201-5)%20—%20and%20by%20individual%20program.%20In%20addition,%20governments%20can%20provide%20alternative%20displays%20to%20emphasize%20different%20aspects%20of%20expenditure%20policies%20and%20to%20show%20who%20benefits%20from%20these%20expenditures.%20%20The%20United%20Nations%20supports%20gender-responsive%20budgeting,%20which%20can%20include%20a%20gender%20budget%20presentation,%20to%20promote%20gender%20equity%20and%20women’s%20rights.%20See:%20http://gender-financing.unwomen.org/en.%20Other%20alternative%20displays%20can%20show%20how%20expenditures%20flow%20to%20different%20regions%20of%20a%20country,%20or%20how%20expenditures%20benefit%20different%20income%20groups. %20%20For%20example,%20in%20India,%20the%20annual%20budget%20includes%20funds%20for%20the%20Scheduled%20Caste%20Sub-Plan%20(SCSP),%20a%20program%20designed%20to%20assist%20traditionally%20marginalized%20classes%20(or%20castes).%20See%20PDF%202,%20page%204,%20of%20India’s%202011%20Executive’s%20Budget%20Proposal%20(Annual%20Financial%20Statements)%20(https://docs.google.com/folderview?pli=1&id=0ByA9wmvBrAnZeVdkbjlfUDROaFU&tid=0ByA9wmvBrAnZN3ZrdzNzcS1JZzg).%20For%20an%20example%20in%20Spanish,%20see%20the%20page%20of%20Mexico’s%202014%20Executive’s%20Budget%20Proposal%20where%20funds%20specifically%20allocated%20to%20indigenous%20populations%20are%20shown%20(http://www.diputados.gob.mx/PEF2014/temas/anexos/metodologia/metodologia_indigenas.pdf).%20 %20%20For%20the%20purpose%20of%20answering%20this%20question,%20the%20alternative%20display%20can%20cover%20all%20expenditures%20or%20only%20a%20portion%20of%20expenditures.%20For%20instance,%20it%20can%20show%20how%20all%20program%20expenditures%20are%20distributed%20according%20to%20geographic%20region%20or%20it%20can%20show%20how%20selected%20expenditures%20(such%20as%20the%20health%20budget%20or%20the%20agriculture%20budget)%20are%20distributed%20to%20different%20regions. %20Similarly,%20if%20a%20country%20presents%20estimates%20of%20policies%20intended%20to%20benefit%20the%20most%20impoverished%20populations%20(see%20Question%2052)%20then%20that%20should%20be%20considered%20an%20alternative%20display%20for%20purposes%20of%20answering%20this%20question. %20%20To%20answer%20“a,”%20the%20Executive’s%20Budget%20Proposal%20or%20supporting%20documentation%20must%20include%20 at%20least%20three%20different%20presentations%20that%20illustrate%20the%20financial%20impact%20of%20policies%20on%20different%20groups%20of%20citizens%20for%20at%20least%20the%20budget%20year.%20To%20answer%20“b,”%20the%20Executive’s%20Budget%20Proposal%20or%20supporting%20documentation%20must%20include%20at%20least%20two%20different%20alternative%20displays%20of%20expenditures. %20A%20“c”%20applies%20is%20only%20one%20type%20of%20alternative%20display%20of%20expenditure%20is%20presented.%20Answer%20“d”%20applies%20if%20no%20alternative%20display%20of%20expenditure%20is%20presented

https://mof.portal.gov.bd/site/page/3bb14732-b5b1-44df-9921-efedf1496295

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661465/distributional_analysis_autumn_budget_2017.pdf

http://www.treasury.gov.za/documents/national%20budget/2017/review/FullBR.pdf

Answer:PolicyimpactsbasedonincomePolicyimpactsbasedonageDistributionofhealthexpendituresbygeographicregionOtherdisplaysofexpenditure(pleasespecify)


TableB.22,BESFFY2019,p.453:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B22.pdf

TechnicalNotesontheProposed2019NationalBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

Comment:TableB.21andTableB.22oftheBESFFY2019presentsclimatechangeexpenditures.TableB.21pertainstoClimateChangeExpendituresclassifiedeitherasAdaptationorMitigationbyDepartmentsandSpecialPurposeFunds.TableB.22presentsClimateChangeExpendituresbrokendownintotheStrategicPrioritiesoftheNationalClimateChangeActionPlan.TheTechnicalNotesontheProposed2019NationalBudgetpresentsinTable5,page27,theBreakdownofthe2019BudgetbyRegionandExpenditureperCapita.ItshowsinTable7,page66,theRegionalAllocationforHealthFacilitiesOperationsPrograms.Table10displaysConditionalCashTransferProgramBudgetandPhysicalTargets,2017-2019.

PeerReviewerOpinion:DisagreeSuggestedAnswer:Asnotedinmycommentonquestion36,Iwoulddisagreewiththefirsttwocitations,astheclimatechangeexpendituresareshownaccordingtodifferentpurposesetc.,notaccordingtohowtheyaffectdifferentgroupsofcitizens.PolicyimpactsbyAgecanbeseeninTable2ofthetechnicalnotes(page23)whereusingtheCOFOGsystem"socialprotection"includesabreakdownforSeniorCitizens.Asnoted,Table7ofpage66hasregionalallocationforhealthfacilitiesoperations.AndTable10doesfocusontheCCT,forthepoorest.So,Iwouldconcurwiththefirstthree(income[CCT],Age[SocialProtectionbreakdown]andHealthExpenditures),butnot"otherdisplays"(whichwerenotspecified).


ResearcherResponseThecitationsprovidedbythePeerReviewerareaccepted.PolicyimpactsbyAgecanbeseeninTable2ofthetechnicalnotes(page23)whereusingtheCOFOGsystem"socialprotection"includesabreakdownforSeniorCitizens.Table7ofpage66hasregionalallocationforhealthfacilitiesoperations.AndTable10doesfocusontheCCT,forthepoorest.

37.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesoftransferstopubliccorporationsforatleastthebudgetyear?

GUIDELINES:Question37asksabouttransferstopubliccorporations.Itisoftenthecasethatgovernmentshaveastakeinenterprisesthatmanageresourcesthatareparticularlyrelevantforthepublicgood(suchaselectricity,water,andoil).Whilethesepubliccorporationscanoperateindependently,insomecasesthegovernmentwillprovidedirectsupportbymakingtransferstothesecorporations,includingtosubsidizecapitalinvestmentandoperatingexpenses.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringalltransferstopubliccorporationsandanarrativediscussingthepurposesofthesetransfers.Ifanarrativediscussionisnotincluded,butestimatesforalltransferstopubliccorporationsarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,transferstopubliccorporations(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“c”alsoappliesifestimatesoftransferstopubliccorporationsarepresentedasasinglelineitem.Answer“d”appliesifnoestimatesoftransferstopubliccorporationsarepresented.

Answer:a.Yes,estimatesofalltransferstopubliccorporationsarepresented,alongwithanarrativediscussion.

Source:TableE.1,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page487:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E1.pdf

TableE.13,BESFFY2019,https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E13.pdf

SectionXXXV,NationalExpenditureProgramFY2019,pages888-1033:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/BSGC/BSGC.pdf

Comment:TheBESFFY2019inTableE.1,page487,andTableE.13,pages532-535,providesdetailsonsubsidiestogovernmentcorporationsforthebudgetyear.ThespecialprovisionsunderSectionXXXV,pages888-1033,oftheNationalExpenditureProgram(NEP)FY2019includenarrativediscussionsontheobjectivesofbudgetarysupporttogovernmentcorporations.



38.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonquasi-fiscalactivitiesforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforthequasi-fiscalactivityandtheintendedbeneficiaries.)

GUIDELINES:Question38focusesonquasi-fiscalactivities,askingwhether“core”informationrelatedtosuchactivitiesispresented.Thesecorecomponentsinclude:

Astatementofpurposeorpolicyrationaleforthequasi-fiscalactivity(i.e.,whatisthereasonforengaginginthisactivity?);Theidentificationofintendedbeneficiariesofthequasi-fiscalactivity.

Theterm“quasi-fiscalactivities”referstoabroadrangeofactivitiesthatarefiscalincharacterandcouldbecarriedoutthroughtheregularbudgetprocessbutarenot.Forexample,aquasi-fiscalactivitycouldtakeplaceif,insteadofprovidingadirectsubsidythroughthebudgetforaparticularactivity,apublicfinancialinstitutionprovidesanindirectsubsidybyofferingloansatbelow-marketratesforthatactivity.Similarly,itisaquasi-fiscalactivitywhenanenterpriseprovidesgoodsorservicesatpricesbelowcommercialratestocertainindividualsorgroupstosupportthegovernment’spolicygoals.

Theaboveexamplesarepolicychoicesthatmaybeapprovedbythegovernmentandlegislature.However,quasi-fiscalactivitiescanalsoinvolveactivitiesthatviolateorcircumventacountry’sbudgetprocesslawsorarenotsubjecttotheregularlegislativeapprovalprocessforexpenditures.Forexample,theexecutivemayissueaninformalordertoagovernmententity,suchasapubliccommercialenterprise,toprovidetheexecutivewithgoodsandservicesthatnormallywouldhavetobepurchasedwithfundingauthorizedbythelegislature.Allquasi-fiscalactivitiesshouldbedisclosedtothepublicandsubjecttopublicscrutiny.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutquasi-fiscalactivities,includingforexample:theanticipateddurationofthequasi-fiscalactivity;aquantificationoftheactivityandtheassumptionsthatsupporttheseestimates;andadiscussionofthefiscalsignificanceandpotentialrisksassociatedwiththeactivity,includingtheimpactontheentitycarryingouttheactivity.Principle3.3.2oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml)providesexamplesofquasi-fiscalactivitiesthatcanbeconsultedasneeded.Andmoredetailsonquasi-fiscalactivitiescanbefoundintheGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtoallquasi-fiscalactivitiesforatleastthebudgetyearaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtoquasi-fiscalactivitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonquasi-fiscalactivities.

Ifquasi-fiscalactivitiesdonotrepresentasignificantprobleminyourcountry,pleasemark“e.”.”However,pleaseexercisecautioninansweringthisquestion.

Answer:d.No,informationrelatedtoquasi-fiscalactivitiesisnotpresented.


Comment:TheBESFFY2019inTableB.16,page417,titled“Off-BudgetAccounts,FY2017-2019,”presentsinformationonquasi-fiscalactivities.Thepolicyrationaleorlegalbasis,aswellastheidentificationofnatureofexpendituresorintendedbeneficiaries,ofthequasi-fiscalactivitiesarealsoprovided.

TableB.16,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,p.417:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B16.pdf

PeerReviewer



Opinion:DisagreeSuggestedAnswer:d.No,informationrelatedtoquasi-fiscalactivitiesisnotpresented.Comments:Theresponseoftheresearcherhasreferencetothepresentationof"off-budget"expenditures,whichgenerallydon'tspecifythebeneficiaries.Thatexplainstherating.However,informationaboutquasi-fiscalactivitiesdonotseemtobepresented;theIMFinits2015reportdrewattentiontothis:https://www.imf.org/external/pubs/ft/scr/2015/cr15156.pdf

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,thecoreinformationispresentedforallquasi-fiscalactivities.Comments:Theresearchermentionedthatthecoreelements,inparticular,thepolicyrationaleorlegalbasisandtheidentificationofnatureofexpendituresorintendedbeneficiaries,areprovided.Giventhis,werecommendtheratingtobechangedfromCtoB.

ResearcherResponseThesuitableanswerisc.

IBPCommentBasedonthefeedbackprovidedbythepeerreviewer,areviewofTable16confirmsthatitonlyprovidesinformationonoff-budgetaccounts,andnotthequasi-fiscalactivitiesofpubliccorporations.Forthisreason,thescoreisrevisedfromCtoD,asnoquasi-fiscalactivitiesofpubliccorporationsarereportedinthebudget.

39.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonfinancialassetsheldbythegovernment?

(Thecoreinformationmustincludealistingoftheassets,andanestimateoftheirvalue.)

GUIDELINES:Question39focusesonfinancialassetsheldbythegovernment,askingwhether“core”informationrelatedtotheseassetsispresented.Thesecorecomponentsinclude:

Alistingofthefinancialassets;andAnestimateoftheirvalue.

Governmentsownfinancialassetssuchascash,bonds,orequities.Unlikeprivatesectorbusinesses,however,fewgovernmentsmaintainbalancesheetsthatshowthevalueoftheirassetsandliabilities.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutfinancialassets,includingforexample:adiscussionoftheirpurpose;historicalinformationondefaults;differencesbetweenreportedvaluesandmarketvalues;andasummaryoffinancialassetsaspartofthegovernment’sbalancesheet.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearallofthecoreinformationrelatedtoallfinancialassetsheldbythegovernmentaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtofinancialassetsispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonfinancialassetsheldbythegovernment.

Answer:d.No,informationrelatedtofinancialassetsisnotpresented.

Source:TheBudgetProposaldocumentsdonotcontainanyinformationonfinancialassets.

Comment:1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/1987-constitution/Underthe1987PhilippineConstitution,theCommissiononAudithastheexclusivefunctionofaccountingforgovernment’sfinancialcondition,includingconsolidationanddisclosureoffinancialandnon-financialassets.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,informationispresented,butitexcludessomecoreelementsorsomefinancialassets.Comments:TableE.4(BalanceSheetofSelectedGovernmentCorporations,FY2019)oftheFY2019BESFpresentsfinancialassets(cashandinvestmentinsecurities,andrestofcurrentassets)heldbyGovernmentCorporations.Inaddition,TableB.16(Off-BudgetAccounts,FY2017-2019)

presentscashbalanceasofDecember31,2017heldbysomegovernmentagencieswithregardstotheiroff-budgetaccounts.Weblink:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E4.pdfhttps://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B16.pdf

IBPCommentThankyoutothegovernmentreviewerfornotingtheassetsheldbystate-ownedcorporations.Thisquestionasksaboutassetsheldbythecentralgovernment,however.Furthermore,theoff-budgetaccountinformationisshownonlyforBY-1.Therefore,thereresearcher'soriginalresponseofDisconfirmed.

40.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonnonfinancialassetsheldbythegovernment?

(Thecoreinformationmustincludealistingoftheassetsbycategory.)

GUIDELINES:Question40focusesonnonfinancialassetsheldbythegovernment,askingwhether“core”informationrelatedtotheseassetsispresented.Thecoreinformationisalistingofnonfinancialassets,groupedbythetype(orcategory)ofasset.

Nonfinancialassetsarethingsofvaluethatthegovernmentownsorcontrols(excludingfinancialassets)suchasland,buildings,andmachinery.Thevaluationofpublicnonfinancialassetscanbeproblematic,particularlyincaseswheretheassetisnottypicallyavailableontheopenmarket(suchasagovernmentmonument).Inthesecases,itisconsideredacceptabletoprovidesummaryinformationinbudgetdocumentsfromacountry’sregisterofassets.But,insomecases,governmentsareabletovaluetheirnonfinancialassets;somepresentasummaryofnonfinancialassetsaspartoftheirbalancesheets.ForanexampleofhownonfinancialassetsarepresentedinoneofthemanysupportingdocumentstotheNewZealandExecutive’sBudgetProposal,seetheForecastFinancialStatement2011,NotestotheFinancialStatements(Continued),Note14,accessiblehere:https://treasury.govt.nz/sites/default/files/2011-05/befu11-pt6of8.pdf.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearalistingbycategoryofallnonfinancialassetsheldbythegovernmentaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtononfinancialassetsispresented,butsomenonfinancialassetsarenotincluded.Answer“d”appliesifnoinformationispresentedonnonfinancialassetsheldbythegovernment.

Answer:d.No,informationrelatedtononfinancialassetsisnotpresented.

Source:TheBudgetProposaldocumentsdonotcontainanyinformationonnon-financialassets.



GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,informationispresented,butitexcludessomenonfinancialassets.Comments:TableE.4(BalanceSheetofSelectedGovernmentCorporations,FY2019)oftheFY2019BESFpresentsnonfinancialassets(fixedassets-equipment,landandrelatedimprovementsandothers)heldbyGovernmentCorporations.Weblink:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E4.pdf

IBPCommentThankyoutothegovernmentreviewerfornotingtheassetsheldbystate-ownedcorporations.Thisquestionasksaboutassetsheldbythecentralgovernment,however.Therefore,thereresearcher'soriginalresponseofDisconfirmed.

41.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofexpenditurearrearsforatleastthebudgetyear?

GUIDELINES:Question41asksaboutestimatesofexpenditurearrears,whicharisewhengovernmenthasenteredintoacommitmenttospendfundsbuthasnotmadethepaymentwhenitisdue.(Formoreinformationseesections3.49-3.50oftheIMF’sGFSManual2001,

https://treasury.govt.nz/sites/default/files/2011-05/befu11-pt6of8.pdf

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf(page29)).Thoughequivalenttoborrowing,thisliabilityisoftennotrecordedinthebudget,makingitdifficulttoassessfullyagovernment’sfinancialposition.Moreover,theobligationtorepaythisdebtaffectsthegovernment’sabilitytopayforotheractivities.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallexpenditurearrearsandanarrativediscussingthearrears.Ifanarrativediscussionisnotincluded,butestimatesforallexpenditurearrearsarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,expenditurearrears(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofexpenditurearrearsarepresented.

Ifexpenditurearrearsdonotrepresentasignificantprobleminyourcountry,pleasemark“e.”However,pleaseexercisecautioninansweringthisquestion.Publicexpendituremanagementlawsandregulationsoftenwillallowforreasonabledelays,perhaps30or60days,intheroutinepaymentofinvoicesdue.Expenditurearrearsimpactingasmallpercentageofexpenditurethatareduetocontractualdisputesshouldnotbeconsideredasignificantproblemforthepurposeofansweringthisquestion.

Answer:d.No,estimatesofexpenditurearrearsarenotpresented.

Source:TheBudgetProposaldocumentsdonotcontainanyinformationonexpenditurearrears.



GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,estimatesofsomebutnotallexpenditurearrearsarepresented.Comments:TableE.4(BalanceSheetofSelectedGovernmentCorporations,FY2019)oftheFY2019BESFpresentsliabilitiesofGovernmentCorporations.Weblink:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E4.pdf

IBPCommentThankyoutothegovernmentreviewerforthereference.However,liabilitiesofpubliccorporationsarenotthesameastheexpenditurearrearsofthegovernment.Theresearcher'sscoreofDisconfirmed.

42.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationoncontingentliabilities,suchasgovernmentloanguaranteesorinsuranceprograms?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforeachcontingentliability;thenewguaranteesorinsurancecommitmentsproposedforthebudgetyear;andthetotalamountofoutstandingguaranteesorinsurancecommitments(thegrossexposure)attheendofthebudgetyear.)

GUIDELINES:

Question42focusesoncontingentliabilities,askingwhether“core”informationrelatedtotheseliabilitiesispresented.Thesecorecomponentsinclude:

astatementofpurposeorpolicyrationaleforeachcontingentliability;thenewcontingentliabilitiesforthebudgetyear,suchasnewguaranteesorinsurancecommitmentsproposedforthebudgetyear;andthetotalamountofoutstandingguaranteesorinsurancecommitmentsattheendofthebudgetyear.Thisreflectsthegrossexposureofthegovernmentinthecasethatallguaranteesorcommitmentscomedue(eventhoughthatmaybeunlikelytooccur).

Contingentliabilitiesarerecognizedunderacashaccountingmethodonlywhenthecontingenteventoccursandthepaymentismade.Anexampleofsuchliabilitiesisthecaseofloansguaranteedbythecentralgovernment,whichcanincludeloanstostate-ownedbanksandotherstate-ownedcommercialenterprises,subnationalgovernments,orprivateenterprises.Undersuchguarantees,governmentwillonlymakeapaymentiftheborrowerdefaults.Thusakeyissueformakingquantitativeestimatesoftheseliabilitiesisassessingthelikelihoodofthecontingencyoccurring.

Inthebudget,accordingtotheOECD,“[w]herefeasible,thetotalamountofcontingentliabilitiesshouldbedisclosedandclassifiedbymajorcategoryreflectingtheirnature;historicalinformationondefaultsforeachcategoryshouldbedisclosedwhereavailable.Incaseswherecontingentliabilitiescannotbequantified,theyshouldbelistedanddescribed.”

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutcontingentliabilities,includingforexample:historicaldefaultratesforeachprogram,andlikelydefaultratesinthefuture;themaximumguaranteethatisauthorizedbylaw;anyspecialfinancingassociatedwiththeguarantee

http://www.imf.org/external/pubs/ft/gfs/manual/pdf/all.pdf

(e.g.,whetherfeesarecharged,whetherareservefundexistsforthepurposeofpayingoffguarantees,etc.);thedurationofeachguarantee;andanestimateofthefiscalsignificanceandpotentialrisksassociatedwiththeguarantees.

Formoredetailsoncontingentliabilities,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andpage59(Box11)andPrinciple3.2.3oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearallofthecoreinformationrelatedtocontingentliabilitiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtocontingentliabilitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedoncontingentliabilities.

Answer:c.Yes,informationispresented,butitexcludessomecoreelementsorsomecontingentliabilities.



TableD.5,BESFFY2019,pages485-486:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/D5.pdf

TableE.4,BESFFY2019,pages496-499:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/E4.pdf

Comment:TheBESFFY2019presentinTablesD.3,D.4andD.5presentthegovernment’soutstandingdomesticandforeigndebtfromliabilitiesalreadyassumedbytheNationalGovernment.Ontheotherhand,TableE.4showsthebalancesheetofselectgovernmentcorporations,includingsummariesoftheircurrentandlong-termdomesticandforeignliabilities.However,thepolicyrationaleforeachcontingentliabilityisnotavailable.



ResearcherResponseThereisagreementon"c"astheappropriateanswerwithduerecognitiontotheadditionalcommentsoftheGovernmentReviewerthatSpecialProvisionNo.4undertheUnprogrammedAppropriations(2019NEPpage1091)discussesthecoverageoftheRiskManagementProgram,whichistocovercommitmentsmadeby,andobligationsoftheNationalGovernmentinPPPconcessionagreements.Also,the2019FiscalRisksStatementscontaindedicatedsectionsdiscussingcontingentcentralgovernmentobligations(pages35-58)andgovernmentstepstomitigatesuchrisks.

43.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentprojectionsthatassessthegovernment’sfutureliabilitiesandthesustainabilityofitsfinancesoverthelongerterm?

(Thecoreinformationmustcoveraperiodofatleast10yearsandincludethemacroeconomicanddemographicassumptionsusedandadiscussionofthefiscalimplicationsandriskshighlightedbytheprojections.)

GUIDELINES:

Question43focusesongovernment’sfutureliabilitiesandthesustainabilityofitsfinancesoverthelonger-term,askingwhether“core”informationrelatedtotheseissuesispresented.Thesecorecomponentsmustinclude:

Projectionsthatcoveraperiodofatleast10years.Themacroeconomicanddemographicassumptionsusedinmakingtheprojections.Adiscussionofthefiscalimplicationsandriskshighlightedbytheprojections.Goodpublicfinancialmanagementcallsforbudgetstoincludefiscalsustainabilityanalyses.

TheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml)recommendsthatgovernmentsregularlypublishtheprojectedevolutionofthepublicfinancesoverthelongerterm(seePrinciple3.1.3.).Futureliabilitiesareaparticularlyimportantelementwhenassessingthesustainabilityofpublicfinancesoverthelongterm.Futureliabilitiesaretheresultofgovernmentcommitmentsthat,unlikecontingentliabilities,arevirtuallycertaintooccuratsomefuturepointandresultinanexpenditure.Atypicalexampleconsistsofgovernmentobligationstopaypensionbenefitsorcoverhealthcarecostsoffutureretirees.Underacashaccountingsystem,onlycurrent




paymentsassociatedwithsuchobligationsarerecognizedinthebudget.Tocapturethefutureimpactonthebudgetoftheseliabilities,aseparatestatementisrequired.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationaboutthesustainabilityoftheirfinances,includingforexample:projectionsthatcover20or30years;multiplescenarioswithdifferentsetsofassumptions;assumptionsaboutotherfactors(suchasthedepletionofnaturalresources)thatgobeyondjustthecoremacroeconomicanddemographicdata;andadetailedpresentationofparticularprogramsthathavelongtimehorizons,suchascivilservicepensions.

Formoredetailsonfutureliabilities,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecoreinformationrelatedtofutureliabilitiesandthesustainabilityofgovernmentfinancesoverthelongertermaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtofutureliabilitiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonfutureliabilitiesandthesustainabilityofgovernment’sfinances

Answer:d.No,informationrelatedtofutureliabilitiesandthesustainabilityoffinancesoverthelongertermisnotpresented.

Source:ChapterXXXIX,NationalExpenditureProgram(NEP)FY2019,pages1069-1078:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/MPBF.pdf

ChapterXL,NEPFY2019,pages1079-1088:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/PGF.pdf

Comment:TheNEPFY2017showssomeinformationonfutureliabilitiesinChapterXXXIX,pages1069-1078,titled“MiscellaneousPersonnelBenefitsFund”andChapterXL,pages1079-1088,titled“PensionandGratuityFund.”Thedocument,however,lackscoreinformationsuchasprojectionsforatleast10years.



44.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofthesourcesofdonorassistance,bothfinancialandin-kind?

GUIDELINES:Question44asksaboutestimatesofdonorassistance,bothfinancialandin-kindassistance.Suchassistanceisconsiderednon-taxrevenue,andthesourcesofthisassistanceshouldbeexplicitlyidentified.Intermsofin-kindassistance,theconcernisprimarilywiththeprovisionofgoods(particularlythoseforwhichthereisamarketthatwouldallowgoodsreceivedasin-kindaidtobesold,therebyconvertingthemintocash)ratherthanwithin-kindaidlikeadvisorsfromadonorcountryprovidingtechnicalassistance.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringalldonorassistanceandanarrativediscussingtheassistance.Ifanarrativediscussionisnotincluded,butestimatesforalldonorassistancearepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,donorassistance(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“c”alsoappliesifthesourcesofdonorassistancearenotpresented,butthetotalamountofdonorassistanceispresentedasasinglelineitem.Answer“d”appliesifnoestimatesofdonorassistancearepresented.Selectanswer“e”ifyourcountrydoesnotreceivedonorassistance.

Answer:a.Yes,estimatesofallsourcesofdonorassistancearepresented,alongwithanarrativediscussion.


TableB.14,BESF2019,pages406-409:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B14.pdf

Comment:


TheBESFFY2019inTableB.13,pages402-405,titled“Foreign-AssistedProjects,ByDepartment/Agency,FY2017-2019,”andTableB.14,pages406-409,titled“Foreign-AssistedProjects,ByDonor/Creditor,FY2017-2019,”provideestimatesofallsourcesofdonorassistance.However,anarrativediscussionisnotincluded.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,estimatesofallsourcesofdonorassistancearepresented,alongwithanarrativediscussion.Comments:Pages34-36oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionoftheForeign-AssistedProjects.Weblink:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

ResearcherResponseTherevisedansweris"a".AspointedoutbytheGovernmentReviewer,pages34-36oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionoftheForeign-AssistedProjects.https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

45.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationontaxexpendituresforatleastthebudgetyear?

(Thecoreinformationmustincludeastatementofpurposeorpolicyrationaleforeachtaxexpenditure,theintendedbeneficiaries,andanestimateoftherevenueforegone.)

GUIDELINES:Question45focusesontaxexpenditures,askingwhether“core”informationrelatedtothesetaxpreferencesispresented.Thesecorecomponentsmustincludeforbothnewandexistingtaxexpenditures:

astatementofpurposeorpolicyrationale;alistingoftheintendedbeneficiaries;andanestimateoftherevenueforegone.

Taxexpendituresariseasaresultofexceptionsorotherpreferencesinthetaxcodeprovidedforspecifiedentities,individuals,oractivities.Taxexpendituresoftenhavethesameimpactonpublicpolicyandbudgetsasprovidingdirectsubsidies,benefits,orgoodsandservices.Forexample,encouragingacompanytoengageinmoreresearchthroughaspecialtaxbreakcanhavethesameeffectassubsidizingitdirectlythroughtheexpendituresideofthebudget,asitstillconstitutesacostintermsofforegonerevenues.However,expenditureitemsthatrequireannualauthorizationarelikelytoreceivemorescrutinythantaxbreaksthatareapermanentfeatureofthetaxcode.

Beyondthecoreinformation,somegovernmentsmayalsoprovideotherinformationabouttaxexpenditures,includingforexample:theintendedbeneficiariesbysectorandincomeclass(distributionalimpact);astatementoftheestimatingassumptions,includingthedefinitionofthebenchmarkagainstwhichtheforegonerevenueismeasured;andadiscussionoftaxexpendituresaspartofageneraldiscussionofexpendituresforthoseprogramareasthatreceivebothtypesofgovernmentsupport(inordertobetterinformpolicychoices).Formoredetailsontaxexpenditures,seeGuidetoTransparencyinPublicFinances:LookingBeyondtheCoreBudget(http://internationalbudget.org/wp-content/uploads/Looking-Beyond-the-Budget.pdf)andPrinciple1.1.4oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,allofthecoreinformationrelatedtotaxexpendituresaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtotaxexpendituresispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedontaxexpenditures.

Answer:c.Yes,informationispresented,butitexcludessomecoreelementsorsometaxexpenditures.

Source:TableJ.1.c,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page777:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/J1c.pdf

TableJ.1.d,BESFFY2019,pages778-788:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/J1d.pdf

Comment:TheBESFFY2019presentsinTableJ.1.c,page777,titled“InvestmentTaxExpenditures,ByInvestmentPromotionAgency(IPA),ByTypeofTaxIncentives,FY2015-2017,”andTableJ.1.d,pages778-788,titled“IPA,BySector,ByTypeofTaxIncentives,FY2016-2017,”someinformationontaxexpenditures.ThereisonelineinstatementB20thatprojectstaxexpendituresfor2019:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/B20.pdf





46.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofearmarkedrevenues?

GUIDELINES:Question46asksaboutestimatesofearmarkedrevenues,whicharerevenuesthatmayonlybeusedforaspecificpurpose(forexample,revenuesfromataxonfuelthatcanonlybeusedforbuildingroads).Thisinformationisimportantindeterminingwhichrevenuesareavailabletofundthegovernment’sgeneralexpenses,andwhichrevenuesarereservedforparticularpurposes.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentforatleastthebudgetyearbothestimatescoveringallearmarkedrevenuesandanarrativediscussingtheearmarks.Ifanarrativediscussionisnotincluded,butestimatesforallearmarkedrevenuesarepresented,thena“b”answerisappropriate.A“c”responseappliesifthepresentationincludesestimatescoveringonlysome,butnotall,earmarkedrevenues(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoestimatesofearmarkedrevenuesarepresented.An“e”responseappliesifrevenueisnotearmarkedorthepracticeisdisallowedbylaworregulation.

Answer:a.Yes,estimatesofallearmarkedrevenuesarepresented,alongwithanarrativediscussion.


Comment:TheBESFFY2019providesinTableB.15titled“EarmarkedRevenues,2017-2019,”pages410-416,estimatesofallearmarkedrevenuesforthebudgetyear.However,anarrativediscussionisnotincluded.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,estimatesofallearmarkedrevenuesarepresented,alongwithanarrativediscussion.Comments:Pages32-34oftheTechnicalNotesonthe2019ProposedNationalBudgetprovidesanarrativediscussionofEarmarkedRevenues.Weblink:https://www.dbm.gov.ph/index.php/budget-documents/2019/technical-notes-on-the-2019-proposed-national-budget

ResearcherResponseSinceanarrativediscussionisprovidedonpages32-34oftheTechnicalNotesonthe2019ProposedNationalBudget,Iproposetochangetheanswerfrom"b"to"a".

47.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonhowtheproposedbudget(bothnewproposalsandexistingpolicies)islinkedtogovernment’spolicygoalsforthebudgetyear?

GUIDELINES:Questions47and48askaboutinformationthatshowshowthebudget(bothnewproposalsandexistingpolicies)islinkedtothegovernment’spolicygoals.Thebudgetistheexecutive’smainpolicydocument,theculminationoftheexecutive’splanningandbudgetingprocesses.Therefore,itshouldincludeacleardescriptionofthelinkbetweenpolicygoalsandthebudget—thatis,anexplicitexplanationofhowthegovernment’spolicygoalsarereflectedinitsbudgetchoices.Foranexampleofadiscussionofagovernment’spolicygoalsinthebudget,seepages13-18ofNewZealand’s2011StatementofIntent(http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16),oneofthemanydocumentssupportingitsbudget.

Insomecountriesthegovernmentpreparesstrategic/developmentplans.Theseplansincludeallthepoliciesthegovernmentisplanningtoimplementforthebudgetyearandveryoftencoveramulti-yearperspective.Insomecases,theseplansdonotmatchthebudgetdocumentation,anditispossiblethattheyarecompletelydisconnectedfromtheExecutive’sBudgetProposal.Sothequestionisexaminingwhethergovernmentpolicyplansare“translated”intorevenueandexpenditurefiguresintheactualbudgetdocuments.

http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16

Question47asksabouttheinformationcoveringthebudgetyear,andQuestion48asksabouttheperiodatleasttwoyearsbeyondthebudgetyear.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowthebudgetislinkedtogovernment’spolicygoalsforthebudgetyear(forQuestion47)orforamulti-yearperiodbeyondthebudgetyear(forQuestion48)andanarrativediscussionofhowthesepolicygoalsarereflectedinthebudget.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowhowthebudgetislinkedtogovernment’spolicygoals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowhowthebudgetislinkedtosome,butnotall,ofthegovernment’spolicygoals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedonhowthebudgetislinkedtogovernment’spolicygoals.

Answer:a.Yes,estimatesthatshowhowtheproposedbudgetislinkedtoallthegovernment’spolicygoalsforthebudgetyeararepresented,alongwithanarrativediscussion.

Source:President’sBudgetMessageFY2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/president-budget-message-fy-2019


Comment:ThePresident’sBudgetMessageFY2019,especiallythesectiononBudgetPrioritiesonpages14-39,providesestimatesandanarrativeonhowtheproposedbudgetislinkedtothepolicygoalsforthebudgetyear.ThisisalsoelaboratedintheTechnicalNotesonthe2019ProposedNationalBudget,particularlyinSectionIV(ExpenditurePriorities),pages37-108.



48.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentinformationonhowtheproposedbudget(bothnewproposalsandexistingpolicies)islinkedtogovernment’spolicygoalsforamulti-yearperiod(foratleasttwoyearsbeyondthebudgetyear)?

GUIDELINES:Questions47and48askaboutinformationthatshowshowthebudget(bothnewproposalsandexistingpolicies)islinkedtothegovernment’spolicygoals.Thebudgetistheexecutive’smainpolicydocument,theculminationoftheexecutive’splanningandbudgetingprocesses.Therefore,itshouldincludeacleardescriptionofthelinkbetweenpolicygoalsandthebudget—thatis,anexplicitexplanationofhowthegovernment’spolicygoalsarereflectedinitsbudgetchoices.Foranexampleofadiscussionofagovernment’spolicygoalsinthebudget,seepages13-18ofNewZealand’s2011StatementofIntent(http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16),oneofthemanydocumentssupportingitsbudget.

Insomecountriesthegovernmentpreparesstrategic/developmentplans.Theseplansincludeallthepoliciesthegovernmentisplanningtoimplementforthebudgetyearandveryoftencoveramulti-yearperspective.Insomecases,theseplansdonotmatchthebudgetdocumentation,anditispossiblethattheyarecompletelydisconnectedfromtheExecutive’sBudgetProposal.Sothequestionisexaminingwhethergovernmentpolicyplansare“translated”intorevenueandexpenditurefiguresintheactualbudgetdocuments.

Question47asksabouttheinformationcoveringthebudgetyear,andQuestion48asksabouttheperiodatleasttwoyearsbeyondthebudgetyear.Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentbothestimatesofhowthebudgetislinkedtogovernment’spolicygoalsforthebudgetyear(forQuestion47)orforamulti-yearperiodbeyondthebudgetyear(forQuestion48)andanarrativediscussionofhowthesepolicygoalsarereflectedinthebudget.Toanswer“b”foreitherquestion,theExecutive’sBudgetProposalorsupportingdocumentationmustpresentestimatesthatshowhowthebudgetislinkedtogovernment’spolicygoals,butnonarrativediscussionisincluded.A“c”responseappliesifthepresentationincludesonlyanarrativediscussion,orifitincludesestimatesthatshowhowthebudgetislinkedtosome,butnotall,ofthegovernment’spolicygoals(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”appliesifnoinformationispresentedonhowthebudgetislinkedtogovernment’spolicygoals.

Answer:a.Yes,estimatesthatshowhowtheproposedbudgetislinkedtoallthegovernment’spolicygoalsforamulti-yearperiodarepresented,alongwithanarrativediscussion.

Source:TableA.2.,BudgetofExpendituresandSourcesofFinancing(BESF)FY2019,page2:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2019/A2.pdf


Comment:

http://www.treasury.govt.nz/publications/abouttreasury/soi/2011-16

TableA.2titled“NationalGovernmentFiscalProgram,2017-2021,”page2,oftheBESFFY2019providesrevenueanddisbursementprojectionsfor2020and2021.TheTechnicalNotesonthe2019ProposedNationalBudget,specificallySectionII(FinancingtheNationalExpenditureProgram),pages8-28,presentsanarrativediscussionofthenationalfiscalstrategytosupportthebudgetthatislinkedtopolicygoalsforamulti-yearperiod.



49.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentnonfinancialdataoninputstobeacquiredforatleastthebudgetyear?

GUIDELINES:Question49asksabouttheavailabilityofnonfinancialdataoninputsforthebudgetyear.(NonfinancialdataonoutputsandoutcomesareaddressedinQuestion50.)

Thebudgetshoulddisclosenotonlytheamountofmoneythatisbeingallocatedonaprogrambutalsoanyinformationneededtoanalyzethatexpenditure.Nonfinancialdataandperformancetargetsassociatedwithbudgetproposalsareusedtoassessthesuccessofagivenpolicy.Forexample,evenwhenallocatedfundsarespentaccordingtoplan,thereremainsthequestionofwhetherthepolicydeliveredtheresultsthatitaimedtoachieve.

Nonfinancialdatacanincludeinformationon:

Inputs-Thesearetheresourcesassignedtoachieveresults.Forexample,inregardstoeducation,nonfinancialdataoninputscouldincludethenumberofbookstobeprovidedtoeachschoolorthematerialstobeusedtobuildorrefurbishaschool.Outputs-Theseareproductsandservicesdeliveredasaresultofinputs.Forexample,thenumberofpupilstaughteveryyear;thenumberofchildrenthatreceivedvaccines;orthenumberofbeneficiariesofasocialsecurityprogram.Outcomes-Thesearetheintendedimpactorpolicygoalsachieved.Forexample,anincreaseinliteracyratesamongchildrenunder10,orareductioninratesofmaternalmortality.

Inaddition,governmentsthatsetperformancetargetsmustusenonfinancialdataforoutputsandoutcomestodetermineifthesetargetshavebeenmet.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,nonfinancialdataoninputsforeachindividualprogramwithinalladministrativeunits(ministries,departments,andagencies).Itisalsoacceptableifnonfinancialdataoninputsforeachindividualprogramisorganizedbyfunctions.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentnonfinancialdataoninputsforalladministrativeunitsorallfunctions,butnotforeachindividualprogram(orevenforanyprograms)withinthoseadministrativeunitsorfunctions.A“c”responseappliesifnonfinancialdataoninputsarepresentedonlyforsomeprogramsand/orsomeadministrativeunitsorsomefunctions.Answer“d”appliesifnononfinancialdataoninputsispresented.

Answer:b.Yes,nonfinancialdataoninputsarepresentedforalladministrativeunits(orfunctions)butnotforall(orany)programs.

Source:StaffingSummary2019:https://www.dbm.gov.ph/index.php/budget-documents/2019/staffing-summary-2019


Comment:TheStaffingSummaryprovidesalistingofthenumberofauthorizedandfilledpositionsbyadministrativeunit.SectionIV(ExpenditurePriorities),pages37-108oftheTechnicalNotesofthe2019ProposedNationalBudgetpresentsnon-financialdataasinputsforsomeprogramsandadministrativeunits.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,nonfinancialdataoninputsarepresentedforalladministrativeunits(orfunctions)butnotforall(orany)programs.Comments:TheStaffingSummarypresentsdataonnon-financialinputs(i.e.,listingofthenumberofauthorizedandfilledpositions)forALLadministrativeunits.ThismeritsaratingofBandnotC.

ResearcherResponse

Therevisedansweris"b".TheStaffingSummarypresentsdataonnon-financialinputs(i.e.,listingofthenumberofauthorizedandfilledpositions)foralladministrativeunits.

50.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentnonfinancialdataonresults(intermsofoutputsoroutcomes)foratleastthebudgetyear?

GUIDELINES:Question50asksabouttheavailabilityofnonfinancialdataonresultsforthebudgetyear.Nonfinancialdataonresultscanincludedataonbothoutputsandoutcomes,butnotoninputs(whichareaddressedinQuestion49).Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresent,foratleastthebudgetyear,nonfinancialdataonresultsforeachindividualprogramwithinalladministrativeunits(ministries,departments,andagencies).Itisalsoacceptableifnonfinancialdataonresultsforeachindividualprogramisorganizedbyfunctionalclassification.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustpresentnonfinancialdataonresultsforalladministrativeunitsorallfunctionalclassifications,butnotforeachindividualprogram(orevenforanyprograms)withinthoseadministrativeunitsorfunctions.A“c”responseappliesifnonfinancialdataonresultsarepresentedonlyforsomeprogramsand/orsomeadministrativeunitsorsomefunctions.Answer“d”appliesifnononfinancialdataonresultsispresented.

Answer:b.Yes,nonfinancialdataonresultsarepresentedforalladministrativeunits(orfunctions)butnotforall(orany)programs.


CongressofthePhilippines,NEPFY2019,pages2-26:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/CONGRESS/CONGRESS.pdf

Comment:TheNEPFY2019presentsnon-financialdataonoutputs.ThePerformance-InformedBudgetingapproachwasappliedtoguidetheallocationoffunds.ThemajorfinaloutputsandperformanceindicatorsoftheagenciesarepresentedintheNEPFY2019.However,theNEPFY2019showsonpages2-26thatsomeagenciesliketheSenateandHouseofRepresentativeshaveincompleteperformanceinformation.



51.AreperformancetargetsassignedtononfinancialdataonresultsintheExecutive’sBudgetProposaloranysupportingbudgetdocumentation?

GUIDELINES:Question51asksaboutperformancetargetsassignedtononfinancialdataonresultsforthebudgetyear.Thequestionappliestothosenonfinancialresultsshowninthebudget,andthatwereidentifiedforpurposesofQuestion50.

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustassignperformancetargetstoallnonfinancialdataonresultsshowninthebudgetforatleastthebudgetyear.Toanswer“b,”theExecutive’sBudgetProposalorsupportingdocumentationmustassignperformancetargetstoamajority(butnotall)ofthenonfinancialdataonresultsshowninthebudget.A“c”responseappliesperformancetargetsareassignedonlytolessthanhalfofthenonfinancialdataonresults.Answer“d”appliesifnoperformancetargetsareassignedtononfinancialdataonresultsshowninthebudget,orthebudgetdoesnotpresentnonfinancialresults.

Answer:b.Yes,performancetargetsareassignedtomostnonfinancialdataonresults.


CongressofthePhilippines,NEPFY2019,pages2-26:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/CONGRESS/CONGRESS.pdf

Comment:TheNEPFY2019presentsperformancetargetfornon-financialdata.MostoftheDepartmentshaveidentifiedperformancetargets,exceptforsomeofficessuchastheSenateandHouseofRepresentativeswhichhaveincompleteperformanceinformation.



52.DoestheExecutive’sBudgetProposaloranysupportingbudgetdocumentationpresentestimatesofpolicies(bothnewproposalsandexistingpolicies)thatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsinatleastthebudgetyear?

GUIDELINES:Question52askswhetherthebudgethighlightpolicies,bothnewandexisting,thatbenefitthepoorestsegmentsofsociety.Thisquestionisintendedtoassessonlythoseprogramsthatdirectlyaddresstheimmediateneedsofthepoor,suchasthroughcashassistanceprogramsortheprovisionofhousing,ratherthanindirectly,suchasthroughastrongernationaldefense.Thisinformationisofparticularinteresttothoseseekingtobolstergovernment’scommitmenttoanti-povertyefforts.Forpurposesofansweringthisquestion,adepartmentalbudget(suchfortheDepartmentofSocialWelfare)wouldnotbeconsideredacceptable.Ingeneral,thisquestionisaskingwhethertheEBPincludesaspecialpresentationthatpullstogetherestimatesofalltherelevantpoliciesinoneplace.However,ifthecountryuses“programbudgeting,”whereprogramsarepresentedasexpenditurecategorieswithspecificandidentifiedobjectives,anditidentifiesanti-povertyprogramswithineachadministrativeunit,thenthatisalsoacceptableforthisquestion.

TheIBPBudgetBrief,“HowTransparentareGovernmentsWhenitComestoTheirBudget’sImpactonPovertyandInequality?”(https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf)includesadiscussionofcountriesthathaveprovidedinformationonhowitspoliciesaffectthepoor.

Forinstance,Pakistanprovidesadetailedbreakdownofpro-poorexpenditureaspartofits2017-18budgetproposal.Inonedocument,thegovernmentsetsoutpolicypriorities,expectedoutputs,andestimatesofpastandfuturespendingforseveralprogramsaimedatpovertyalleviation.Anothersupportingdocumentprovidesacomprehensiveoverviewofongoingpolicies,includingachapteronsocialsafetynets,coveringbothfinancialandperformanceinformationofpovertyalleviationschemesoveraperiodofeightyears.(http://www.finance.gov.pk/budget/mtbf_2018_21.pdfandhttp://www.finance.gov.pk/survey_1718.html).

Toanswer“a,”theExecutive’sBudgetProposalorsupportingdocumentationmustforatleastthebudgetyearbothpresentestimatescoveringallpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsandincludeanarrativediscussionthatspecificallyaddressesthesepolicies.(Forcountriesusingprogrambudgetingthatbreaksoutindividualanti-povertyprograms,thereshouldbeaseparatenarrativeassociatedwitheachsuchprogram.)Answer“b”ifanarrativediscussionisnotincluded,butestimatesforallpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsarepresented.Answer“c”ifthepresentationincludesestimatescoveringonlysome,butnotall,policiesthatareintendedtobenefitthemostimpoverishedpopulations(regardlessofwhetheritalsoincludesanarrativediscussion).Answer“d”ifnoestimatesofpoliciesthatareintendedtobenefitthemostimpoverishedpopulationsarepresented.

Answer:a.Yes,estimatesofallpoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsarepresented,alongwithanarrativediscussion.


Comment:TheTechnicalNotesonthe2019ProposedNationalBudget,especiallySectionIV.D,pages86-93,providesestimatescoveringallpoliciesthatareintendedtobenefitthemostimpoverishedpopulations.AnarrativediscussionispresentedonpoliciestoincreasetheresilienceofpoorandvulnerableindividualsthroughsocialprotectionmechanismsincludingthePantawidPamilyangPilipinoProgram(ConditionalCashTransferProgram),SustainableLivelihoodProgram,andSocialPensionforIndigentSeniorCitizens.



53.DoestheexecutivereleasetothepublicitstimetableforformulatingtheExecutive’sBudgetProposal(thatis,adocumentsettingdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernment

https://www.internationalbudget.org/wp-content/uploads/government-transparency-of-budgets-impact-on-poverty-inequality-ibp-2019.pdf

http://www.finance.gov.pk/budget/mtbf_2018_21.pdf

http://www.finance.gov.pk/survey_1718.html

agencyisinchargeofcoordinatingthebudget’sformulation)?

GUIDELINES:Question53asksaboutthebudgettimetable.Aninternaltimetableisparticularlyimportantfortheexecutive’smanagementofthebudgetpreparationprocess,inordertoensurethattheexecutiveaccountsfortheviewsofthedifferentdepartmentsandagenciesintheproposedbudget.Thetimetablewould,forinstance,setdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernmentagencyisinchargeofcoordinatingthebudget’sformulation.Sothatcivilsocietyisawareofthevariousstepsinthebudgetformulationprocess,andwhenopportunitiesmayexisttoengagetheexecutive,itisessentialthatthistimetablebemadeavailabletothepublic.

Toanswer“a,”theexecutivemustprepareadetailedbudgettimetableandreleaseittothepublic.A“b”answerappliesifthetimetableismadepublic,butsomedetailsarenotincluded.A“c”responseappliesifthetimetableismadepublic,butmanyimportantdetailsareexcluded,reducingitsvalueforthoseoutsidegovernment.Answer“d”appliesifnotimetableismadeavailabletothepublic.AslongasatimetableforformulatingtheExecutive’sBudgetProposalisreleased,answer“a,”“b,”or“c”maybeselected,eveniftheExecutive’sBudgetProposalisnotmadepubliclyavailable.

Answer:a.Yes,adetailedtimetableisreleasedtothepublic.

Source:AnnexC(CalendarofActivities),NationalBudgetMemorandumNo.129,January3,2018;https://www.dbm.gov.ph/wpcontent/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No129.pdf

https://www.dbm.gov.ph/index.php/issuances/dbm-issuances/national-budget-memorandum#2018

Comment:ADetailedBudgetPreparationCalendariscontainedinAnnexC(CalendarofActivities)ofNationalBudgetMemorandumNo.129(BudgetCallforFY2019).ThiswasreleasedtothepubliconJanuary3,2018.



54.DoesthePre-BudgetStatementpresentinformationonthemacroeconomicforecastuponwhichthebudgetprojectionsarebased?

(ThecoreinformationmustincludeadiscussionoftheeconomicoutlookwithestimatesofnominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates.)

GUIDELINES:

Question54focusesonthemacroeconomicforecastthatunderliesthePre-BudgetStatement,askingwhether“core”informationrelatedtotheeconomicassumptionsispresented.Thesecorecomponentsincludeadiscussionoftheeconomicoutlookaswellasestimatesofthefollowing:

nominalGDPlevel;inflationrate;realGDPgrowth;andinterestrates.

Beyondthesecoreelements,somegovernmentsalsoprovideadditionalinformationrelatedtotheeconomicoutlook,includingforinstance:short-andlong-terminterestrates;therateofemploymentandunemployment;GDPdeflator;priceofoilandothercommodities;currentaccount;exchangerate;andcompositionofGDPgrowth.

Toanswer“a,”thePre-BudgetStatementmustpresentallofthecoreinformationrelatedtothemacroeconomicforecastaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothemacroeconomicforecastispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthemacroeconomicforecastispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthemacroeconomicforecast.

Source:NationalBudgetMemorandumNo.130(BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2,April13,2018,pages2-7:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Comment:NationalBudgetMemorandumNo.30presentsonpages2-7allthecoreinformationrelatedtothemacroeconomicforecast.SeeTable1onp.3forprojectionsofrealGDPgrowth,inflationratesandinterestrates(LIBORandTreasuryBillRates).Table2onp.5includesnominalGDPprojections.

Additionalinformationbeyondthecoreelementsareprovided,includingexchangerate,compositionofGDPgrowthandunemploymentrate.



55.DoesthePre-BudgetStatementpresentinformationonthegovernment’sexpenditurepoliciesandprioritiesthatwillguidethedevelopmentofdetailedestimatesfortheupcomingbudget?

(Thecoreinformationmustincludeadiscussionofexpenditurepoliciesandprioritiesandanestimateoftotalexpenditures.)

GUIDELINES:

Question55focusesonthegovernment’sexpenditurepoliciesandprioritiesinthePre-BudgetStatement,askingwhether“core”informationrelatedtothesepoliciesispresented.Thesecorecomponentsinclude:

adiscussionofexpenditurepoliciesandpriorities;andanestimateoftotalexpenditures.

AlthoughaPre-BudgetStatementisunlikelytoincludedetailedprogrammaticproposals(suchdetailedinformationistypicallyonlypresentedinthebudgetitself),itshouldincludeadiscussionofbroadpolicyprioritiesandaprojectionofatleasttotalexpendituresassociatedwiththesepoliciesforthebudgetyear.ThePre-BudgetStatementcanincludesomedetail,forinstance,estimatesprovidedbyanyofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications.

Toanswer“a,”thePre-BudgetStatementmustpresentfortheupcomingbudgetyearallofthecoreinformationrelatedtothegovernment’sexpenditurepoliciesandprioritiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabovefortheupcomingbudgetyear.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothegovernment’sexpenditurepoliciesandprioritiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthegovernment’sexpenditurepoliciesandprioritiesispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthegovernment’sexpenditurepoliciesandpriorities.

Source:NationalBudgetMemorandumNo.130(BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2,April13,2018,Section4.0(ExpenditureDirectionsforFY2019),pages7-12:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Comment:NationalBudgetMemorandumNo.30presentsonpages7-12coreinformation,withadiscussionofbroadpolicypriorities,especiallyoninfrastructuredevelopmentandsocialservices,withaprojectionoftotalexpendituresassociatedwiththesepoliciesforthebudgetyear.Inaddition,AnnexAofprovidessomedetailofexpenditureestimatesbyadministrativeclassification.



56.DoesthePre-BudgetStatementpresentinformationonthegovernment’srevenuepoliciesandprioritiesthatwillguidethedevelopmentofdetailedestimatesfortheupcomingbudget?

(Thecoreinformationmustincludeadiscussionofrevenuepoliciesandprioritiesandanestimateoftotalrevenues.)

GUIDELINES:Question56focusesonthegovernment’srevenuepoliciesandprioritiesinthePre-BudgetStatement,askingwhether“core”informationrelatedtothesepoliciesispresented.Thesecorecomponentsinclude:

adiscussionofrevenuepoliciesandpriorities;andanestimateoftotalrevenue.

AlthoughaPre-BudgetStatementisunlikelytoincludedetailedrevenueproposals,itshouldincludeadiscussionofbroadpolicyprioritiesandaprojectionofatleastthetotalrevenueassociatedwiththesepoliciesforthebudgetyear.ThePre-BudgetStatementcanalsoincludemoredetail,forinstance,withestimatesprovidedbyrevenuecategory—taxandnon-tax—orsomeofthemajorindividualsourcesofrevenue,suchastheValueAddedTaxortheincometax.

Toanswer“a,”thePre-BudgetStatementmustpresentfortheupcomingbudgetyearallofthecoreinformationrelatedtothegovernment’srevenuepoliciesandprioritiesaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”thePre-BudgetStatementmustpresentallofthecorecomponentsnotedabovefortheupcomingbudgetyear.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothegovernment’srevenuepoliciesandprioritiesispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationonthegovernment’srevenuepoliciesandprioritiesispresented.

Answer:a.Yes,informationbeyondthecoreelementsispresentedforthegovernment’srevenuepoliciesandpriorities.

Source:NationalBudgetMemorandumNo.130(BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2,April13,2018,Section3.2(NationalGovernmentFiscalEnvironment,2018-2022),pages3-7:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Comment:NationalBudgetMemorandumNo.30presentsonpages3-7coreinformation,withadiscussionofbroadpolicypriorities,andaprojectionofatleastthetotalrevenueassociatedwiththesepoliciesforthebudgetyear.AdditionalinformationisprovidedwithestimatesfromtheimplementationoftheComprehensiveTaxReformProgram.



57.DoesPre-BudgetStatementpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:

Question57askswhetherthePre-BudgetStatementincludesthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingneededintheupcomingbudgetyear;

·thecentralgovernment’stotaldebtburdenattheendoftheupcomingbudgetyear;and

·theinterestpaymentsontheoutstandingdebtfortheupcomingbudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizens,banks,andbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.


Interestpaymentsonthedebt(ordebtservicecosts)aretypicallymadeatregularintervals,andthesepaymentsmustbemadeonatimelybasisinordertoavoiddefaultingonthedebtobligation.Interestpaymentsareseparatefromtherepaymentofprincipal,whichoccursonlywhentheloanhasmaturedand

mustbepaidbackinfull.

Toanswer“a,”thePre-BudgetStatementmustpresentallthreeestimatesofborrowinganddebtforatleasttheupcomingbudgetyear.Fora“b”answer,thePre-BudgetStatementmustpresenttwoofthosethreeestimates.Fora“c”answer,thePBSmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedinthePBS.

Answer:b.Yes,twoofthethreeestimatesrelatedtogovernmentborrowinganddebtarepresented.

Source:NationalBudgetMemorandumNo.130(BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2,April13,2018,page5:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Comment:NationalBudgetMemorandumNo.130presentsonTable2p.5estimatesofthetotaldebttoGDP(nominalGDPanddebtaspercentofGDP).


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,twoofthethreeestimatesrelatedtogovernmentborrowinganddebtarepresented.Comments:Inaddition,thebudgetdeficitwhichrepresentstheamountofnetnewborrowingrequiredforthebudgetyear(FY2019)ispresentedinTable2,page5ofNationalBudgetMemorandumNo.130.ThisreferstotheFiscalBalanceorthedifferencebetweenprojectedrevenuesanddisbursements.Wealsonotethatthiswasconsideredinthe2017OBS.

ResearcherResponseTherevisedansweris"b".Inaddition,thebudgetdeficitwhichrepresentstheamountofnetnewborrowingrequiredforthebudgetyear(FY2019)ispresentedinTable2,page5ofNationalBudgetMemorandumNo.130.

58.DoesthePre-BudgetStatementpresentestimatesoftotalexpendituresforamulti-yearperiod(atleasttwo-yearsbeyondthebudgetyear)?

GUIDELINES:Question58asksaboutmulti-yearexpenditureestimatesinthePre-BudgetStatement.

Toanswer“a,”expenditureestimatesforatleasttwoyearsbeyondtheupcomingbudgetyearmustbepresented.Theestimatesmustbeforatleasttotalexpenditures,butcouldincludemoredetailthanjusttheaggregatetotal.

Answer:a.Yes,multi-yearexpenditureestimatesarepresented.

Source:NationalBudgetMemorandumNo.130(BudgetPrioritiesFrameworkforthePreparationoftheFY2019AgencyBudgetProposalsunderTier2,April13,2018,page5"Disbursements"presentsprojectionsforaggregateexpendituresforupto2022(BY+3):https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No130.pdf

Comment:NationalBudgetMemorandumNo.130presentsonpages8-9expenditureestimatesfor2019and2020,oronlyayearbeyondthebudgetyear.



ResearcherResponseThecommentofthePeerReviewerisdulynoted.Thereferencetopages8-9israthermisplaced.

59.DoestheEnactedBudgetpresentexpenditureestimatesbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question59asksifexpenditureestimatesintheEnactedBudgetarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theEnactedBudgetmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesmustbepresentedbytwoofthethreeclassifications.A“c”answerappliesifexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”appliesifexpenditureestimatesarenotpresentedbyanyofthethreeclassifications.

Answer:a.Yes,theEnactedBudgetpresentsexpenditureestimatesbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).

Source:GeneralAppropriationsActFY2018:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018

https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Comment:TheGeneralAppropriationsActFY2018providesexpenditureestimatesbyadministrativeunit.Eachagencybudgetisthenpresentedbyeconomicclassification.Expenditureestimatesarenotshownbyfunctionalclassification.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theEnactedBudgetpresentsexpenditureestimatesbyallthreeexpenditureclassifications(byadministrative,economic,andfunctionalclassification).Comments:Similartoourresponseinthe2017OBS,thefunctionalclassificationbasedonCOFOGinFY2018BESFTableB.7.bisupdatedbasedontheenactedbudgetandispublishedintheDBMwebsitetogetherwiththeFY2018GAA.ThewebpagewheretheupdatedtablesarelocatedisclearlylabeledtoindicatethattheselectedBESFtableswereupdatedbasedontheFY2018GAA.Weblinks:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/select-updated-besf-tables-based-on-fy-2018-gaahttps://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2018/BESF%20Table%20B.7.b.pdf

ResearcherResponseTheEnactedBudgetistheGAAratherthantheBESF.Theappropriateansweris"b".

IBPCommentDuringanIBPreview,thisscoreisrevisedtoA,astheBESFtablesareupdatedandre-postedfollowingtheapprovalofthelegislature.Seeallupdatedtables:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/select-updated-besf-tables-based-on-fy-2018-gaaThefunctionalclassificationispresentedthereforeinboththeproposedversionandapprovedversionsoftheBESFtables.EBPversion:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2018/B7a.pdfEBversion,citedforthisquestion:https://www.dbm.gov.ph/wp-content/uploads/BESF2018/Table-B.7.pdf(PublishedJanuary21,2018,whichiswithinthreemonthsoftheapprovalofthebudgetonDecember19,2018)

59b.BasedontheresponsetoQuestion59,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheEnactedBudget:

Answer:AdministrativeclassificationEconomicclassificationFunctionalclassification

Source:

GeneralAppropriationsActFY2018:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018

https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdf

Comment:TheGeneralAppropriationsActFY2018providesexpenditureestimatesbyadministrativeunit.Eachagencybudgetisthenpresentedbyeconomicclassification.Expenditureestimatesarenotshownbyfunctionalclassification.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:Similartoourresponseinthe2017OBS,thefunctionalclassificationbasedonCOFOGinFY2018BESFTableB.7.bisupdatedbasedontheenactedbudgetandispublishedintheDBMwebsitetogetherwiththeFY2018GAA.ThewebpagewheretheupdatedtablesarelocatedisclearlylabeledtoindicatethattheselectedBESFtableswereupdatedbasedontheFY2018GAA.

ResearcherResponseTheEnactedBudgetistheGAAwhiletheBESFispartoftheEBP.

IBPCommentDuringanIBPreview,thisscoreisrevisedtoincludethefunctionalclassifications,asthecitedBESFtablesareupdatedandre-postedfollowingtheapprovalofthelegislature.Seeallupdatedtables:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/select-updated-besf-tables-based-on-fy-2018-gaaThefunctionalclassificationispresentedthereforeinboththeproposedversionandapprovedversionsoftheBESFtables.EBPversion:https://www.dbm.gov.ph/wp-content/uploads/BESF/BESF2018/B7a.pdfEBversion,citedforthisquestion:https://www.dbm.gov.ph/wp-content/uploads/BESF2018/Table-B.7.pdf(PublishedJanuary21,2018,whichiswithinthreemonthsoftheapprovalofthebudgetonDecember19,2018)

60.DoestheEnactedBudgetpresentexpenditureestimatesforindividualprograms?

GUIDELINES:Question60asksifexpenditureestimatesintheEnactedBudgetarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theEnactedBudgetmustpresentallprograms,whichaccountforallexpenditures,inthebudgetyear.Toanswer“b,”theEnactedBudgetmustpresentexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesiftheEnactedBudgetpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogramintheEnactedBudget.

Answer:a.Yes,theEnactedBudgetpresentsestimatesforprogramsaccountingforallexpenditures.


https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME%20-1A_FINAL.pdfhttps://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GAZETTE-2018-VOLUME-1B_FINAL.pdf

Comment:TheGeneralAppropriationsActFY2018anditsannexesprovideexpenditureestimatesbyadministrativeunitsandspecialprogramfunds(SPFs).Program-leveldetailisavailableforalldepartmentsexceptforSPFsthatcannotbebrokendownanyfurther.



61.DoestheEnactedBudgetpresentrevenueestimatesbycategory(suchastaxandnon-tax)?

GUIDELINES:Question61askswhetherrevenueestimatesintheEnactedBudgetarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theEnactedBudgetmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,theEnactedBudgetpresentsrevenueestimatesbycategory.


Comment:TheGeneralAppropriationsActFY2018doesnotprovideinformationonrevenueestimates.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Notapplicable/other(pleasecomment).Comments:WereiterateourcommentsduringthepreviousOBS.UnderthePhilippinebudgetingsystem,theGAAapprovedbyCongressiscomposedofappropriations(expenditures),whilerevenuemeasuresareauthorizedinseparatelaws.Section22,ArticleVIIofthe1987Constitutionstatesthat"ThePresidentshallsubmittoCongress,withinthirtydaysfromtheopeningofeveryregularsessionasthebasisofthegeneralappropriationsbill,abudgetofexpendituresandsourcesoffinancing,includingreceiptsfromexistingandproposedrevenuemeasures."TheBESFsubmittedbythePresidenttoCongressprovidesestimatesonrevenuesbasedonexistingmeasuresapprovedbyCongressandproposednewrevenuemeasuresforapprovalasseparatelaws,andtheseserveasbasis(financingsource)fortheproposedappropriations.

ResearcherResponseTheEnactedBudgetistheGAAanditdoesnotpresentrevenueestimatesbycategory.

IBPCommentDuringanIBPreview,itisnotedthatintheCBoftheEBthereare,onp.6,categoriesofrevenuesshownforFY2018:https://www.dbm.gov.ph/index.php/budget-documents/2018/2018-people-s-budget/2018-people-s-budgetAstheCBcanbeconsideredasupportingdocumenttotheEnactedBudget,andispublishedwithinthreemonthsoftheapprovalofthebudget,thisscoreisrevisedfromBtoA.

62.DoestheEnactedBudgetpresentindividualsourcesofrevenue?

GUIDELINES:Question62askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheEnactedBudget.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theEnactedBudgetmustpresentallindividualsourcesofrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theEnactedBudgetmustpresentindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheEnactedBudgetpresentsindividualsourcesofrevenuethataccountforlessthantwo-thirdsofrevenues.Answer“d”appliesifindividualsourcesofrevenuearenotpresented.

Answer:d.No,theEnactedBudgetdoesnotpresentindividualsourcesofrevenue.


Comment:TheGeneralAppropriationsActFY2018doesnotprovideinformationonsourcesofrevenue.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:e.Notapplicable/other(pleasecomment).Comments:Similartoourcommentinitem#61,individualrevenuesourcesareavailableintheBESFwhichservesasthebasisoftheproposedappropriations.

IBPCommentThankyoutothegovernmentreviewer.SeealsoresponsetoQ61-howeverastherearenorevenuesineitherthecitizen'sbudgetoftheEBortheupdatedBESFtablesaboutindividualsourcesofrevenues,thisscoreremainsD.

63.DoestheEnactedBudgetpresentthreeestimatesrelatedtogovernmentborrowinganddebt:theamountofnetnewborrowingrequiredduringthebudgetyear;thetotaldebtoutstandingattheendofthebudgetyear;andinterestpaymentsonthedebtforthebudgetyear?

GUIDELINES:

Question63asksaboutthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingrequiredduringthebudgetyear;

·thetotaldebtoutstandingattheendofthebudgetyear;

·theinterestpaymentsontheoutstandingdebtforthebudgetyear.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizens,banks,andbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.



Toanswer“a,”theEnactedBudgetmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,theEnactedBudgetmustpresenttwoofthosethreeestimates.Fora“c”answer,theEnactedBudgetmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedintheEnactedBudget.

Answer:b.Yes,twoofthethreeestimatesrelatedtogovernmentborrowinganddebtarepresented.

Source:GeneralAppropriationsActFY2018,VolumeI-B,page1813:https://www.dbm.gov.ph/index.php/budget-documents/2018/general-appropriations-act-fy-2018/gaa-volume-ib

https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/ANNEX.pdf

Comment:TheGeneralAppropriationsActFY2018,VolumeI-B,presentsonpage1813informationoninterestpaymentsonoutstandingdebt.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:e.Notapplicable/other(pleasecomment).Comments:Similartoourcommentinitem#61,thenetnewborrowingsandthetotaldebtoutstandingareidentifiedintheBESF.Togetherwiththerevenueprojections,itwillserveasthebasisoftheproposedappropriations.

ResearcherResponseTheEnactedBudgetistheGAAratherthantheBESFwhichispartoftheEBP.

IBPCommentTheresearcheriscorrect-theupdatedversionsoftheBESFbasedontheapprovedbudgetdonotcontainupdatedfiguresforeithernetnewborrowingortotaldebtoutstanding.However,theCBoftheEBdoesshowadeficitfigure:seep.5https://www.dbm.gov.ph/index.php/budget-documents/2018/2018-people-s-budget/2018-people-s-budgetAstheCBoftheEBisconsideredasupportingdocumenttotheEB,thescoreisrevisedfromCtoB.

64.WhatinformationisprovidedintheCitizensBudget?

(Thecoreinformationmustincludeexpenditureandrevenuetotals,themainpolicyinitiativesinthebudget,themacroeconomicforecastuponwhichthebudgetisbased,andcontactinformationforfollow-upbycitizens.)

GUIDELINES:

Question64focusesonthecontentoftheCitizensBudget,askingwhether“core”informationispresented.Thesecorecomponentsinclude:

expenditureandrevenuetotals;themainpolicyinitiativesinthebudget;themacroeconomicforecastuponwhichthebudgetisbased;andcontactinformationforfollow-upbycitizens.

Toanswer“a,”theCitizensBudgetorsupportingdocumentationmustpresentalloftheabovecoreinformationaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”theCitizensBudgetmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesiftheCitizensBudgetincludessomeofthecorecomponentsabove,butothercorepiecesofinformationarenotincluded.Answer“d”appliesifaCitizensBudgetisnotpublished.

Answer:a.TheCitizensBudgetprovidesinformationbeyondthecoreelements.

Source:2019People’sProposedBudget:https://www.dbm.gov.ph/index.php/budget-documents/2019/2019-people-s-budget/2019-budget-at-a-glance-proposed-2

Comment:The2019People’sProposedBudgetpresentsthecoreinformation,includingexpenditureandrevenuetotals,mainpolicyinitiativesinthebudget,macroeconomicforecastuponwhichthebudgetisbased,andcontactinformationforfollow-upbycitizens.Beyondthecoreelements,informationisalsogivenonborrowingsanddebt,budgetcycle,andglossaryofterms.



65.HowistheCitizensBudgetdisseminatedtothepublic?

GUIDELINES:Question65askshowtheCitizensBudgetisdisseminatedtothepublic.CitizensBudgetsshouldbemadeavailabletoavarietyofaudiences.ThereforepaperversionsandanInternetpostingofadocumentmightnotbesufficient.

Toanswer“a,”theexecutivemustusethreeormoredifferenttypesofcreativemediatoolstoreachthelargestpossibleshareofthepopulation,includingthosewhootherwisewouldnotnormallyhaveaccesstobudgetdocumentsorinformation.Disseminationwouldalsobepursuedattheverylocallevel,sothatthecoverageistargetedbothbygeographicareaandpopulationgroup(e.g.,women,elderly,lowincome,urban,rural,etc.).Option“b”appliesifsignificantdisseminationeffortsaremadethroughacombinationoftwomeansofcommunications,forinstance,bothpostingtheCitizensBudgetontheexecutive’sofficialwebsiteanddistributingprintedcopiesofit.Option“c”appliesiftheCitizensBudgetisdisseminatedthroughonlypostingontheexecutive’sofficialwebsite.Option“d”applieswhentheexecutivedoesnotpublishaCitizensBudget.

Answer:a.ACitizensBudgetisdisseminatedwidelythroughacombinationofatleastthreedifferentappropriatetoolsandmedia(suchastheInternet,billboards,radioprograms,newspapers,etc.).


Comment:Thedisseminationeffortsonthe2019People’sProposedBudgetfocusedonvariousmeansofcommunication,specificallypostingontheInternetandthedistributionofprintedcopiestostakeholders.TheDepartmentofBudgetandManagement(DBM)alsoencouragesitsreproduction,copying,printing,and/ordisseminationorpartsthereofexclusivelyforpersonalandnon-commercialuseandwithproperacknowledgmentoftheDBMoritsothersources.Unlikethepast,therewasnoaudio-visualpresentationfor2018People'sbudget.



IBPCommentDuringanIBPreview,theresponseforthisquestionisrevisedfromBtoArecognizingthatsocialmediaisconsideredaseparateformofdissemination,inadditiontoprintedcopiesandpostingofthecitizensbudgetonthewebsite.

66.Hastheexecutiveestablishedmechanismstoidentifythepublic’srequirementsforbudgetinformationpriortopublishingtheCitizensBudget?

GUIDELINES:Question66askswhethertheexecutivehasestablishedmechanismstoidentifythepublic’srequirementsforbudgetinformationbeforepublishingaCitizensBudget.WhatthepublicwantstoknowaboutthebudgetmightdifferfromtheinformationtheexecutiveincludesintechnicaldocumentsthatcomprisetheExecutive’sBudgetProposalortheEnactedBudget;similarly,differentperspectivesmightexistonhowthebudgetshouldbepresented,andthismayvarydependingonthecontext.ForthisreasontheexecutiveshouldconsultwiththepubliconthecontentandpresentationoftheCitizensBudget.

Toanswer“a,”theexecutivemusthaveestablishedmechanismstoconsultwiththepublic,andthesemechanismsforconsultationarebothaccessibleandwidelyusedbythepublic.Suchmechanismscanincludefocusgroups,socialnetworks,surveys,hotlines,andmeetings/eventsinuniversitiesorotherlocationswherepeoplegathertodiscusspublicissues.IncountrieswhereCitizensBudgetsareconsistentlyproducedandreleased,itmaybesufficientforthegovernmenttoprovidethepublicwithcontactinformationandfeedbackopportunities,andsubsequentlyusethefeedbacktoimproveitsmanagementofpublicresources.

Option“b”appliesiftheexecutivehasestablishedmechanismsforconsultationthatareaccessibletothepublic,butthatthepublicnonethelessdoesnotusefrequently.Thatis,thepublicdoesnottypicallyengagewiththeexecutiveonthecontentoftheCitizensBudget,eventhoughtheexecutivehascreatedopportunitiesforsuchconsultation.Option“c”appliesiftheexecutivehasestablishedmechanismforconsultationwiththepublic,buttheyarepoorlydesignedandthusnotaccessibletothepublic.Option“d”appliesiftheexecutivehasnotcreatedanymechanismstoseekfeedbackfromthepubliconthecontentoftheCitizensBudget.

Answer:a.Yes,theexecutivehasestablishedmechanismstoidentifythepublic’srequirementsforbudgetinformationintheCitizen’sBudget,andthesemechanismsareaccessibleandwidelyusedbythepublic.

Source:2018People’sProposedBudget:https://www.dbm.gov.ph/index.php/budget-documents/2018/2018-people-s-budget/2018-people-s-proposed-budget

Comment:ASurveyFeedbackFormisincludedintheCitizensBudgetthatispostedinthewebsiteoftheDepartmentofBudgetandManagement(DBM).ThefeedbackformsaresubmittedtotheBudgetInformationandTrainingServiceoftheDBMorsentbyemailtobits@dbm.gov.ph.Thefeedbackfromthepreviousyear’sCitizensBudgetwasusedtoidentifythepublic’srequirementsforbudgetinformationforthe2019People’sProposedBudget.



67.Are“citizens”versionsofbudgetdocumentspublishedthroughoutthebudgetprocess?

GUIDELINES:Question67asksif“citizens”versionsofbudgetdocumentsarepublishedthroughoutthebudgetprocess.WhiletheCitizensBudgetwasinitiallyconceivedasasimplifiedversionoftheExecutive’sBudgetProposalortheEnactedBudget,goodpracticeisnowevolvingandsuggeststhata“citizens”versionofkeybudgetdocumentsshouldbeproducedduringeachofthefourphasesofthebudgetcycle.Thiswouldservetoinformcitizensofthestateofpublicfinancialmanagementthroughouttheentirebudgetcycle.

Toanswer“a,”acitizensversionofatleastonebudgetdocumentispublishedforeachofthefourstagesofthebudgetprocess(budgetformulation,enactment,execution,andaudit)—foratotalofatleastfourcitizensbudgetdocumentsthroughouttheprocess.Option“b”appliesifacitizensversionofabudgetdocumentispublishedforatleasttwoofthefourstagesofthebudgetprocess.Option“c”appliesifacitizensversionofabudgetdocumentispublishedforatleastoneofthefourstagesofthebudgetprocess.Selectoption“d”ifno“citizens”versionofbudgetdocumentsispublished.

Answer:b.Acitizensversionofbudgetdocumentsispublishedforatleasttwoofthefourstagesofthebudgetprocess.


2018People’sBudget:https://www.dbm.gov.ph/index.php/budget-documents/2018/2018-people-s-budget/2018-people-s-budget

Comment:TheCitizensBudgetispublishedfortwoofthefourstagesofthebudgetprocess.The2019People’sProposedBudgetispublishedforthebudgetpreparationphasewhilethe2018People’sBudgetispublishedforthebudgetenactmentphase.



ResearcherResponseTheanswerisstill"b"witharecognitionthatacitizensversionisalsoprovidedforbudgetaudit.

IBPCommentIBPconfirmsthescoreofB,however,notesthattheWASHauditdoesnotcountasaCBoftheAuditofthewhole-of-governmentfinancialstatements.However,therearecitizensbudgetsfortheformulationstage(PBSandEBP)andenactmentstage(EB),meaningthatthescoreisB.

68.DotheIn-YearReportspresentactualexpendituresbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question68asksifexpenditureestimatesinIn-YearReportsarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.

Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”In-YearReportsmustpresentactualexpendituresbyallthreeoftheexpenditureclassifications.Toanswer“b,”actualexpendituresmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifactualexpendituresarepresentedbyoneofthethreeclassifications.Answer“d”appliesifactualexpendituresarenotpresentedbyanyofthethreeclassificationsinIn-YearReports.

Answer:b.Yes,theIn-YearReportspresentactualexpendituresbytwoofthethreeexpenditureclassifications.

Source:ReportonUtilizationofNoticesofCashAllocationforNationalGovernmentAgenciesandBudgetarySupportforNationalGovernmentAgenciesandBudgetarySupporttoGOCCsandLGUs,asofAugust2018:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization#2018

NGDisbursementReportAugust2018,p.2foreconomicclassificationhttps://www.dbm.gov.ph/images/August-2018-Assessment_for-posting.pdf

Comment:TheIn-YearReports(IYRs)presentactualexpendituresbytwoofthethreeexpenditureclassifications.TheDepartmentofBudgetandManagement(DBM)publishesseveralIYRs,includingthemonthlyReportonUtilizationofNoticesofCashAllocationforNationalGovernmentAgenciesandBudgetarySupporttoGOCCsandLGUswhichpresentsactualexpendituresbyadministrationclassification.Ontheotherhand,themonthlyNationalGovernmentDisbursementsPerformanceshowsactualexpendituresbyeconomicclassification.TheDBMalsopublishesquarterlyStatementsofAllotments,ObligationsandBalanceswhichpresentexpendituresbybothadministrativeandeconomicclassification.



68b.BasedontheresponsetoQuestion68,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheIn-YearReports:

Answer:AdministrativeclassificationEconomicclassification

Source:ReportonUtilizationofNoticesofCashAllocationforNationalGovernmentAgenciesandBudgetarySupportforNationalGovernmentAgenciesandBudgetarySupporttoGOCCsandLGUs,asofAugust2018:https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization#2018

NGDisbursementReportAugust2018,p.2foreconomicclassificationhttps://www.dbm.gov.ph/images/August-2018-Assessment_for-posting.pdf

Comment:TheIn-YearReports(IYRs)presentactualexpendituresbytwoofthethreeexpenditureclassifications.TheDepartmentofBudgetandManagement(DBM)publishesseveralIYRs,includingthemonthlyReportonUtilizationofNoticesofCashAllocationforNationalGovernmentAgenciesandBudgetarySupporttoGOCCsandLGUswhichpresentsactualexpendituresbyadministrationclassification.Ontheotherhand,themonthlyNationalGovernmentDisbursementsPerformanceshowsactualexpendituresbyeconomicclassification.TheDBMalsopublishesquarterlyStatementsofAllotments,ObligationsandBalanceswhichpresentexpendituresbybothadministrativeandeconomicclassification.



69.DotheIn-YearReportspresentactualexpendituresforindividualprograms?

GUIDELINES:Question69asksifexpenditureestimatesinIn-YearReportsarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”In-YearReportsmustpresentactualexpendituresforallindividualprograms,accountingforallexpenditures.Toanswer“b,”In-YearReportsmustpresentactualexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesifIn-YearReportspresentactualexpendituresforprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifactualexpendituresarenotpresentedbyprograminIn-YearReports.

Answer:a.Yes,theIn-YearReportspresentactualexpendituresforprogramsaccountingforallexpenditures.

Source:NationalGovernmentDisbursementsPerformance,asofAugust2018:https://www.dbm.gov.ph/images/August-2018-Assessment_for-posting.pdf

Comment:TheNationalGovernmentDisbursementsPerformance,asofAugust2018,presentsactualexpendituresforindividualprograms.https://www.dbm.gov.ph/index.php/programs-projects/status-of-nca-utilization/222-dbm-releases/2018-status-of-nca-utilization/1207-2018-status-of-nca-utilization-as-of-august-2018



70.DotheIn-YearReportscompareactualyear-to-dateexpenditureswitheithertheoriginalestimateforthatperiod(basedontheenactedbudget)orthesameperiodinthepreviousyear?

GUIDELINES:Question70askswhetherIn-YearReportscompareactualexpendituresto-datewitheithertheenactedlevelsoractualexpendituresforthesameperiodinthepreviousyear.

TheOECDrecommendsthatthereportscontainthetotalyear-to-dateexpendituresinaformatthatallowsforacomparisonwiththebudget’sforecastexpenditures(basedonenactedlevels)forthesameperiod.

Toanswer“a,”comparisonsmustbemadeforexpenditurespresentedintheIn-YearReports

Answer:a.Yes,comparisonsaremadeforexpenditurespresentedintheIn-YearReports.

Source:NationalGovernmentDisbursementsPerformance,asofAugust2018:https://www.dbm.gov.ph/images/August-2018-Assessment_for-posting.pdf

Comment:ComparisonsaremadeforexpenditurespresentedintheIn-YearReports.Forinstance,theNationalGovernmentsDisbursementsPerformanceforthemonthofAugust2018providesacomparisonofyear-to-dateexpenditureswiththatofthesameperiodfromthepreviousyear.



71.DoIn-YearReportspresentactualrevenuebycategory(suchastaxandnon-tax)?

GUIDELINES:Questions71askswhetherIn-YearReportspresentactualrevenuesby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”In-YearReportsmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,In-YearReportspresentactualrevenuebycategory.

Source:NationalGovernmentCashOperationReport,CY2018:http://www.treasury.gov.ph/wp-content/uploads/2018/04/COR-Summary_open.pdf

NationalGovernmentCashOperationReport,CY2017:http://www.treasury.gov.ph/wp-content/uploads/2018/01/COR-Summary_open.pdf

Comment:TheNationalGovernmentCashOperationReport,CY2018andCY2017andtheNationalGovernmentRevenuesCY2018andCY2017presentdataontaxandnon-taxrevenues.



72.DoIn-YearReportspresenttheindividualsourcesofrevenueforactualrevenuescollected?

GUIDELINES:Question72askswhetherIn-YearReportspresentactualcollectionsofindividualsourcesofrevenue(suchasincometaxes,VAT,etc.).Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”In-YearReportsmustpresentactualcollectionsforallindividualsourcesofrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”In-YearReportsmustpresentactualcollectionsforindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenuecollected,butnotallrevenue.A“c”answerappliesifIn-YearReportspresentindividualsourcesofactualrevenuethataccountforlessthantwo-thirdsofallrevenuecollected.Answer“d”appliesifindividualsourcesofactualrevenuearenotpresented.

Answer:c.Yes,In-YearReportspresentindividualsourcesofactualrevenueaccountingforlessthantwo-thirdsofallrevenue.


Comment:TheNationalGovernmentCashOperationReport,CY2018andCY2017showindividualsourcesofactualrevenue.However,asubstantialamountofrevenues(morethan2/3)ispresentedbycategoryordepartment,notindividualsource,thereforetheresponseisC.



73.DotheIn-YearReportscompareactualyear-to-daterevenueswitheithertheoriginalestimateforthatperiod(basedontheenactedbudget)orthesameperiodinthepreviousyear?

GUIDELINES:Question73askswhetherIn-YearReportscompareactualrevenuesto-datewitheithertheenactedlevelsoractualrevenuesforthesameperiodinthepreviousyear.

TheOECDrecommendsthatthereportscontainthetotalyear-to-daterevenuesinaformatthatallowsforacomparisonwiththebudget’sforecastrevenues(basedonenactedlevels)forthesameperiod.

Toanswer“a,”comparisonsmustbemadeforrevenuespresentedintheIn-YearReports.

Answer:a.Yes,comparisonsaremadeforrevenuespresentedintheIn-YearReports.



Comment:TheNationalGovernmentCashOperationReport,CY2018andCY2017presentyear-to-daterevenueestimatesaswellasdataforthesameperiodfromthepreviousyear.



74.DoIn-YearReportspresentthreeestimatesrelatedtoactualgovernmentborrowinganddebt:theamountofnetnewborrowing;thetotaldebtoutstanding;andinterestpayments?

GUIDELINES:Question74asksaboutthreekeyestimatesrelatedtoborrowinganddebt:

·theamountofnetnewborrowingsofarduringtheyear;

·thecentralgovernment’stotaldebtburdenatthatpointintheyear;and

·theinterestpaymentsto-dateontheoutstandingdebt.

Debtistheaccumulatedamountofmoneythatthegovernmentborrows.Thegovernmentcanborrowfromitscitizensandbanksandbusinesseswithinthecountry(domesticdebt)orfromcreditorsoutsidethecountry(externaldebt).Externaldebtistypicallyowedtoprivatecommercialbanks,othergovernments,orinternationalfinancialinstitutionssuchastheWorldBankandtheInternationalMonetaryFund.



Toanswer“a,”In-YearReportsmustpresentallthreeestimatesofborrowinganddebt.Fora“b”answer,In-YearReportsmustpresenttwoofthosethreeestimates.Fora“c”answer,IYRsmustpresentoneofthethreeestimates.Answer“d”appliesifnoinformationonborrowinganddebtispresentedinIn-YearReports.

Answer:a.Yes,allthreeestimatesrelatedtogovernmentborrowinganddebtarepresented.



http://www.treasury.gov.ph/wp-content/uploads/2018/04/OS-Debt.pdf

Comment:TheNationalGovernmentCashOperationReport,CY2018andCY2017presentthecoreinformationonthenewnetborrowingduringtheyear,totaldebtburden,andinterestpaymentsontheoutstandingdebt.

PeerReviewer

Opinion:Agree


ResearcherResponseThecitationprovidedbythePeerReviewerisdulynoted.

75.DoIn-YearReportspresentinformationrelatedtothecompositionofthetotalactualdebtoutstanding?

(Thecoreinformationmustincludeinterestratesonthedebtinstruments;maturityprofileofthedebt;andwhetheritisdomesticorexternaldebt.)

GUIDELINES:Question75focusesonthecompositionofgovernmentdebt,askingwhether“core”informationrelatedtoitscompositionispresented.Thesecorecomponentsinclude:


Theinterestratesaffecttheamountofinterestthatmustbepaidtocreditors.Thematurityprofileindicatesthefinalpaymentdateoftheloan,atwhichpointtheprincipal(andallremaininginterest)isduetobepaid;governmentborrowingtypicallyincludesamixofshort-termandlong-termdebt.AsdiscussedinQuestion74,domesticdebtisheldbyacountry’scitizensandbanksandbusinesses,whileexternaldebtisheldbyforeigners.Thesefactorsrelatedtothecompositionofthedebtgiveanindicationofthepotentialvulnerabilityofthecountry’sdebtposition,andultimatelywhetherthecostofservicingtheaccumulateddebtisaffordable.

Beyondthesecoreelements,agovernmentmayalsoprovideadditionalinformationrelatedtothecompositionofitsdebt,includingforinstance:whetherinterestratesarefixedorvariable;whetherdebtiscallable;thecurrencyofthedebt;aprofileofthecreditors(bilateralinstitutions,multilateralinstitutions,commercialbanks,CentralBank,etc.);ananalysisoftheriskassociatedwiththedebt;andwhereappropriate,whatthedebtisbeingusedtofinance.

Toanswer“a,”In-YearReportsmustpresentallofthecoreinformationrelatedtothecompositionofgovernmentdebtto-dateaswellassomeadditionalinformationbeyondthecoreelements.Toanswer“b,”In-YearReportsmustpresentallofthecorecomponentsnotedabove.Answer“b”isalsoacceptedifoneofthecoreelementsisnotpresentedbutadditionalinformationbeyondthecoreelementsispresented.A“c”answerappliesifsomeinformationrelatedtothecompositionofgovernmentdebtispresented,butsomeofthecorepiecesofinformationarenotincluded.Answer“d”appliesifnoinformationispresentedonthecompositionofthedebtoutstandinginIn-YearReports.

Answer:b.Yes,thecoreinformationispresentedforthecompositionofthetotalactualdebtoutstanding.

Source:DebtIndicators,asofJune2018:http://www.treasury.gov.ph/wp-content/uploads/2018/07/debtindic_june.pdf

NationalGovernmentOutstandingDebt,asofJune2018:http://www.treasury.gov.ph/wp-content/uploads/2018/07/OS-NG_DEBT_June2018.pdf

http://www.treasury.gov.ph/wp-content/uploads/2018/04/Outstanding-Treasury-Bonds-as-of-March-31-2018.pdf

Comment:TheIn-YearReportsoftheBureauoftheTreasuryonDebtIndicators,asofJune2018,andtheNationalGovernmentOutstandingDebt,asofDecember2018,presentsuchcoreinformationasmaturityprofileofthedebt,andwhetherthedebtisdomesticorexternal.Beyondthecoreelements,additionalinformationisgivenonthecurrencyofthedebtandprofileofcreditors.

Missingistheinterestratesondebtinstruments.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,informationbeyondthecoreelementsispresentedforthecompositionofthetotalactualdebtoutstanding.Comments:Table17,Page25oftheNationalGovernmentDebtStatisticalBulletingpublishedinMarch2018presentsDomesticGovernmentSecuritiesbyTypeofInterestRate.Weblink:http://www.treasury.gov.ph/wp-content/uploads/2018/03/Debt-Statistical-Bulletin-December-2017.pdf

ResearcherResponseTherevisedansweris"a".Table17,Page25oftheNationalGovernmentDebtStatisticalBulletinpublishedinMarch2018presentsDomesticGovernmentSecuritiesbyTypeofInterestRate.

IBPCommentThankyoutothegovernmentreviewerfornotingtheNationalGovernmentDebtStatisticalBulletin.However,asthisdocumentisonlypublishedonceperyear,itisnotconsideredanin-yearreport,whichneedstobepublishedatleastquarterly.Theresearcher'soriginalresponseofBismaintained.

76.DoestheMid-YearReviewofthebudgetincludeanupdatedmacroeconomicforecastforthebudgetyearunderway?

GUIDELINES:

Question76askswhethertheMid-YearReviewincludesanupdatedmacroeconomicforecastforthebudgetyear,andprovidesanexplanationoftheupdate.

RefertoQuestion15forthecomponentsofthemacroeconomicforecastpresentedintheExecutive’sBudgetProposal.

Toanswer“a,”theMid-YearReviewmustincludeanupdatedmacroeconomicforecastandexplainallofthedifferencesbetweentheinitialforecastpresentedintheExecutive’sBudgetProposalandtheupdatedforecast.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”themacroeconomicforecastmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedforecastsareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesanupdatedmacroeconomicforecast,butdoesnotprovideanexplanationfortherevisions.A“d”responseappliesifthemacroeconomicforecasthasnotbeenupdated.

Answer:b.Yes,theestimatesformacroeconomicforecasthavebeenupdated,andanexplanationofsomeofthedifferencesbetweentheoriginalandupdatedforecastsispresented.

Source:Mid-YearReportonthe2018NationalBudget,September28,2018:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report-updated

Comment:TheMid-YearreviewpubishedinSeptember2018ismostlyaprogressreportwithnorevisedprojectionsfortheremainderoftheyear.ThereisconfirmationoftheGDPgrowthrateonp.29,adiscussionsofinterestrates(butnoprojection)onp.30,andinterestratesonp.31.Thereissomeinformationbeyondthecore(exportgrowthandexchangerate).The'updated'Mid-YearReportonthe2018NationalBudgetprovidesinformationbeyondthecore,withdataonGDPgrowthrateonp.29.However,thisreportwaspublishedlate.

PeerReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theestimatesformacroeconomicforecasthavebeenupdated,andanexplanationofsomeofthedifferencesbetweentheoriginalandupdatedforecastsispresented.Comments:Table3oftheoriginalMid-YearReporthassomeselectedmacro-economicassumptionsthatwererevisedinmid-year,alongwiththeactualfirst-halfresults.ThesedifferencesarethenexplainedinSectionIV(pp.29-32).

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theestimatesforthemacroeconomicforecasthavebeenupdated,andanexplanationofallofthedifferencesbetweentheoriginalandupdatedforecastsispresented.Comments:Inadditiontothecommentsoftheresearcher,Table3,page11oftheFY2018Mid-YearReportpresentsacomparisonoftheforecastsintheFY2018BESF(publishedJuly2017)andtheupdatedforecastsapprovedbytheDevelopmentBudgetCoordinationCommitteeonJuly2,2018andpresentedintheFY2019BESF(publishedJuly2018).Theupdatedforecaststakeintoaccounttherecentmacroeconomicdevelopmentsdiscussedinpages6to11.TheMacroeconomicOutlookportionofSectionIV(pages29-34)providesadditionalexplanationofthechangesinmacroeconomicforecastsaswellasadiscussionofmeasuresthatwilladdresshighinflation.

ResearcherResponseIrevisemyanswerfrom"c"to"b".IagreewiththePeerReviewer,aswellastheGovernmentReviewer,thatTable3oftheoriginalMid-YearReporthassomeselectedmacro-economicassumptionsthatwererevisedinmid-year,alongwiththeactualfirst-halfresults.ThesedifferencesarethenexplainedinSectionIV(pp.29-32).

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportAstheforecastforGDPgrowth(butnotnominalGDP)isdiscussedandmaintainedonp.29,andTable3includesbothaprojectionofinterestrates,inflationrates,andindicatorsthatarebeyond-the-core,theresearcher'sresponsetoupgradethescorefromCtoBisconfirmed.

77.DoestheMid-YearReviewofthebudgetincludeupdatedexpenditureestimatesforthebudgetyearunderway?

GUIDELINES:Question77askswhethertheMid-YearReviewincludesupdatedestimatesofexpenditureforthebudgetyear,andprovidesanexplanationoftheupdate.

Toanswer“a,”theMid-YearReviewmustincludeupdatedexpenditureestimatesandexplainallofthedifferencesbetweentheinitiallevelspresentedintheExecutive’sBudgetProposal(ortheEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Theexpenditureestimatesmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedexpenditureestimates,butdoesnotprovideanexplanationfortherevisions.A“d”responseappliesiftheexpenditureestimateshavenotbeenupdated.

Answer:a.Yes,expenditureestimateshavebeenupdated,andanexplanationofallofthedifferencesbetweentheoriginalandupdatedexpenditureestimatesispresented.

Source:Mid-YearReportonthe2018NationalBudget,September28,2018,pages24-28:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report-updated

Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsfordisbursementestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.P.34-35hassomediscussionofchangedtargets,butthetargetsarenotreported.The'updated'MYRonthe2018NationalBudgetpresentsonpages24-28anestimateaswellasdiscussionoforiginalvis-à-visupdatedexpendituressixmonthsintothebudgetyear,however,thesewerepublishedoutsidethetimeframeacceptableunderOBSmethodology.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,expenditureestimateshavebeenupdated,andanexplanationofallofthedifferencesbetweentheoriginalandupdatedexpenditureestimatesispresented.Comments:Table4,page12oftheFY2018Mid-YearReportpresentsacomparisonoftheprojectionsintheFY2018BESF(publishedJuly2017)andtheupdatedestimates(labeledasprogram)intheFY2019BESF(publishedJuly2018).ItshallbenotedthattheupdatedestimateswereapprovedbytheDevelopmentBudgetCoordinationCommitteeonJuly2,2018andtakesintoaccountrecentdevelopments.Inaddition,pages11to13providesanexplanationofthechangesbetweentheoriginalprojectionsintheFY2018BESFandtheupdatedestimatesintheFY2019BESF.

ResearcherResponseIagreetochangetheanswerfrom"d"to"csincepage12ofthe2018Mid-YearReportpresentsinTable4acomparisonoftheprojectionsinthe2018BESFandupdatedestimatedinthe2019BESF.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportThegovernmentreviewer'sandresearcher'sreferencetoTable4isconfirmed-itshowstheoriginalandupdatedestimatesfortheyearoftotalexpendituresbycurrentandcapitalbreakdown.Asthereissomediscussionofthedifferencesinprojectedexpendituresonpages12-13ascoreofAisappropriate.

78.DoestheMid-YearReviewofthebudgetpresentexpenditureestimatesbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question78asksifexpenditureestimatesintheMid-YearReviewarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theMid-YearReviewmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Toanswer“b,”expenditureestimatesmustbepresentedbytwoofthesethreeclassifications.A“c”answerappliesifexpenditureestimatesarepresentedbyoneofthethreeclassifications.

Answer“d”appliesifexpenditureestimatesarenotpresentedbyanyofthethreeclassificationsintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentexpenditureestimatesbyanyexpenditureclassification.


Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsfordisbursementestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.P.34-35hassomediscussionofchangedtargets,butthetargetsarenotreported.The'updated'MYRonthe2018NationalBudgetpresentsupdatedexpenditureestimatesbyadministrativeclassificationonpage24andbyeconomicclassificationonpage27.However,thisreportwaspublishedlate.

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,theMid-YearReviewpresentsexpenditureestimatesbyonlyoneofthethreeexpenditureclassifications.Comments:Thecommentisconfusingsincetheoriginaland"updated"Mid-YearReportsprovidethesameinformationaboutexpenditureclassifications.Table14inbothdocumentspresentdatawithregardtoeconomicclassification.WhatisthereistheprogrammedversusactualexpendituresforthefirsthalfoftheFiscalYear;Ipresumethatcountsas"expenditureestimates."NotethatitdoesnotprovideanyrevisedtotalsfortheFiscalYear--totalsareapparentlyregardedasfixedbytheEnactedBudget.IdonotregardTable13assufficientlydetailedtocountasadministrativeclassification--forinstance,allNationalGovernmentAgenciesarealllumpedtogether.Thus,(c);onlyone.

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,theMid-YearReviewpresentsexpenditureestimatesbyonlyoneofthethreeexpenditureclassifications.Comments:Table4,page12oftheFY2018Mid-YearReportpresentstheupdatedestimatesbybroadeconomicclassificationsimilartoTableA.2oftheFY2019BESF.

ResearcherResponseIrevisetheanswerfrom"d"to"c".Table4,page12oftheFY2018Mid-YearReportpresentstheupdatedestimatesbybroadeconomicclassification.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportTothepeerreviewer'spoint-thisquestionlooksonlyatexpendituretablesthathaverevisedprojectionsfortheremainderofthefiscalyear.ThereforeTable13and14donotqualifyastheyonlycoverthefirstsemester.Tothegovernmentreviewer'spoint-AsTable4onlyprovidesacurrent/capitalbreakdownofexpenditures,thisisnotsufficientdetailtoqualifyasaneconomicclassificationbyOBSstandards.Theresearcher'soriginalscoreofDisconfirmed.

78b.BasedontheresponsetoQuestion78,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheMid-YearReview:

Answer:Noneoftheabove


Comment:Onlythe'updated'Mid-YearReportonthe2018NationalBudgetpresentsupdatedexpenditureestimatesbyadministrativeclassificationonpage24andbyeconomicclassificationonpage27.

PeerReviewerOpinion:DisagreeSuggestedAnswer:EconomicClassificationasperTable14intheoriginalMid-YearReportbeingdiscussed:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:EconomicclassificationComments:Table4,page12oftheFY2018Mid-YearReportpresentstheupdatedestimatesbybroadeconomicclassificationsimilartoTableA.2oftheFY2019BESF.

ResearcherResponseTherevisedansweriseconomicclassification.Table4ofthe2018Mid-YearReportpresentsexpendituresbyeconomicclassification.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportAsnotedinQ78,thecapital/currentbreakdowndoesnotqualifyasaneconomicclassification,thereforethescoreofDismaintained.

79.DoestheMid-YearReviewofthebudgetpresentexpenditureestimatesforindividualprograms?

GUIDELINES:Question79asksifexpenditureestimatesintheMid-YearReviewarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theMid-YearReviewmustpresentexpendituresforallindividualprograms,accountingforallexpenditures.Toanswer“b,”theMid-YearReviewmustpresentexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.A“c”answerappliesiftheMid-YearReviewpresentsprogramsthataccountforlessthantwo-thirdsofexpenditures.Answer“d”appliesifexpendituresarenotpresentedbyprogramintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentexpenditureestimatesbyprogram.


Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsfordisbursementestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.P.34-35hassomediscussionofchangedtargets,butthetargetsarenotreported.The'updated'Mid-YearReportonthe2018NationalBudgetpresentsonpages27-28expenditureestimatesforselectedindividualprograms.However,thisreportwaspublishedlate.



IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report

80.DoestheMid-YearReviewofthebudgetincludeupdatedrevenueestimatesforthebudgetyearunderway?

GUIDELINES:Question80askswhethertheMid-YearReviewincludesupdatedestimatesofrevenueforthebudgetyear,andprovidesanexplanationoftheupdate.

Toanswer“a,”theMid-YearReviewmustincludeupdatedrevenueestimatesandexplainallofthedifferencesbetweentheinitiallevelspresentedintheExecutive’sBudgetProposal(ortheEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”therevenueestimatesmustbeupdated,butonlysome

ofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedrevenueestimates,butnoexplanationfortherevisionsisprovided.A“d”responseappliesiftherevenueestimateshavenotbeenupdated.

Answer:a.Yes,revenueestimateshavebeenupdated,andanexplanationofallofthedifferencesbetweentheoriginalandupdatedrevenueestimatesispresented.


Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsofrevenueestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.The'updated'Mid-YearReportonthe2018NationalBudgetpresentsonpages12-13adiscussionoftheupdatedrevenueestimatesforthebudgetyear.However,thisreportwaspublishedlate.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,revenueestimateshavebeenupdated,andanexplanationofallofthedifferencesbetweentheoriginalandupdatedrevenueestimatesispresented.Comments:Table4,page12oftheFY2018Mid-YearReportpresentsacomparisonoftherevenueprojectionspublishedintheFY2018BESF(July2017)andtheupdatedestimates(labeledasprogram)publishedintheFY2019BESF(July2018).ItshallbenotedthattheupdatedestimateswereapprovedbytheDevelopmentBudgetCoordinationCommitteeonJuly2,2018andtakesintoaccountrecentfiscaldevelopments.Inaddition,pages11to13providesanexplanationofthechangesbetweentheoriginalprojectionsintheFY2018BESFandtheupdatedestimatesintheFY2019BESF.

ResearcherResponseOnlythefirstversionoftheMid-YearReportisassessed.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportBasedonTable4citedbythegovernmentreviewer,thisscoreisrevisedfromDtoA,asthetablepresentsthecomparisonoforiginalandrevisedrevenueestimatesbasedonthe2019BESFfortaxandnon-taxrevenues,withsomediscussionofthevariationsonp.12.

81.DoestheMid-YearReviewofthebudgetpresentrevenueestimatesbycategory(suchastaxandnon-tax)?

GUIDELINES:Question81askswhetherrevenueestimatesintheMid-YearReviewarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theMid-YearReviewmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,theMid-YearReviewpresentsrevenueestimatesbycategory.

Source:Mid-YearReportonthe2018NationalBudget,September28,2018,page12:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report-updated

Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsofrevenueestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.The'updated'Mid-YearReportonthe2018NationalBudgetpresentsonpage12estimatesthatareclassifiedastaxandnon-taxrevenues.However,thisreportwaspublishedlate.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theMid-YearReviewpresentsrevenueestimatesbycategory.Comments:Table4,page12oftheFY2018Mid-YearReportpresentstheupdatedrevenueestimatesbycategory(taxandnon-tax).

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportBasedonTable4onp.12,revenuesareshownastaxandnon-taxcategories,withupdatedprojectionsfortheremainderofthefiscalyear.ThereforethisscoreisrevisedtoA.

82.DoestheMid-YearReviewofthebudgetpresentindividualsourcesofrevenue?

GUIDELINES:Question82askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheMid-YearReview.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theMid-YearReviewmustpresentallsourcesofrevenueindividually,accountingforallrevenues,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Toanswer“b,”theMid-YearReviewmustpresentindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.A“c”answerappliesiftheMid-YearReviewpresentsestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”appliesifindividualsourcesofrevenuearenotpresentedintheMid-YearReview.

Answer:d.No,theMid-YearReviewdoesnotpresentindividualsourcesofrevenue.

Source:Mid-YearReportonthe2018NationalBudget,September28,2018,pages13to19:hhttps://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report

Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsofrevenueestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.The'updated'Mid-YearReportonthe2019NationalBudgetpresentsonpages13-19individualsourcesofrevenuepercollectingagency.Howeverthisreportwaspublishedlate.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theMid-YearReviewpresentsindividualsourcesofrevenueaccountingforatleasttwo-thirdsof,butnotall,revenue.Comments:Table9,page18andTable10,page19oftheFY2018Mid-YearReportpresentsrevenuesbyindividualcategoryundertheBureauofInternalRevenueandBureauofCustoms,respectively.

ResearcherResponseTherevisedansweris"b".Table9,page18andTable10,page19oftheFY2018Mid-YearReportpresentsrevenuesbyindividualcategoryundertheBureauofInternalRevenueandBureauofCustoms,respectively.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportTable9andTable10oftheMYR,however,onlyshowactualvaluesatthemid-pointoftheyear(labeledas:ActualFirstSemester),notupdatedprojectionsfortheremainderoftheyear.Theresearcher'soriginalresponseofDisconfirmed.

83.DoestheMid-YearReviewofthebudgetincludeupdatedestimatesofgovernmentborrowinganddebt,includingitscomposition,forthebudgetyearunderway?

GUIDELINES:

Question83askswhethertheMid-YearReviewincludesupdatedestimatesofborrowinganddebt,includingitscomposition,forthebudgetyear,andprovidesanexplanationoftheupdate.

RefertoQuestion13fordetailsonestimatesintheExecutive’sBudgetProposalofborrowinganddebt.Keyestimatesrelatedtoborrowinganddebtinclude:

Theamountofnetnewborrowingrequiredduringthebudgetyear;Thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;andTheinterestpaymentsontheoutstandingdebtforthebudgetyear.

RefertoQuestion14fordetailsonestimatesintheExecutive’sBudgetProposalrelatedtothecompositionofthedebt.Coreinformationrelatedtothecompositionofgovernmentdebtinclude:


Toanswer“a,”theMid-YearReviewmustincludeanupdatedestimatesofborrowinganddebt,includingitscomposition,andexplainallofthedifferencesbetweentheinitialestimatespresentedintheExecutive’sBudgetProposal(orEnactedBudget)andtheupdatedestimates.Theexplanationmustincludeatleastestimatesofalldifferences;anarrativediscussionisdesirablebutnotrequiredifestimatesofallthedifferencesareprovided.Toanswer“b,”theestimatesofborrowinganddebtmustbeupdated,butonlysomeofthedifferencesbetweentheinitialandupdatedestimatesareexplained.Theexplanationwouldbemorelimited,suchasonlyanarrativediscussionofthedifferencesorestimatescoveringonlysomeofthedifferences.A“c”responseappliesiftheMid-YearReviewincludesupdatedestimates,butnoexplanationfortherevisionsisprovided.A“d”responseappliesiftheestimatesofborrowinganddebthavenotbeenupdated.

Answer:c.Yes,estimatesofgovernmentborrowinganddebthavebeenupdated,butinformationonthedifferencesbetweentheoriginalandupdatedestimatesisnotpresented.

Source:Mid-YearReportonthe2018NationalBudget,September28,2018:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report

Comment:TheMid-YearReportpublishedbyendofSeptember,2018,hasnorevisedprojectionsofrevenueestimatesfortheremainderofFY2018,onlyfirstsemesteractualinformation.The'updated'Mid-YearReportonthe2018NationalBudget,pages13to19presentinformationonborrowinganddebt.https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-report-updated

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,estimatesofgovernmentborrowinganddebthavebeenupdated,butinformationonthedifferencesbetweentheoriginalandupdatedestimatesisnotpresented.Comments:Table12ofthemid-yearreporthttps://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reporthastheactualdebtdetailsasofmid-yearincludes,comparingtothemid-yearstatusofthepreviousyear(BY-1).Butthereisnoestimateforyear-end,orexplanationforanychanges.

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,estimatesofgovernmentborrowinganddebthavebeenupdated,andinformationonallofthedifferencesbetweentheoriginalandupdatedestimatesispresented.Comments:Table11,page20oftheFY2018Mid-YearReportpresentsacomparisonoftheNationalGovernmentfinancingprogrampublishedintheFY2018BESF(July2017)andtherevisedprogrampublishedintheFY2019BESF(July2018).ItshallbenotedthatthefinancingstrategywasapprovedbytheDevelopmentBudgetCoordinationCommitteeonJuly2,2018.Thistakesintoaccountrecentdevelopmentsdiscussedinpages19-21.Ontheotherhand,updatesontheNationalGovernmentdebtispresentedonpages22-23whiletheprojectionsondebtaspercentageofGDPisshowninpage35.

ResearcherResponseIrevisetheanswerto"c"basedonthecitationmadebythePeerReviewer.

IBPCommentThelinktotheacceptedversionoftheMYRis:https://www.dbm.gov.ph/index.php/dbcc-matters/reports/mid-year-report/1224-2018-mid-year-report#2018-mid-year-reportTheresearcher'srevisionfromDtoCisconfirmed.However,Table12doesnotshowupdatedprojectionsfortheremainderofthefiscalyear.Inaddition,debtasapercentageofGDPisnotacceptedforthisquestionwhentheprojectionofnominalGDPforthesameperiodisnotavailable.TheonlytablethatshowsrevisedprojectionsisTable11,onp.20,ascitedbythegovernmentreviewer,whichshowsrevisedprojectionsfornetnewborrowing.

84.DoestheYear-EndReportpresentthedifferencesbetweentheenactedlevels(includingin-yearchangesapprovedbythelegislature)andtheactualoutcomeforexpenditures?

GUIDELINES:Question84askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedlevelsandactualexpendituresfortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallexpenditures,alongwithanarrativediscussion.Answer“b”ifestimatesofthedifferencesforallexpendituresarepresented,butanarrativediscussionisnotincluded.Answer“c”ifestimatesofthedifferencesarepresentedforsome,butnotallexpenditures,regardlessofwhetheranarrativediscussionisincluded.Answer“d”ifnoestimatesofthedifferencesarepresentedintheYear-EndReport

Answer:a.Yes,estimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallexpendituresarepresented,alongwithanarrativediscussion.

Source:FY2017AnnualFiscalReport,August16,2018,pages19-23:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:TheFY2017AnnualFiscalReportpresentsonpages19-23presentestimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallexpenditures,alongwithanarrativediscussion.



85.DoestheYear-EndReportpresentexpenditureestimatesbyanyofthethreeexpenditureclassifications(byadministrative,economic,orfunctionalclassification)?

GUIDELINES:Question85asksifexpenditureestimatesintheYear-EndReportarepresentedbyanyoneofthethreeexpenditureclassifications—byadministrative,economic,andfunctionalclassifications—whichwereaddressedinQuestions1-5above.Eachoftheclassificationsanswersadifferentquestion:administrativeunitindicateswhospendsthemoney;functionalclassificationshowsforwhatpurposeisthemoneyspent;andeconomicclassificationdisplayswhatthemoneyisspenton.Unlikeclassificationbyadministrativeunit,whichtendstobeuniquetoeachcountry,functionalandeconomicclassificationsforgovernmentbudgetinghavebeendevelopedandstandardizedbyinternationalinstitutions.Cross-countrycomparisonsarefacilitatedbyadherencetotheseinternationalclassificationstandards.

Toanswer“a,”theYear-EndReportmustpresentexpenditureestimatesbyallthreeoftheexpenditureclassifications.Answer“b”ifexpenditureestimatesarepresentedbytwoofthesethreeclassifications.Answer“c”ifexpenditureestimatesarepresentedbyoneofthethreeclassifications.Answer“d”ifexpenditureestimatesarenotpresentedbyanyofthethreeclassificationsintheYear-EndReport.

Answer:b.Yes,theYear-EndReportpresentsexpenditureestimatesbytwoofthethreeexpenditureclassifications.

Source:FY2017AnnualFiscalReport,August16,2018,page19:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:TheFY2017AnnualFiscalReportpresentsonpage19expenditureestimatesbyeconomicclassification.Italsoshowsonpages24-69expendituresbyadministrativeclassificationinthesectiononFinancialandPhysicalPerformanceofSelectedMajorProgramsandProjects,ByDepartment.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theYear-EndReportpresentsexpenditureestimatesbytwoofthethreeexpenditureclassifications.Comments:TheresearchermentionedthattheAFRpresentsexpenditureestimatesbyeconomicandadministrativeclassification.ThismeritsaratingofB.

ResearcherResponseTherevisedansweris"b".TheFY2017AnnualFiscalReportpresentsonpage19expenditureestimatesbyeconomicclassification.Italsoshowsonpages24-69expendituresbyadministrativeclassificationinthesectiononFinancialandPhysicalPerformanceofSelectedMajorProgramsandProjects,ByDepartment.

IBPCommentAstheresearchernotes,theadministrativeclassificationisprovidedfornotallministries.However,asthetotalexpendituresofthemajordepartmentsismorethan2/3oftotalexpenditure,thisadministrativeclassificationisacceptedforthisquestion.ThescoreisrevisedfromCtoB.

85b.BasedontheresponsetoQuestion85,checkthebox(es)toidentifywhichexpenditureclassificationsareincludedintheYear-EndReport:

Answer:EconomicclassificationAdministrativeclassification

Source:FY2017AnnualFiscalReport,August16,2018,page19:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:TheFY2017AnnualFiscalReportpresentsonpage19expenditureestimatesbyeconomicclassification.Italsoshowsonpages24-69expendituresbyadministrativeclassificationinthesectiononFinancialandPhysicalPerformanceofSelectedMajorProgramsandProjects,ByDepartment.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:AdministrativeclassificationEconomicclassificationComments:TheresearchermentionedthattheAFRpresentsexpenditureestimatesbyeconomicandadministrativeclassification.

ResearcherResponseIrevisetheanswertoincludeadministrativeclassification.

86.DoestheYear-EndReportpresentexpenditureestimatesforindividualprograms?

GUIDELINES:Question86asksifexpenditureestimatesintheYear-EndReportarepresentedbyprogram.Thereisnostandarddefinitionfortheterm“program,”andthemeaningcanvaryfromcountrytocountry.However,forthepurposesofansweringthequestionnaire,researchersshouldunderstandtheterm“program”tomeananylevelofdetailbelowanadministrativeunit,suchasaministryordepartment.


Toanswer“a,”theYear-EndReportmustpresentexpenditureestimatesforallindividualprograms,accountingforallexpenditures.Answer“b”iftheYear-EndReportpresentsexpendituresforindividualprogramsthatwhencombinedaccountforatleasttwo-thirdsofexpenditures,butnotallexpenditures.Answer“c”iftheYear-EndReportpresentsprogramsthataccountforonlylessthantwo-thirdsofexpenditures.Answer“d”ifexpendituresarenotpresentedbyprogramintheYear-EndReport.

Answer:

c.Yes,theYear-EndReportpresentsestimatesforprogramsaccountingforlessthantwo-thirdsofexpenditures.


Comment:TheFY2017AnnualFiscalReportpresentsonpages24-69thePhysicalPerformanceofSelectedProgramsandProjectsof16executivedepartments.



87.DoestheYear-EndReportpresentthedifferencesbetweentheenactedlevels(includingin-yearchangesapprovedbythelegislature)andtheactualoutcomeforrevenues?

GUIDELINES:Question87askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedlevelsandactualrevenuesfortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallrevenues,alongwithanarrativediscussion.Answer“b”ifestimatesofthedifferencesforallrevenuesarepresented,butanarrativediscussionisnotincluded.Answer“c”ifestimatesofthedifferencesarepresentedforsome,butnotallrevenues,regardlessofwhetheranarrativediscussionisincluded.Answer“d”ifnoestimatesofthedifferencesarepresentedintheYear-EndReport.

Answer:a.Yes,estimatesofthedifferencesbetweentheenactedlevelsandtheactualoutcomeforallrevenuesarepresented,alongwithanarrativediscussion.


Comment:TheFY2017AnnualFiscalReportprovidesonpages11-14estimatesofthedifferencesbetweentheenactedlevelsandactualoutcomeforrevenuesalongwithanarrativediscussion.



88.DoestheYear-EndReportpresentrevenueestimatesbycategory(suchastaxandnon-tax)?

GUIDELINES:Question88askswhetherrevenueestimatesintheYear-EndReportarepresentedby“category”—thatis,whethertaxandnon-taxsourcesofrevenueareshownseparately.

Toanswer“a,”theYear-EndReportmustpresentrevenueestimatesclassifiedbycategory.

Answer:a.Yes,theYear-EndReportpresentsrevenueestimatesbycategory.

Source:

FY2017AnnualFiscalReport,August16,2018,page12:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:TheFY2017AnnualFiscalReportpresentsonpage12revenueestimatesbycategory.



89.DoestheYear-EndReportpresentindividualsourcesofrevenue?

GUIDELINES:

Question89askswhetherrevenueestimatesforindividualsourcesofrevenuearepresentedintheYear-EndReport.Thequestionappliestobothtaxandnon-taxrevenue.

Toanswer“a,”theYear-EndReportmustpresentallsourcesofrevenueindividually,accountingforallrevenue,and“other”or“miscellaneous”revenuemustaccountforthreepercentorlessofallrevenue.Answer“b”iftheYear-EndReportpresentsindividualsourcesofrevenuethatwhencombinedaccountforatleasttwo-thirdsofallrevenue,butnotallrevenue.Answer“c”iftheYear-EndReportpresentsestimatesofindividualrevenuesourcesthataccountforlessthantwo-thirdsofrevenue.Answer“d”ifindividualsourcesofrevenuearenotpresentedintheYear-EndReport.

Answer:b.Yes,theYear-EndReportpresentsindividualsourcesofrevenueaccountingforatleasttwo-thirdsof,butnotall,revenue.


Comment:TheFY2017AnnualFiscalReportpresentsonpages11-14,Tables13and14individualrevenuesources.However,"other"sourcesaccountsformorethan3%oftotalrevenues(around10%).



90.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofgovernmentborrowinganddebt,includingitscomposition,forthefiscalyearandtheactualoutcomeforthatyear?

GUIDELINES:Question90askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesandtheactualoutcomeforthefiscalyearforborrowinganddebt,includingitscomposition,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion13fordetailsonestimatesintheExecutive’sBudgetProposalofborrowinganddebt.Keyestimatesrelatedtoborrowinganddebtinclude:

theamountofnetnewborrowingrequiredduringthebudgetyear;thecentralgovernment’stotaldebtburdenattheendofthebudgetyear;andtheinterestpaymentsontheoutstandingdebtforthebudgetyear.

RefertoQuestion14fordetailsonestimatesintheExecutive’sBudgetProposalrelatedtothecompositionofthedebt.Coreinformationrelatedtothecompositionofgovernmentdebtinclude:


Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofborrowinganddebt,includingitscomposition,forthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyear,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyeararepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofgovernmentborrowinganddebtforthefiscalyearandtheactualoutcomeforthatyeararepresented.


Comment:TheFY2017FiscalReportpresentsonpages16-18thedifferencesbetweentheoriginalestimatesofgovernmentborrowinganddebtforthefiscalyearandtheactualincomeforthatyear,alongwithanarrativediscussion.

Netnewborrowing:Table9onp.15,includesbothoriginalestimatesandactualresults

Totaldebtburden,interestpayments,interestratesondebtinstruments(averagerateonly),maturityprofile(averageonly),anddomesticandexternaldebt:Table10onp.18Thisincludesonlythefinalresultattheendoftheyear,notthecomparisontotheoriginalestimates.ThereforethescoreisC.



90b.BasedontheresponsetoQuestion90,checkthebox(es)toidentifywhichestimatesofgovernmentborrowinganddebt,includingitscomposition,havethedifferencesbetweentheoriginalforecastandtheactualoutcomefortheyearpresentedintheYear-EndReport:

Answer:Theamountofnetnewborrowingrequiredduringthebudgetyear


Comment:TheFY2017FiscalReportpresentsonpages16-18thedifferencesbetweentheoriginalestimatesofgovernmentborrowinganddebtforthefiscalyearandtheactualincomeforthatyear,alongwithanarrativediscussion.

PeerReviewerOpinion:DisagreeSuggestedAnswer:Table9,page15oftheYear-EndReporthasdifferencesbetweenoriginalforecastandactualfor:AmountofnetnewborrowingTable10,onthecharacteristicsofthedebt,comparesFY2017withFY-1,notwithprogram.InterestpaymentsonOutstandingDebtforthebudgetyearcannotbeexactlyspecifiedsince"amortization"includesprepaymentofbonds.


ResearcherResponseTherevisedanswerwouldincludetheamountofnetnewborrowingduringthebudgetyear.AspointedoutbythePeerReviewer,Table9,page15oftheYear-EndReporthasdifferencesbetweenoriginalforecastandactualforamountofnetnewborrowing.

91.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalmacroeconomicforecastforthefiscalyearandtheactualoutcomeforthatyear?

GUIDELINES:Question91askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalmacroeconomicforecastforthefiscalyearandtheactualoutcomeforthatyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion15forthecomponentsofthemacroeconomicforecastintheExecutive’sBudgetProposal.CorecomponentsincludeestimatesofthenominalGDPlevel,inflationrate,realGDPgrowth,andinterestrates,althoughtheimportanceofothermacroeconomicassumptions,suchasthepriceofoil,canvaryfromcountrytocountry.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyeararepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:a.Yes,estimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyeararepresented,alongwithanarrativediscussion.


Comment:TheFY2017AnnualFiscalReportpresentsonpages4-11estimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.

RealGDPgrowthandNominalGDPinTable1,p.4InflationratesandInterestRatesinTable3,p.8Otherinformation:CompositionofGDPgrowthp.5,Oilpriceandexchangeratesp.8,Employmentratesp.9,



91b.BasedontheresponsetoQuestion91,checkthebox(es)toidentifywhichelementsofthemacroeconomicforecasthavethedifferencesbetweentheoriginalforecastandtheoutcomefortheyearpresentedintheYear-EndReport:

Answer:NominalGDPlevelInflationrateRealGDPgrowthInterestratesInformationbeyondthecoreelements


Comment:TheFY2017AnnualFiscalReportpresentsonpages4-11estimatesofthedifferencesbetweenalloftheoriginalmacroeconomicassumptionsforthefiscalyearandtheactualoutcomeforthatyear,includinganarrativediscussion.



92.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome?

GUIDELINES:Question92askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion49forthenonfinancialdataoninputsincludedintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimateofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomearepresented.


Comment:TheFY2017AnnualFiscalReportprovidesonpages24-69informationonthedifferencesbetweentheoriginalestimatesofnon-financialdataandtheactualoutcome,includinganarrativediscussion,ofthe16executivedepartments.

However,thereisnoupdatetostaffinglevels,whichisthemaininputcitedintheEBP.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,estimateofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataoninputsandtheactualoutcomearepresented.Comments:Theresearchermentionedthatinformationonthedifferencebetweentheoriginalestimatesofnon-financialdataandtheactualoutcomeispresented.ThismeritsaratingofC.

ResearcherResponseTheFY2017AnnualFiscalReportprovidesonpages24-69informationonthedifferencesbetweentheoriginalestimatesofnon-financialdataandtheactualoutcome.Theanswerisrevisedfrom"d"to"c".

IBPCommentIBPconfirmsthisscorerevision-forexample,onp.33thereisacomparisonbetweenthenumberoftextbooksprocuredandtheoriginaltarget.Asthiscountsasaninput,butthesekindofinputsarenotpresentedforallprogramsorministries,thescoreisC.

93.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome?

GUIDELINES:Question93askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.Nonfinancialdataonresultscanincludedataonbothoutputsandoutcomes,butnotoninputs(whichareaddressedinQuestion92).

RefertoQuestion50forthenonfinancialdataonresultsincludedintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimateofthedifferencesbetweensomebutnotalloftheoriginalestimatesofnonfinancialdataonresultsandtheactualoutcomearepresented.


Comment:TheFY2017AnnualFinancialReportpresentsonpages24-69estimatesofthedifferencesbetweentheoriginalestimatesofnon-financialdataonresultsandtheactualoutcome,includinganarrativediscussion,ofthe16executivedepartments.

Asanexample,seep.27:"For2017,theDA-OSECdistributedagriculturalequipmentandfacilitiesto53farmersand6,993groupsoffarmerswhichare26.0percentand76.2percentofitstargetsfor2017,respectively."



94.DoestheYear-EndReportpresentthedifferencesbetweentheenactedleveloffundsforpolicies(bothnewproposalsandexistingpolicies)thatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcome?

GUIDELINES:Question94askswhethertheYear-EndReportincludesestimatesofthedifferencesbetweentheenactedleveloffundsforpoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion52forassistancetothemostimpoverishedpopulationsintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustpresentestimatesofthedifferencesbetweentheenactedlevelforallpoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweentheenactedlevelforallpoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweentheenactedlevelforsomebutnotallofthepoliciesthatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented.

Answer:c.Yes,estimatesofthedifferencesbetweentheenactedlevelforsomebutnotallofthepoliciesthatareintendedtobenefitdirectlythecountry’smostimpoverishedpopulationsandtheactualoutcomearepresented.


Comment:TheFY2017AnnualFiscalReportpresentsonpages63-65estimatesofthedifferencesbetweentheenactedlevelforpolicies,suchasthePantawidPamilyangPilipinoProgram(ConditionalCashTransfer),SupplementalFeedingProgram,SocialPensionforIndigentCitizens,andSustainableLivelihoodProgram,thatareintendedtobenefitthecountry’smostimpoverishedpopulationsandtheactualoutcome,includinganarrativediscussion.However,thereisnoconsolidatedpresentationofpoverty-relatedprograms.



95.DoestheYear-EndReportpresentthedifferencesbetweentheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome?

GUIDELINES:Question95askswhethertheYear-EndReportpresentsestimatesofthedifferencesbetweentheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomefortheyear,andwhethertheseestimatesareaccompaniedbyanarrativediscussion.

RefertoQuestion33forestimatesofextra-budgetaryfundsintheExecutive’sBudgetProposal.

Toanswer“a,”theYear-EndReportmustincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome,includinganarrativediscussion.Answer“b”iftheYear-EndReportpresentsestimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome,butdoesnotincludeanarrativediscussion.Answer“c”ifestimatesofthedifferencesbetweensomebutnotalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomearepresented,regardlessofwhetheranarrativediscussionisincluded.A“d”responseappliesifestimatesofthedifferencesarenotpresented

Answer:d.No,estimatesofthedifferencesbetweentheoriginalestimatesofextra-budgetaryfundsandtheactualoutcomeisnotpresented.

Source:FY2017AnnualFiscalReport,August16,2018:https://www.dbm.gov.ph/images/2017_Annual_Fiscal_Report.pdf

Comment:TheFY2017AnnualFiscalReportdoesnotincludeestimatesofthedifferencesbetweenalloftheoriginalestimatesofextra-budgetaryfundsandtheactualoutcome.



96.IsafinancialstatementincludedaspartoftheYear-EndReportorreleasedasaseparatereport?

GUIDELINES:Question96askswhetherafinancialstatementisincludedaspartoftheYear-EndReport,orwhetheritisreleasedasaseparatereport.Thefinancialstatementcanincludesomeorallofthefollowingelements:acashflowstatement,anoperatingstatement,abalancesheet,andnotesonaccounting.Forpurposesofrespondingtothisquestion,thefinancialstatementinquestiondoesnotneedtobeaudited.Foranexampleofafinancialstatement,seethedocument"FinancialStatementsoftheGovernmentofNewZealand2013"(https://treasury.govt.nz/sites/default/files/2013-10/fsgnz-year-jun13.pdf)

Toanswer“a,”afinancialstatementmusteitherbeincludedintheYear-EndReportormustbereleasedasaseparatereport.Answer“a”appliesifafinancialstatementisreleasedasaseparatereport,eveniftheYear-EndReportisnotpubliclyavailable.Answer“b”appliesifnofinancialstatementisreleasedeitheraspartoftheYear-EndReportorasaseparatereport.

Answer:a.Yes,afinancialstatementispartoftheYear-EndReportorisreleasedasaseparatereport.

Source:FY2017AnnualFinancialReportforNationalGovernment,Vol.I-II:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

Seep.47-51ofhttps://www.coa.gov.ph/index.php/national-government-agencies-1/category/7205-2017?download=35712:annual-financial-report-for-the-national-government-volume-i

Comment:AfinancialstatementisreleasedasaseparatedocumentfromtheYear-EndReport.Itcanbefoundinthe2017AnnualFinancialReportfortheNationalGovernmentproducedbytheCommissiononAudit.



https://treasury.govt.nz/sites/default/files/2013-10/fsgnz-year-jun13.pdf

97.Whattypeofaudits(compliance,financial,orperformance)hastheSupremeAuditInstitution(SAI)conductedandmadeavailabletothepublic?

GUIDELINES:Question97asksaboutthetypesofauditsconductedbytheSupremeAuditInstitution(SAI).Therearethreebasictypesofaudits:

Financialauditsareintendedtodetermineifanentity’sfinancialinformationisaccurate(freefromerrorsorfraud)andpresentedinaccordancewiththeapplicablefinancialreportingandregulatoryframework.SeeISSAI200(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetail.Complianceauditslookattheextenttowhichtherelevantregulationsandprocedureshavebeenfollowed.SeeISSAI400(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetails.Performanceauditsassesswhetheractivitiesareadheringtotheprinciplesofeconomy,efficiency,andeffectiveness.SeeISSAI300(http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm)formoredetails.≈

Financialandcomplianceauditsaremorecommonthanperformanceaudits,whichusuallyoccuronlyonceaperformanceframeworkhasbeenagreedupon.Insomecountries,theSAI’smandatelimitsthetypeofaudititcanconduct.

Toanswer“a,”theSAImusthaveconductedallthreetypesofaudit—financial,compliance,andperformance—andmadeallofthemavailabletothepublic.A“b”responseappliesiftheSAIhasconductedtwoofthethreeaudittypes,anda“c”appliesifithasconductedonlyonetypeofaudit.Answers“b”and“c”maybeselectedeveniftheAuditReportisnotpubliclyavailable,aslongastheSAIhasconductedcomplianceorperformanceauditsandmadethemavailabletothepublic.A“d”responseappliesiftheSAIhasnotconductedanyofthethreetypesofaudits,orhasnotmadethemavailabletothepublic.

Answer:a.TheSAIhasconductedallthreetypesofaudits(compliance,financial,orperformance)andmadethemavailabletothepublic.


https://www.coa.gov.ph/index.php/bureau-of-fire-protection-modernization-program

Comment:TheCommissiononAudit(COA)conductsallthreetypesofaudits.Intheconductofcomplianceaudit,theFY2017AnnualFinancialReport(AFR)findsonpage433thatnon-observancebyanumberofagenciesofcertainlaws,rulesandregulationsdefeatingthepurposeforwhichthesewereenactedandmayresultinwastageofgovernmentfunds.Financialauditsarecarriedouttoevaluatethefairnessofthepresentationofagencies'financialstatementsaswellascheckwhetherthefinancialreportingframeworkcomplieswiththePhilippinePublicSectorAccountingStandardsorinternationalfinancialreportingstandards.Onpage52ofthe2017AFR,itwasindicatedthatFinancialStatementsweresubmittedby321nationalgovernmentagenciesincludingthestateuniversitiesandcolleges,AutonomousRegionofMuslimMindanaoandgovernmentcorporations.COAalsoconductsPerformanceorvalue-for-moneyauditstoascertaintheeconomy,efficiency,andeffectivenessintheimplementationofagencyprograms,projects,andactivities.The2017AFRobservesonpage347thatunutilizedappropriations/unobligatedallotments/unusedbudgetsignifyinadequateplanningandbudgetingorinefficientprogram/projectimplementationthatleadstothenon-deliveryoftheexpectedoutputsandresults.



98.WhatpercentageofexpenditureswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited?

GUIDELINES:Question98focusesonthecoverageofauditsbytheSupremeAuditInstitution(SAI),askingwhatpercentageofexpenditureswithintheSAI’smandatehasbeenaudited.

TheSAI’smandateistypicallydefinedinstatute.Onlyexpendituresrelatedtobudgetarycentralgovernment(ministries,departments,andagencies)thatarewithintheSAI’smandateshouldbeconsideredforthisquestion.(Question99addressesauditsofextra-budgetaryfunds.)Further,thequestiondoesnotapplyto“secretprograms”(forexample,security-relatedexpendituresthatareconfidential).Further,ifthemandategivestheSAItheauthoritytooutsourcesomeaudits,thenthoseauditscountforpurposesofthisquestion.

OnlytheAuditReportidentifiedinSection1shouldbeusedtoanswerthisquestion.Financialauditsandcomplianceaudits,orahybridofthetwo,canbetakenintoaccounttoanswerthisquestion.Performanceauditsshouldnotbeconsideredforthisquestion.

Toanswer“a,”allexpenditureswithintheSAI’smandatemustbeaudited.A“b”responseappliesifatleasttwo-thirds,butnotall,expenditureswithintheSAI’smandatehavebeenaudited.A“c”responseisappropriatewhenlessthantwo-thirdsofexpenditureswithintheSAI’smandatehavebeenaudited.A“d”responseapplieswhennoexpenditureshavebeenaudited.

http://www.issai.org/issai-framework/3-fundamental-auditing-priciples.htm



Answer:b.Expendituresrepresentingatleasttwo-thirdsof,butnotall,expenditureswithintheSAI’smandatehavebeenaudited.

Source:1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/the-1987-constitution-of-the-republic-of-the-philippines/the-1987-constitution-of-the-republic-of-the-philippines-article-ix/

FY2017AnnualFinancialReportforNationalGovernment,Vol.I-II:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

COAMemorandumNos.84-316-AasamendedbyCOAResolutionNo.95-505,July4,1995:https://www.academia.edu/34049563/COMMISSION_ON_AUDIT_RESOLUTION_NO._95-505_July_4_1995

Comment:The1987ConstitutiongrantstheCommissiononAudit(COA)exclusiveauthoritytodefinethescopeofauditandtoestablishthemethodsandtechniquesrequiredtoperformitsduty.COAprescribedstatisticalsamplingmethodologiesthroughtheissuanceofCOAMemorandumNos.84-316-A(January31,1984),No.85-316-C(September19,1985),No.93-316D(November11,1993),asamendedbyCOAResolutionNo.95-505,inviewofthevolumeandcomplexityoftransactionsingovernment.Thesesamplingtechniquesincludethesimplifiedsamplingscheme,testauditmonthscheme,andtestauditdayscheme.COA,uponitsadoptionoftheIntegratedResultsandRiskBasedAuditin2011,nolongeraudits100percentofexpenditures.However,allunitsascoveredbythesamplingmethods,thereforethescoreisA.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.AllexpenditureswithintheSAI’smandatehavebeenaudited.Comments:Basedonthecommentoftheresearcher,theratingshouldbeA.Effectively,thereis100%auditofexpendituresasmandated,basedontheestablishedtechniquesandmethodspromulgatedbyCOApursuanttoitsauthorityundertheConstitution.Thesamplingtechniquesandrisk-basedauditapproach,whicharerecognizedandacceptedallowfora100%audit.COAhasprescribedCOAResolutionNos.2019-014and2017-005datedMay21,2019andApril26,2017,respectivelyandCOAMemorandumNo.2017-009ontheconductofCyclicalAuditofWaterDistricts;COAMemorandumNo.97-002datedJanuary9,1997ontheconductofCyclicalAuditoftheBarangays;COAResolutionNo.2011-009datedOctober20,2011ontheUseoftheIntegratedResultsandRisk-BasedAuditManualandForensicAuditManual;andCOAMemorandumNos.84-316A(Jan31,1984),No.85-316C(Sept19,1985),No93-316D(Nov11,1993),asamendedbyCOAResolutionNo.95-505.

ResearcherResponseTherevisedansweris"a".Effectively,thereis100%auditofexpendituresasmandated,basedontheestablishedtechniquesandmethodspromulgatedbyCOApursuanttoitsauthorityundertheConstitution.

IBPCommentBasedonthecommentofthepeerreviewer,iftherewereonefinancialstatementsthatwerenotincludedintheauditreport,andthereforenotcoveredbythesamplingmethod,thentheappropriatescoreisB.Therefore,theresearcher'soriginalresponseisconfirmed.

99.Whatpercentageofextra-budgetaryfundswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited?

GUIDELINES:

Question99focusesonauditsofextra-budgetaryfunds,askingwhatpercentageofextra-budgetaryfundswithinthemandateoftheSupremeAuditInstitution(SAI)hasbeenaudited.Thesefunds,althoughtechnicallyoutsidethebudget,aregovernmentalinnatureandthusshouldbesubjecttothesameauditrequirementasothergovernmentprograms.

TheSAI’smandateistypicallydefinedinstatute.Onlyexpendituresrelatedtoextra-budgetaryfundswithintheSAI’smandateshouldbeconsideredforthisquestion.(Question98addressesauditsofbudgetarycentralgovernment.)Further,ifthemandategivestheSAItheauthoritytooutsourcesomeaudits,thenthoseauditscountforpurposesofthisquestion.

Toanswer"a,”allextra-budgetaryfundswithintheSAI’smandatemustbeaudited.A“b”responseappliesifextra-budgetaryfundsaccountingforatleasttwo-thirdsof,butnotall,expendituresassociatedwithextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.A“c”responseappliesifextra-budgetaryfundsaccountingforlessthantwo-thirdsofexpendituresassociatedwithextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.A“d”responseappliesifextra-budgetaryfundshavenotbeenaudited.

Answer:a.Allextra-budgetaryfundswithintheSAI’smandatehavebeenaudited.

Source:

FY2017AnnualFinancialReportforNationalGovernment,Vol.I-II:https://www.coa.gov.ph/national-government-agencies-1/category/7205-2017

COAMemorandumNos.84-316-AasamendedbyCOAResolutionNo.95-505,July4,1995:https://www.academia.edu/34049563/COMMISSION_ON_AUDIT_RESOLUTION_NO._95-505_July_4_1995

Comment:Extra-budgetaryfundsaccountingforatleasttwo-thirds,butnotall,expendituresassociatedwithextra-budgetaryfundswiththemandateoftheCommissiononAudithavebeenauditedgiventheadoptionofstatisticalsamplingmethodologies.However,allEBFsarecoveredbythesamplingmethod,thereforethescoreisA.



100.DoestheannualAuditReport(s)preparedbytheSupremeAuditInstitution(SAI)includeanexecutivesummary?

GUIDELINES:Question100askswhethertheannualAuditReportincludesanexecutivesummary.OnlytheAuditReportidentifiedinSection1shouldbeusedtoanswerthisquestion.TheAuditReportcanbeafairlytechnicaldocument,andanexecutivesummaryofthereport’sfindingscanhelpmakeitmoreaccessibletothemediaandthepublic.

Toanswer"a,"theAuditReportmustincludeatleastoneexecutivesummarysummarizingthereport’scontent.Answer“b”appliesiftheAuditReportdoesnotincludeanexecutivesummary,ortheAuditReportisnotmadepubliclyavailable.

Answer:a.Yes,theannualAuditReport(s)includesoneormoreexecutivesummariessummarizingthereport’scontent.


Comment:TheFY2017AnnualFinancialReportprovidesonpagesi-vianexecutivesummaryofthedocument’scontent.



101.Doestheexecutivemakeavailabletothepublicareportonwhatstepsithastakentoaddressauditrecommendationsorfindingsthatindicateaneedforremedialaction?

GUIDELINES:Question101askswhethertheexecutivereportstothepubliconthestepsithastakentoaddressauditrecommendationsmadebytheSupremeAuditInstitution(SAI).Theultimatepurposeofauditsistoverifythatthebudgetwasexecutedinamannerconsistentwithexistinglaw,andtoholdthegovernmentaccountableforthisexecutionanditsfutureimprovement.Theextenttowhichauditsachievethelatterdependsonwhetherthereisadequateandtimelyfollow-upontherecommendationsprovidedintheSAI’sauditreports.

Toanswer"a,"theexecutivemustreportpubliclyonthestepsithastakentoaddressallauditfindings.A“b”responseappliesiftheexecutivereportspubliclyonthestepsithastakentoaddressmost,butnotall,auditfindings.A“c”responseappliesiftheexecutivereportspubliclyonthestepsithastakentoaddressonlysomeauditfindings.Aslongastheexecutivereportspubliclyonthestepsithastakentoaddressauditfinding,answer“a,”“b,”or“c”maybeselected,eveniftheAuditReportisnotmadepubliclyavailable.A“d”responseappliesiftheexecutivedoesnotreportatallonitsstepstoaddressauditfindings.

Answer:d.No,theexecutivedoesnotreportonstepsithastakentoaddressauditfindings.

Source:Theexecutivedoesnotpublishareportonstepstoaddressauditfindings.

Comment:


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,theexecutivereportspubliclyonsomeauditfindings.Comments:SomeagenciespublishthestatusofimplementationofPriorYear'sAuditRecommendationsintheirwebsites.1.Public-PrivatePartnershipCenterofthePhilippinesPages35-37https://ppp.gov.ph/wp-content/uploads/2017/06/2016-PPPC-Audited-Financial-Report.pdf2.PhilippineRetirementAuthorityPages38-42https://pra.gov.ph/wp-content/uploads/2018/09/i.-Annual-Audit-Report-CY-2017.pdf3.PhilippineCoconutAuthorityPages116-154http://www.pca.da.gov.ph/pdf/compliance2018/AnnualFinancialReport/2017annualauditedfs.pdf

ResearcherResponseIrevisetheanswerto"c"basedonthereportscitedbytheGovernmentReviewer.

IBPCommentThankstothegovernmentreviewerforthesereports.However,eachofthelinksonlyrepresentstheauditreportfromtheCOAtrackingactionstakenonprioryearauditrecommendations.Thesereportsdonotcomefromtherespectiveministries,themselves.ThosekindofaudittrackingupdatesareassessedinQ101anddonotcountforthisquestion.Thereforetheresearcher'soriginalresponseofDisconfirmed.

102.DoeseithertheSupremeAuditInstitution(SAI)orlegislaturereleasetothepublicareportthattracksactionstakenbytheexecutivetoaddressauditrecommendations?

GUIDELINES:Question102askswhethertheSupremeAuditInstitution(SAI)orthelegislaturetrackactionsbytheexecutivetoaddressauditrecommendations.Afterauditresultsandrecommendationsarediscussedandvalidatedbythelegislature,theexecutiveisnormallyaskedtotakecertainactionstoaddresstheauditfindings.Foraccountabilitypurposes,thepublicneedstobeinformedaboutthestatusofthoseactions,andstepstheexecutivehastakentoaddressauditrecommendations.Inadditiontotheexecutivereportingonitsactions(seeQuestion101),theSAIandlegislature—asthekeyoversightinstitutions—havearesponsibilitytokeepthepublicinformedbytrackingtheexecutive’sprogressinaddressingauditrecommendations.

Toanswer“a,”theSAIorlegislaturemustreportpubliclyonwhatstepstheexecutivehastakentoaddressallauditfindings.A“b”responseappliesiftheSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressmost,butnotall,auditfindings.A“c”responseappliesiftheSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressonlysomeauditfindings.AslongastheSAIorlegislaturereportspubliclyonthestepstheexecutivehastaken,answer“a,”“b,”or“c”maybeselected,eveniftheAuditReportisnotmadepubliclyavailable.A“d”responseappliesifneithertheSAInorthelegislaturereportsontheexecutive’sstepstoaddressauditfindings.

Answer:a.Yes,theSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressallauditrecommendations.

Source:CommissiononAudit,“P1.54BillioninDisallowancesSettledin2016,”January11,2018:https://www.coa.gov.ph/index.php/2013-06-19-13-07-50/news-releases/244-p1-54-billion-in-disallowances-settled-in-2016-coa

ElizabethMarcelo,“COA:P1.54Bindisallowedexpendituresrecoveredin2016,”PhilippineStar,January12,2018:https://www.philstar.com/headlines/2018/01/12/1777055/coa-p154b-disallowed-expenditures-recovered-2016

Comment:TheCommissiononAuditpresentsinitswebsiteonJanuary11,2018thestepstheexecutivehastakentoaddressauditfindings.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:

a.Yes,theSAIorlegislaturereportspubliclyonwhatstepstheexecutivehastakentoaddressallauditrecommendations.Comments:TheFY2017AnnualAuditReports(AARs)ofNationalGovernmentAgenciesarethedocumentsthatmustbeassessedforallquestionsregardingtheAuditReport.ItshallbenotedthattheAnnualFiscalReportisjustthesummaryoftheAARs.ThestatusofimplementationofauditrecommendationsispartoftheAARwhichispublishedintheCOAwebsite.Forexample,pleaseseepage6oftheAARfortheEnergyRegulatoryCommissionforFY2017:https://www.coa.gov.ph/phocadownloadpap/userupload/annual_audit_report/NGAs/2017/National-Government-Sector/Department-of-Energy/ERC_ES2017.pdf

ResearcherResponseTheSAIreportspubliclyonmostauditfindings.

IBPCommentThegovernment'snotesaboutthesectionsoftheAARsthatincludethefeedbackfromtheprioryearauditreports(andalsocitedinQ101,butthatapplyhere)isnoted.Asthereaisconfirmed.ThescoreisrevisedfromBtoA.

103.IsthereanIndependentFiscalInstitution(IFI)thatconductsbudgetanalysesforthebudgetformulationand/orapprovalprocess?

GUIDELINES:Question103examineswhetheranIndependentFiscalInstitution(IFI)existsthatcontributesbudgetanalysestothebudgetformulationand/orapprovalprocess.AccordingtothePrinciplesforIndependentFiscalInstitutions,adoptedbytheOECDCouncilin2014,“independentfiscalinstitutionsarepubliclyfunded,independentbodiesunderthestatutoryauthorityoftheexecutiveorthelegislaturewhichprovidenon-partisanoversightandanalysisof,andinsomecasesadviceon,fiscalpolicyandperformance”,andwith“aforward-lookingexantediagnostictask”.Inpractice,theycomeintwomainforms:

Parliamentarybudgetoffices(alsoknownasPBOs)suchastheCongressionalBudgetOfficeintheUnitedStates(https://www.cbo.gov/),theParliamentaryBudgetOfficeinSouthAfrica(https://www.parliament.gov.za/parliamentary-budget-office),andtheCenterforPublicFinanceStudiesinMexico(CentrodeEstudiosdelasFinanzasPúblicas,http://www.cefp.gob.mx/);or

FiscalcouncilssuchastheOfficeforBudgetResponsibilityintheUnitedKingdom(https://obr.uk/),theFiscalPolicyCouncilinSweden(FinanspolitiskaRådet,http://www.finanspolitiskaradet.com/),andtheHighCouncilforPublicFinancesinFrance(HautConseildesfinancespubliques,https://www.hcfp.fr/).

Formoreinformation,seevonTrappetal.‘PrinciplesforIndependentFiscalInstitutionsandCaseStudies’,OECDJournalonBudgeting15:2(specialissue,2016),https://doi.org/10.1787/budget-15-5jm2795tv625.

Toanswer“a,”theremustbeanIFI,anditsindependencemustbesetinlaw.Inaddition,itmusthavesufficientstaffingandresources,includingfunding,tocarryoutitstasks.Answer“b”appliesifanIFIexists,buteitheritsindependenceisnotsetinlaworitsstaffingandresourcesareinsufficienttocarryoutitstasks.Answer“c”appliesifanIFIexists,butitsindependenceisnotsetinlawanditlackssufficientstaffingandresources.Answer“d”appliesifnoIFIexists.

Iftheansweris“a,”“b,”or“c,”pleasespecifyinthecommentsthenameandtypeofIFIthatexists(e.g.,parliamentarybudgetofficeorfiscalcouncil).Iftheansweris“a”or“b,”identifythelawthatguaranteesitsindependence,andprovideevidenceinsupportoftheassessmentoftheadequacyofitsstaffingandresources.ThiscanincludetheIFI’stotalbudgetallocationoverrecentyears,anypressreportsthatdiscussperceivedfundingshortfalls,assessmentsbyinternationalorganizations,and/orinformationfrominterviewswithstaffoftheIFI.

Answer:c.Yes,thereisanIFI,butitsindependenceisnotsetinlawanditsstaffingandresources,includingfunding,areinsufficienttocarryoutitstasks.

Source:CongressionalPlanningandBudgetResearchDepartment(CPBRD)Website:http://cpbrd.congress.gov.ph/2012-06-30-13-05-43/history-overview-and-directorySenateofthePhilippinesWebsite:https://www.senate.gov.ph/secretariat/osec.asp

Comment:TheIFIsarenotsetinlawandcomeintheformofparliamentarybudgetofficesinboththeHouseofRepresentativesandSenate.IntheHouseofRepresentatives,theCPBRDisunderthedirectcontrolandsupervisionoftheOfficeoftheSpeakerbyvirtueofAdministrativeOrderNo.05-15onOctober5,2015.IntheSenate,therearetwobudgetoffices,namelytheLegislativeBudgetResearchandMonitoringOffice(LBRMO)andtheSenateEconomicPlanningOffice(SEPO),whicharebothundertheSenateSecretary.

However,thestaffingandresourcesarestilllimitedtoperformIFIfunctions.



https://www.cbo.gov/

https://www.parliament.gov.za/parliamentary-budget-office

http://www.cefp.gob.mx/

https://obr.uk/

http://www.finanspolitiskaradet.com/

https://www.hcfp.fr/

https://doi.org/10.1787/budget-15-5jm2795tv625

104.DoestheIndependentFiscalInstitution(IFI)publishmacroeconomicand/orfiscalforecasts?

GUIDELINES:Question104assesseswhetheranIndependentFiscalInstitution(IFI)hasaroleinproducingthemacroeconomicforecast(e.g.,GDPgrowth,inflation,interestrates,etc.)and/orthefiscalforecast(revenues,expenditure,deficits,anddebt),andifso,whatkindofroleithas.Macroeconomicand/orfiscalforecastingisatypicalcorefunctionacrossIFIs,buttheirroleinforecastingtakesseveralforms(vonTrappetal.2016,p.17andTable2).SomeIFIsproducejustamacroeconomicforecast,whileothersproduceacompletefiscalforecast(whichalsotypicallyrequiresanunderlyingmacroeconomicforecast).Insomecases,thefiscalforecastreflectscontinuationofcurrentbudgetpolicies;suchforecastscanbeusedbythelegislature,themedia,orthepublictoassesstheprojectionsintheexecutive’sbudgetreflectingthegovernment’spolicyproposals.

SomeIFIsproducetheofficialmacroeconomicandfiscalforecastsusedintheexecutive’sbudget.Inothercases,IFIsdonotpreparetheirownindependentforecasts,butratherproduceanassessmentoftheofficialestimates,orprovideanopinionon,orendorsementof,thegovernment’sforecasts.Someothershavenoroleatallinforecasting.

Toanswer“a”,theremustbeanIFIthatpublishesbothitsownmacroeconomicANDfiscalforecasts.Answer“b”appliesifanIFIpublishesitsownmacroeconomicORfiscalforecast(butnotboth).Answer“c”appliesiftheIFIdoesnotpublishamacroeconomicorfiscalforecast,butratherpublishesanassessmentoftheofficialforecastsproducedbytheexecutiveandusedinthebudget.Chooseoption“d”ifthereisnoIFI;orifthereisanIFIthatneitherpublishesitsownmacroeconomicand/orfiscalforecasts,noracommentaryontheofficialforecastsforthebudget.

Macroeconomicforecastsmayincludeindicatorsrelatingtoeconomicoutputandeconomicgrowth,inflation,andthelabormarket,amongstothers.Fiscalforecastsmayincludeestimatesofrevenues,expenditures,thebudgetbalance,anddebt.Iftheansweris“a”or“b,”pleasespecifywhichindicatorsandestimatesareincludedintheforecastsandwhethertheforecastisusedbygovernmentastheofficialforecast.Iftheansweris“c,”pleasedescribethenatureanddepthoftheassessment(e.g.,thelengthofthecommentary,orwhetheritcoversbotheconomicandfiscalissues).

Answer:c,No,theIFIdoesnotpublishitsownmacroeconomicorfiscalforecast,butitdoespublishanassessmentoftheofficialmacroeconomicand/orfiscalforecastsproducedbytheexecutive.

Source:CongressionalPlanningandBudgetResearchDepartment(CPBRD),2019BudgetBriefer:BriefingNotesfortheDBCCPresentationontheProposed2019NationalBudget:July31,2018:http://cpbrd.congress.gov.ph/2012-06-30-13-06-51/2012-06-30-13-36-49/905-bb2018-02-briefing-notes-for-the-dbcc-presentation-on-the-proposed-2019-national-budget

Comment:TheIFIdoesnotpublishitsownmacroeconomicorfiscalforecast,butitdoespublishanassessmentoftheofficialmacroeconomicandfiscalforecastsproducedbytheexecutive.Forexample,theCPBRDpublishedthe2019BudgetBriefer.



105.DoestheIndependentFiscalInstitution(IFI)publishitsowncostingsofnewpolicyproposals,toassesstheirimpactonthebudget?

GUIDELINES:Question105assesseswhetheranIndependentFiscalInstitution(IFI)hasacostingfunctionthatinvolvesassessingthebudgetaryimplicationsofnewpolicyproposalsforbothrevenuesandexpenditures,andifso,whatkindofroleithas.ManyIFIshaveacostingrole,butwithsubstantialdiversityinthenatureandextentofthiswork(vonTrappetal2016,pp.17-18andTable2).Someassessvirtuallyallnewpolicyproposals,whileotherscostonlyaselectionofnewpolicyproposals.Othersonlypublishopinionson,orscrutinizethecostingsof,budgetmeasuresproducedbytheexecutive.

Toanswer“a,”theIFImustpublishitsowncostingsofall(orvirtuallyall)newpolicyproposals.Answer“b”appliesiftheIFIpublishesitsowncostings,butonlyformajornewpolicyproposals–forinstance,onlythoseproposalsthatcostorsaveaboveacertainamount.Answer“c”appliesiftheIFIpublishesitsowncostings,butonlyonalimitednumberofproposals.Thiscouldoccur,forinstance,iftheIFIlackedthecapacitytoassessproposalsdealingwithcertainsectors.Insteadofproducingacostestimate,itcanalsopublishanassessmentoftheestimatesproducedbytheexecutive.Answer“d”appliesifthereisnoIFI;oriftheIFIdoesnotpublishitsowncostingsofnewpolicyproposalsorprovideanassessmentoftheofficialcostingsofnewpolicyproposals.

Answer:

c.Yes,theIFIpublishesitsowncostingsofalimitednumberofnewpolicyproposals.

Source:CongressionalPlanningandBudgetResearchDepartment(CPBRD),AgencyBudgetNotesFY2019:http://cpbrd.congress.gov.ph/2012-06-30-13-06-51/2012-06-30-13-36-48

Comment:TheIFIpublishesanassessmentoftheestimatesproducedbytheexecutive.ThroughtheAgencyBudgetNotes,theCPBRDexaminesthepast,currentandproposedbudgetintermsofallocationbyprogram/project,typeofexpenditure(1.e.currentexpendituresandcapitaloutlay),andsharesofregionaloffices.



106.Inthepast12months,howfrequentlydidtheheadoraseniorstaffmemberoftheIndependentFiscalInstitution(IFI)takepartandtestifyinhearingsofacommitteeofthelegislature?

GUIDELINES:Question106concernstheinteractionbetweentwoimportantoversightactorsandassesseshowfrequentlytheIndependentFiscalInstitution(IFI)madehigh-levelinputstotheworkoflegislativecommittees.AlmostallIFIsinteractwiththelegislatureinsomeform(vonTrappetal2016,p.18),buttheintensityoftheinteractionvaries.Thisquestionassessesthisaspectbyasking,withreferencetothepast12months,howfrequentlytheheadoraseniorstaffmemberoftheIFItookpartandtestifiedinhearingsofacommitteeofthelegislature.TheintentistoassesstheextenttowhichtheIFIstaffmemberinquestionwasnotonlypresentatameetingofalegislativecommittee,butwasanactiveparticipant(asopposedtoapassiveobserver,servingonlyasaresourcewhencalledupon).Asevidencetosupportyouranswer,youcanrefertoofficialrecordsoflegislativecommittees,websitesandannualreportsoftheIFI,pressreleasesandmediacoverage,forexample.Chooseanswer“a”ifthisoccurredfivetimesormore;“b”forthreetimesormore,butlessthanfivetimes;and“c”foronceortwice.Answer“d”shouldbeselectediftheheadoraseniorstaffmemberoftheIFInevertookpartandtestifiedinhearingsofacommitteeofthelegislature,orifthereisnoIFI.

Answer:c.Rarely(i.e.,onceortwice).

Source:CommitteeinvitationletterstotheCongressionalPlanningandBudgetResearchDepartment,2018

Comment:TheCPBRDwasinvitedasaresourcepersonincommitteehearingsandintechnicalworkinggroupsforspecificlegislation.

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Rarely(i.e.,onceortwice).Comments:Theinvitationlettersaremoreinthenatureof"resourcewhencalledupon."TheCPBRDproducesgoodwrittenproducts,andhashostedgeneralsessionsontopicsattheHouseofRepresentatives,butthereisnoevidence(eitherinmediareports,congressionalorCPBRDrecords,ortheobservationofmediapersonnel)ofactiveparticipation.Sinceitisdifficulttoproveanegative,andbecauseCPBRDpersonnelareavailableatcommitteesessions,a"rarely"scoreischosen.


ResearcherResponseAgree

107.Doesthefulllegislatureand/oralegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal?

GUIDELINES:

Question107askswhetherthelegislaturedebatesbudgetpoliciespriortothetablingoftheExecutive’sBudgetProposal.Ingeneral,priortodiscussingtheExecutive’sBudgetProposalforthecomingyear,thelegislatureshouldhaveanopportunitytoreviewthegovernment’sbroadbudgetprioritiesandfiscalparameters.OftentimesthisinformationislaidoutinaPre-BudgetStatement,whichtheexecutivepresentstothelegislaturefordebate.(SeeQuestions54-58.)

Anumberofcountriesconductapre-budgetdebateinthelegislaturearoundsixmonthsbeforethestartofthebudgetyear.Insomecases,theyadoptlawsthatguidetheupcomingbudget,forexampletheBudgetGuidelinesLawinBrazilandtheSpringFiscalPolicyBillinSweden.Apre-budgetdebatecanservetwomainpurposes:1)toallowtheexecutivetoinformthelegislatureofitsfiscalpolicyintentionsbypresentingupdatedreportsonitsannualandmedium-termbudgetstrategyandpolicypriorities;and2)toestablish“hard”multi-yearfiscaltargetsorspendingceilings,whichthegovernmentmustadheretowhenpreparingitsdetailedspendingestimatesfortheupcomingbudgetyear.

Toanswer“a,”thefulllegislaturemustdebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposalandapproverecommendationsfortheupcomingbudget.

Answer“b”appliesifalegislativecommittee(butnotthefulllegislature)debatesbudgetpolicypriortothetablingoftheExecutive’sBudgetProposal,andapprovesrecommendationsforthebudget.Option“b”alsoappliesif,inadditiontotheactionbythecommittee,thefulllegislaturealsodebatesbudgetpolicyinadvanceofthebudget,butdoesnotapproverecommendations.

Answer“c”appliesifthefulllegislatureand/oralegislativecommitteedebatesbudgetpolicypriortothetablingoftheExecutive’sBudgetProposal,butdoesnotapproverecommendationsforthebudget.Answer“d”appliesifneitherthefulllegislaturenoranylegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal.

Inyourcomment,pleaseindicatethedatesofthebudgetdebate,andifboththefulllegislatureandalegislativecommitteeheldadebate.Notethatadebatedoesnotneedtobeopentothepublic,butapublicrecordofthemeetingorapublicnoticethatthemeetingoccurredisrequired.Inaddition,pleaseindicatewhetherthebudgetdebatewasfocusedonaPre-BudgetStatementpublishedbytheExecutive.IftheExecutivedidnotpublishaPre-BudgetStatement,thenpleaseindicatewhatservedasthefocusofthelegislature’sdebate(forinstance,areportreleasedbyanIFIorsomeotherinstitution).

Answer:d.No,neitherthefulllegislaturenoranylegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive’sBudgetProposal.

Source:CommitteeDailyBulletin,Vol.III,No.5,HouseofRepresentatives,17thCongress,July31,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v3i5-20180731.pdf

Comment:TheCommitteeonAppropriationsoftheHouseofRepresentativesopeneditsdeliberationsontheproposedFY2019NationalExpenditureProgramwithabriefingprovidedbythemembersoftheDevelopmentBudgetCoordinatingCommittee(DBCC)onJuly31,2018.NeitherthefulllegislaturenoranylegislativecommitteedebatebudgetpolicypriortothetablingoftheExecutive'sBudgetProposal.



108.HowfarinadvanceofthestartofthebudgetyeardoesthelegislaturereceivetheExecutive’sBudgetProposal?

GUIDELINES:Question108examineshowfarinadvanceofthestartofthebudgetyearthelegislaturereceivestheExecutive’sBudgetProposal.InternationalgoodpracticerecommendsthattheExecutive’sBudgetProposalshouldbesubmittedtothelegislaturefarenoughinadvancetoallowthelegislaturetimetoreviewitproperly,oratleastthreemonthspriortothestartofthefiscalyear.(See,forinstance,Principle2.2.2oftheIMF’sFiscalTransparencyHandbook(2018)(https://www.elibrary.imf.org/view/IMF069/24788-9781484331859/24788-9781484331859/24788-9781484331859.xml).

Forthepurposesofrespondingtothisquestion,if—andonlyif—themostrecentbudgetsubmissionoccurredlaterthanusualasaresultofaparticularevent,suchasanelection,pleaseuseamorenormalyearasthebasisfortheresponse.If,however,delayshavebeenobservedformorethanonebudgetyear,andthelegislaturehasnotreceivedtheExecutive’sBudgetProposalinatimelymanneronmorethanoneoccasioninthelastthreeyears,then“d”willbetheappropriateanswer.

Toanswer“a,”thelegislaturemustreceivetheExecutive’sBudgetProposalatleastthreemonthsinadvanceofthestartofthebudgetyear.Answer“b”appliesifthelegislaturereceivestheExecutive’sBudgetProposalatleasttwomonths,butlessthanthreemonths,beforethestartofthebudgetyear.Answer“c”appliesifthelegislaturereceivestheExecutive’sBudgetProposalatleastonemonth,butlessthantwomonths,beforethestartofthebudgetyear.Answer“d”appliesifthelegislaturedoesnotreceivetheExecutive’sBudgetProposalatleastonemonthpriortothestartofthebudgetyear,ordoesnotreceiveitatall.


Answer:a.ThelegislaturereceivestheExecutive’sBudgetProposalatleastthreemonthsbeforethestartofthebudgetyear.

Source:NestorCoralles,"Dutertesubmitsproposed2019budgettoCongress,"Inquirer.Net,July24,2018:https://newsinfo.inquirer.net/1013590/sona-sona-2018-rodrigo-duterte-gaa-2019-national-budget

Comment:ThelegislaturereceivedtheExecutive'sBudgetProposalonJuly23,2018,oratleastthreemonthsbeforethestartofthebudgetyear.



109.WhendoesthelegislatureapprovetheExecutive’sBudgetProposal?

GUIDELINES:Question109examineswhenthelegislatureapprovestheExecutive’sBudgetProposal.InternationalgoodpracticerecommendsthattheExecutive’sBudgetProposalshouldbeapprovedbythelegislaturebeforethestartofthefiscalyearthebudgetproposalrefersto.Thisgivestheexecutivetimetoimplementthebudgetinitsentirety,particularlynewprogramsandpolicies.

Insomecountries,theexpenditureandrevenueestimatesoftheExecutive’sBudgetProposalareapprovedseparately;forpurposesofthisquestion,atleasttheexpenditureestimatesmustbeapproved.Further,approvalofthebudgetimpliesapprovalofthefull-yearbudget,notjustashort-termcontinuationofspendingandrevenueauthority.

Toanswer“a,”thelegislaturemustapprovetheExecutive’sBudgetProposalatleastonemonthbeforethestartofthebudgetyear.Answer“b”appliesifthelegislatureapprovestheExecutive’sBudgetProposallessthanonemonthinadvanceofthestartofthebudgetyear,butatleastbythestartofthebudgetyear.Answer“c”appliesifthelegislatureapprovestheExecutive’sBudgetProposallessthanonemonthafterthestartofthebudgetyear.Answer“d”appliesifthelegislatureapprovestheExecutive’sBudgetProposalmorethanonemonthafterthestartofthebudgetyear,ordoesnotapprovethebudget.

Answer:b.Thelegislatureapprovesthebudgetlessthanonemonthinadvanceofthestartofthebudgetyear,butatleastbythestartofthebudgetyear.

Source:JocelynUy,"Congressapproves2018budget,"Inquirer.Net,December13,2017:https://newsinfo.inquirer.net/951913/congress-approves-2018-budget

“2018NationalBudgetreflectssocio-economicagendaofPresidentDuterte.”PhilippineNewsAgency,December22,2017:https://pia.gov.ph/news/articles/1003334

Comment:The2018budgetwasapprovedbyCongressonDecember11,2017andsignedintolawbyPresidentRodrigoDuterteonDecember19,2017.



110.DoesthelegislaturehavetheauthorityinlawtoamendtheExecutive’sBudgetProposal?

GUIDELINES:

Question110examinesthelegislature’spowertoamend—asopposedtosimplyacceptorreject―thebudgetproposalpresentedbytheexecutive.This

questionisaboutlegalauthorityratherthanactionsthelegislaturetakesinpractice.Thelegislature’spowerstoamendthebudgetcanvarysubstantiallyacrosscountries.

The“a”responseisappropriateonlyiftherearenorestrictionsontherightofthelegislaturetomodifytheExecutive’sBudgetProposal,includingitsrighttochangethesizeoftheproposeddeficitorsurplus.The“b”responsewouldbeappropriateif,forinstance,thelegislatureisrestrictedfromchangingthedeficitorsurplus,butitstillhasthepowertoincreaseordecreasefundingandrevenuelevels.Themorelimited“c”responsewouldapplyif,forinstance,thelegislaturecanonlyre-allocatespendingwithinthetotalssetintheExecutive’sBudgetProposalorcanonlydecreasefundinglevelsorincreaserevenues.Finally,response“d”wouldapplyifthelegislaturemaynotmakeanychanges(oronlysmalltechnicalchanges),orifamendmentsmustfirstbeapprovedbytheexecutive.Inthesecases,thelegislatureisessentiallyonlyabletoapproveorrejectthebudgetasawhole.Iftheansweris“b”or“c”,pleaseindicatethenatureoftheamendmentpowersavailabletotheParliamentandhowtheyarelimited.

Answer:c.Yes,thelegislaturehasauthorityinlawtoamendtheExecutive’sBudgetProposal,butitsauthorityisverylimited.

Source:1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/1987-constitution/

Comment:InBookVI,Chapter4ofExecutiveOrder292(InstitutingtheAdministrativeCodeof1987),theCongressshallinnocaseincreasetheappropriationofanyprojectorprogramofanydepartment,bureau,agencyorofficeoftheGovernmentovertheamountsubmittedbythePresidentinhisbudgetproposal.Thereareautomaticappropriationssuchastheprincipalandinterestonpublicdebtthatthelegislaturecannotamend.Weblink:http://www.gov.ph/1987/07/25/executive-order-no-292-s-1987/

PeerReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,thelegislaturehasauthorityinlawtoamendtheExecutive’sBudgetProposal,withsomelimitations.Comments:Thelimitationonincreasingtheoverallappropriationisrootedinthe1987Constitution,ArticleVI,Section25(1).Withinthatlimitation,CongresscanamendtheExecutiveBudgetProposalbyspecifyingwheretherearereductionstoallowspacefornewideas.

GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,thelegislaturehasauthorityinlawtoamendtheExecutive’sBudgetProposal,withsomelimitations.Comments:WenotethattheReviewerstatesthatthelegislaturehasauthorityinlawtoamendtheExecutive'sBudgetProposalwithsomelimitations.WemaintainourpositionintheExecutiveforthisitemtoberatedas"B"insteadof"C".Also,similartoourresponseinthe2015and2017OBS,wenotethattheCongresshasunlimitedpowertoamendthecontentsoftheBudget-toincreaseordecreasetheallocationsfordepartmentsorprogram,oreventoinsertordeleteprogramsandprojectsintheBudget-solongastheoverallbudgetceilingisnotbreached.Section25,ArticleVIofthe1987Constitutionprovides:"TheCongressmaynotincreasetheappropriationsrecommendedbythePresidentfortheoperationofthegovernmentasspecifiedinthebudget.Theform,content,andmannerofpreparationofthebudgetshallbeprescribedbylaw".AnyincreaseinanyitemmaynotbemadeifitwillincreasethetotalbudgetceilingsubmittedbythePresident.Forinstance,anincreaseinoneagency'sbudgetmaybeaccommodatedbyacorrespondingdecreaseinotheragencies'budget.Inthe2015OBS,theResearchercitedthatthisauthorityinlawgiventoCongresscanbemoreproperlydescribedashaving"somelimitations",meritingaratingof"B".

ResearcherResponseTherevisedansweris"b".Thelimitationonincreasingtheoverallappropriationisrootedinthe1987Constitution,ArticleVI,Section25(1).Withinthatlimitation,CongresscanamendtheExecutiveBudgetProposalbyspecifyingwheretherearereductionstoallowspacefornewideas.

IBPCommentBasedontheresponsesoftheresearcher,peerreviewerandgovernmentreviewer,itisnotedthatCongresshasthepowertoamendthecontentsofthebudget,solongasthebudgetceilingisnotexceeded.However,accordingtoOBSmethodology,thisisaclearCscore.ABscoreonlyappliesifCongresswererestrictedfromincreasingthedeficit,butastherestrictionisonincreasingtotalexpenditures(thebudgetceiling),thismustbescoredaC.Theresearcher'soriginalresponseisconfirmed.

111.Duringthemostrecentbudgetapprovalprocess,didthelegislatureuseitsauthorityinlawtoamendtheExecutive’sBudgetProposal?

GUIDELINES:Question111assesseswhetheranyformalauthorityofthelegislaturetoamendtheExecutive’sBudgetProposalisusedinpractice.TheresponsestothisquestionshouldbedeterminedbasedonactionbythelegislaturerelatedtotheEnactedBudgetusedintheOBS.Chooseanswer“a”ifthelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposalduringthemostrecentbudgetapprovalprocess,andamendmentswereadopted(all,oratleastsomeofthem).Answer“a”alsoappliesifthelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposal,buttheamendmentswererejectedbyexecutiveveto.Answer“b”appliesifthelegislatureuseditsauthorityinlawtoproposeamendmentstotheExecutive’sBudgetProposal,butnoneoftheseamendmentswereadopted.Answer“c”appliesifthelegislaturehastheauthorityinlawtoamendthebudget,butnoamendmentswereproposedduringitsconsideration.Answer“d”applieswhenthelegislaturedoesnothaveanyauthoritytoamendthebudget(thatis,Question110isanswered“d”).

Iftheansweris“a”or“b”,pleasespecifyinthecommentsthenumberofamendmentsintroducedbythelegislature(andinthecaseofan“a”response,thenumberadopted,orifapplicable,informationaboutanexecutiveveto)anddescribetheirnature.Forexample,didtheamendmentsresultinanincreaseordecreaseofthedeficit?Whatwerethemostsignificantamendmentstorevenuesandtoexpendituresintermsofthesumsinvolved?Howdidamendmentsaffectthecompositionofexpenditures?Iftheansweris“a,”pleasespecifywhichamendmentswereadopted,andprovideevidenceforit.

Answer:a.Yes,thelegislatureuseditsauthorityinlawtoamendtheExecutive’sBudgetProposal,and(atleastsomeof)itsamendmentswereadopted.

Source:JessDiaz,"CongresshikesDPWHbudgetbyP11billion,"PhilippineStar,December15,2017:https://www.philstar.com/headlines/2017/12/15/1768877/congress-hikes-dpwh-budget-p11-billion

Comment:Thefinalreportontheproposed2018nationalbudgetthattheSenateandtheHouseofRepresentativesapprovedshowsthattheDepartmentofPublicWorksandHighwaysreceivedanadditionalPHP11.1billion.TheDepartmentofEducationlostPHP2.5billion,withthetwochamberscuttingitsappropriationfromPHP555.8billiontoPHP553.3billion.



112.Duringthelastbudgetapprovalprocess,didaspecializedbudgetorfinancecommitteeinthelegislatureexaminetheExecutive’sBudgetProposal?

GUIDELINES:Question112assessestheroleofaspecializedbudgetorfinancecommitteeduringthebudgetapprovalstage.Effectivecommitteeinvolvementisanessentialconditionforlegislativeinfluenceinthebudgetprocess.Specializedcommitteesprovideopportunitiesforindividuallegislatorstogainrelevantexpertise,andtoexaminebudgetsandpolicyindepth.Yet,theinvolvementofcommitteesdiffersacrosslegislatures.Somelegislatureshaveseparatecommitteestoexaminespendingandtaxproposals,whileothershaveasinglefinancecommittee.Notalllegislatureshaveaspecializedbudgetorfinancecommitteetoexaminethebudget.Inaddition,therecanbedifferencesinthetimeavailableforthecommittee’sanalysisofthebudget.

Areportwiththecommittee’sfindingsandrecommendationsisintendedtoinformthedebateinthefulllegislature,thereforeitmustbepublishedbeforethelegislaturehasadoptedthebudget.

Response“a”requiresthat,inthelastbudgetapprovalprocess,aspecializedbudgetorfinancecommitteehadonemonthormoretoexaminetheExecutive’sBudgetProposal,anditpublishedareportwithfindingsandrecommendationspriortothebudgetbeingadopted.Response“b”applieswheresuchacommitteeexaminedthedraftbudgetandpublishedareport,butwithinashortertimeframeoflessthanonemonth.Response“c”appliesifacommitteeexaminedthebudget(withoutregardtothetimeperiod),butdidnotpublishareportpriortotheadoptionofthebudget.Response“d”applieswhereaspecializedbudgetorfinancecommitteedidnotexaminetheExecutive’sBudgetProposal.

Pleasespecifyinyourcommentthenameofthecommitteeandthenumberofdaysithadavailabletoexaminethebudgetandtopublishareport.Forbicamerallegislatureswhereonehouseorchamberhasgreaterconstitutionalauthorityinbudgetarymatters,thequestionappliestothehouseorchamber(usuallytheupperorsecondone)thatisdecisive.Forbicamerallegislatureswithco-equalhousesorchambers,thequestionshouldbeansweredwithreferencetotheonethatachievesthehigherscoreforthisquestion.Inthecaseofbicamerallegislatures,pleasenotetherelevantarrangementsineachhouseorchamber.Ifapplicable,provideacopyofthereport.Pleasenotealsoifareportispublished,butonlyafterthebudgethasbeenadopted.

Answer:a.Yes,aspecializedbudgetorfinancecommitteehadatleastonemonthtoexaminetheExecutive’sBudgetProposal,anditpublishedareportwithfindingsandrecommendationspriortothebudgetbeingadopted.

Source:DepartmentofFinance,"HouseappropriationspanelendorsesP18.68-BDOFbudgetforcongressionalapproval,"September21,2018:https://www.dof.gov.ph/index.php/house-appropriations-panel-endorses-p18-68-b-dof-budget-for-congressional-approval/

JoseCielitoReganit,"Senatestartsplenarydeliberationsonproposed2019budget,"PhilippineNewsAgency:https://www.pna.gov.ph/articles/1055734

Comment:TheCommitteeonAppropriationsoftheHouseofRepresentativesformallyendorsedforcongressionalapprovalonSeptember20,2018theproposedP18.68-billionbudgetoftheDepartmentofFinance(DOF)underthenewcash-basedsysteminwhichtheimplementationofprojectsandtheprocurementofgoodsandservicesaredonewithinthegivenfiscalyear.

SenatorLorenLegarda,thechairoftheCommitteeonFinance,presentedCommitteeReportNo.538,containingtheamendmentstothe2019

GeneralAppropriationsBillapprovedbytheHouseofRepresentatives,inplenaryonDecember4,2018



113.Duringthelastapprovalprocess,didlegislativecommittees,responsibleforparticularsectors(e.g.,health,education,defense,etc.),examinespendingintheExecutive’sBudgetProposalrelatedtothesectorforwhichtheyareresponsible?

GUIDELINES:Question113assessestheroleofcommitteesofthelegislaturethatareresponsibleforparticularsectors(e.g.,health,education,defense,etc.)duringthebudgetapprovalstage.Theroleofsectoralcommitteesdiffersacrosslegislatures.Somelegislaturesdonotinvolvetheminthebudgetapprovalprocess,whileothersdo.Inaddition,thetimeavailableforcommitteeanalysisdiffers.

Areportwiththecommittee’sfindingsandrecommendationsisintendedtoinformthedebateinthefulllegislature,sothereforemustbepublishedbeforethelegislaturehasadoptedthebudget.Response“a”requiresthatsectorcommitteeshadonemonthormoretoexaminetheExecutive’sBudgetProposal,andpublishedareportwithfindingsandrecommendationspriorthebudgetbeingadopted.Response“b””applieswheresuchcommitteesexaminedthedraftbudgetandpublishedareport,butwithinashortertimeframeoflessthanonemonth.Response“c”appliesifsectoralcommitteesexaminedthebudget(withoutregardtothetimeperiod),butdidnotpublishareportpriortotheadoptionofthebudget.Response“d”applieswheresectoralcommitteesdidnotexaminetheExecutive’sBudgetProposal.

Pleaseprovideinthecommentsabriefoverviewofthecommitteestructureandspecifythenumberofdaysthatsectoralcommitteeshadavailabletoexaminethebudgetandtopublishtheirreports.Forbicamerallegislatureswhereonehouseorchamberhasgreaterconstitutionalauthorityinbudgetarymatters,thequestionappliestothehouseorchamber(usuallytheupperorsecondone)thatisdecisive.Forbicamerallegislatureswithco-equalhousesorchambers,thequestionshouldbeansweredwithreferencetotheonethatachievesthehigherscoreforthisquestion.Inthecaseofbicamerallegislatures,pleasenotetherelevantarrangementsineachhouseorchamber.Ifapplicable,provideasamplecopyofatleastoneofthereports.Pleasenoteifareportispublished,butonlyafterthebudgethasbeenadopted.

Forpurposesofrespondingtothisquestion,usethosesectoralcommitteesthatarebestperforming–thatis,theonesthatexaminethebudgetthelongestandthatpublishreports.

Answer:c.Yes,sectorcommitteesexaminedtheExecutive’sBudgetProposal,buttheydidnotpublishreportswithfindingsandrecommendationspriortothebudgetbeingadopted.

Source:RuleX,Section13(4),SenateofthePhilippines:https://www.senate.gov.ph/committee/duties.asp17thCongress

SenateCommitteeReportNo.167ontheGeneralAppropriationsActFY2018,17thCongress,October4,2017:https://www.senate.gov.ph/lis/committee_rpt.aspx?congress=17&q=167

Comment:TheCommitteeonAppropriationsoftheHouseofRepresentativestogetherwiththeotherHousesub-committeesexaminetheExecutive'sBudgetProposal.Similarly,theSenateFinanceCommitteeanditssub-committeesconductitsownreviewandassessmentofthebudget.Sectorcommitteesexaminethebudgetbuttheydidnotpublishreportswithfindings.

TheSenateFinancesubcommitteeAwasscheduledonAugust29,2018toheartheproposedbudgetoftheDepartmentofForeignAffairsanditsattachedagencies,whilesubcommitteeFwillscrutinizetheappropriationsfortheCivilServiceCommission,CareerExecutiveServiceBoard,NationalYouthCommission,CooperativeDevelopmentAuthority,BasesConversionDevelopmentAuthority,SubicBayMetropolitanAuthorityandMovieandTelevisionReviewandClassificationBoard.

PaoloRomero,"Senateresumesbudgethearings,"PhilippineStar,August28,2018:https://www.philstar.com/headlines/2018/08/28/1846449/senate-resumes-budget-hearings



114.Inthepast12months,didacommitteeofthelegislatureexaminein-yearimplementationoftheEnactedBudgetduringtherelevantbudgetexecutionperiod?

GUIDELINES:Question114isaboutlegislativeoversightofbudgetexecution.Itassesseswhetherandhowoftenacommitteeexaminedtheimplementationofthebudgetduringthebudgetexecutionperiod(i.e.,financialyear)forwhichitwasapproved,andwhetherthisresultedinanofficialreportwithfindingsandrecommendations.Thisquestiondoesnotapplytotheexpostreviewofimplementationfollowingtheendofthebudgetyearaspartoftheauditstage,whichisassessedseparately.Nordoesitapplytothelegislature’sreviewofthebudgetthatitmayundertakeaspartoftheprocessofconsideringasupplementalbudgetduringtheyear.In-yearmonitoringbythelegislaturewillbeaffectedbythefrequencythattheexecutivepublishesIn-YearReports.

Toanswer“a,”acommitteemusthaveexaminedin-yearimplementationoftheEnactedBudgetatleastthreetimesduringthecourseoftherelevantbudgetyearandpublishedreportswithfindingsandrecommendations.Answer“b”applieswherethisoccurredonlyonceortwiceduringtheyear.

Exception:Ifalegislatureisinsessiononlytwiceduringtheyear,anditexaminestheimplementationofthebudgetduringbothsessions,thenitwouldbeeligibleforan“a”response.

Choose“c”ifacommitteeexaminedin-yearimplementation(withoutregardtofrequency),butdidnotpublishanyreportwithfindingsandrecommendations.Answer“d”applieswherenocommitteeexaminedin-yearimplementation.

Iftheansweris“a”or“b,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation,andprovideacopyofitsreport(s).Iftheansweris“c,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation.

Forpurposesofrespondingtothisquestion,ifmorethanonecommitteeholdsin-yearreviewsofthebudget,usethecommitteethatisbestperforming–thatis,theonethatexaminesin-yearimplementationthemosttimesandthatpublishesareport.

Answer:c.Yes,acommitteeexaminedin-yearimplementation,butitdidnotpublishanyreportwithfindingsandrecommendations.

Source:CommitteeDailyBulletin,Vol.II,No.110,17thCongress,ThirdRegularSession,May22,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i110-20180522.pdf

CommitteeDailyBulletin,Vol.II,No.127,17thCongress,ThirdRegularSession,July2,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i127-20180702.pdf

Comment:TheJointCongressionalOversightCommitteeexaminedthein-yearimplementationoftheNationalHealthInsuranceProgramonMay22,2018.TheCommitteeonHealthoftheHouseofRepresentativesalsoexaminedthein-yearimplementationoftheNationalHealthInsuranceProgramonJuly2,2018.However,nofindingswithreportsandrecommendationswerepublished.



115.DoestheexecutiveseekapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunitsthatreceiveexplicitfundingintheEnactedBudget,andisitlegallyrequiredtodoso?

GUIDELINES:Question115examineswhethertheexecutiveseeksapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunits,andwhetheritislegallyrequiredtodoso.

Insomecountries,theexecutivehasthepowerinlawtoadjustfundinglevelsforspecificappropriationsduringtheexecutionofthebudget.Thisquestionexaminesrulesaroundshiftingfundsbetweenadministrativeunits(ministries,departments,oragencies)orwhateverfundingunit(or“vote”)isspecifiedintheEnactedBudget.

Theconditionsunderwhichtheexecutivemayexerciseitsdiscretiontoshiftfundsshouldbeclearlydefinedinpubliclyavailableregulationsorlaw.Inaddition,theamountoffundsthattheexecutiveisallowedtotransferbetweenadministrativeunitsshouldnotbesoexcessiveastounderminetheaccountabilityoftheexecutivetothelegislature.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforeshiftingfundsbetweenadministrativeunits,anditdoessoinpractice.Answer“b”appliesiftheexecutiveobtainslegislativeapprovalbeforeshiftingfundsbetweenadministrativeunits,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoreceivelegislativeapprovalbeforeshiftingfunds,butdoesnotdosoinpractice.Answer“d”appliesiflegislativeapprovalisnotlegallyrequiredfortheexecutivetoshiftfundsbetweenadministrativeunitsandtheexecutivedoesnotobtainlegislativeapprovalinpractice.Answer“d”alsoappliesiftheexecutiveisauthorizedtoshiftanamountconsideredsoexcessiveastoundermineaccountability(roughlyequalto3percentoftotalbudgetedexpenditures).A“d”responseappliesifthelegislatureonlyapprovestheshiftingoffundsafterithasalreadyoccurred.

Inthecomments,pleaseindicateanylaworregulationthatprovidestheexecutivewithstandingauthoritytoshiftfundsbetweenadministrativeunitsand,ifso,describethatauthority.Similarly,legislativeapprovalforshiftingfundsbetweenadministrativeunitstypicallyoccurswiththeadoptionoflegislationsuchasasupplementalbudget.Butifotherformalproceduresforgainingapprovalfromthelegislatureexist,thenpleaseprovideinformationaboutthatapprovalprocess.

Answer:a.Theexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunits,anditdoessoinpractice.

Source:Section39,BookVI/Chapter5(BudgetExecution),AdministrativeCodeof1987:http://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-book-vichapter-5-budget-execution/

Comment:Theexecutiveislegallyrequiredtoreceivelegislativeapprovalbeforeshiftingfunds,butdoesnotdosoinpractice.UnderSection39,BookVI/Chapter5(BudgetExecution)oftheAdministrativeCodeof1987,anysavingsintheregularappropriationsauthorizedintheGeneralAppropriationsActforprogramsandprojectsofanydepartment,officeoragencymay,withtheapprovalofthePresident,beusedtocoveradeficitinanyotheritemoftheregularappropriations:providedthatthecreationofnewpositionsorincreaseofsalariesshallnotbeallowedtobefundedfrombudgetarysavingsexceptwhenspecificallyauthorizedbylaw.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Theexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortoshiftingfundsbetweenadministrativeunits,anditdoessoinpractice.Comments:Thecommentoftheresearcherexplicitlystatesthatthe"executiveislegallyrequiredtoreceivelegislativeapprovalbeforeshiftingfunds".Inaddition,theexecutiveseekstheapprovaloflegislaturepriortoshiftingoffundsthroughtheGeneralProvisionsintheExecutive'sBudgetProposal.Insections66-70oftheGeneralProvisionsoftheFY2019NationalExpenditureProgram(pages1156-1157),theexecutiveproposestothelegislaturetheguidelinesregardingshiftingoffunds(i.e.,authoritytousesavings,meaningofsavings,rulesonaugmentation,priorityintheuseofsavings,andrulesonmodificationintheallotment).Weblink:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/GenPro.pdfTheaboveproposalbytheexecutiveisauthorizedbythelegislatureandisenshrinedinsections73-76oftheGeneralProvisionsoftheEnactedBudgetortheFY2019GeneralAppropriationsAct(pages942-943).ThroughtheseGeneralProvisions,Congressgavepriorapprovaltotheexecutiveregardingshiftingoffunds.Weblink:https://www.dbm.gov.ph/wp-content/uploads/NEP%202019/GenPro.pdf

ResearcherResponseIproposetorevisetheratingfrom"d"to"b"basedonthecitationmadebytheGovernmentReviewer.

IBPCommentBasedontheresponsesoftheresearcher,peerreviewer,andgovernment,theresponseisrevisedfromDtoA.TheGeneralProvisionsoftheFY2019NationalExpenditureProgram(pages1156)Sec.66explaintherulesthatapplytotheuseofsavingswithinappropriations.TherulesstatethatthePresident,PresidentoftheSenate,SpeakeroftheHouseofRepresentatives,ChiefJustice,HeadsoftheCivilServiceCommission,theCommissiononElectionsandtheCOAare"authorizedtodeclareandusesavingsintheirrespectiveappropriationstoaugmentactualdeficienciesincurredforthecurrentyearinanyitemoftheirrespectiveappropriations."Thisauthorizesshiftswithinanadministrativeheadappropriation,however,itdoesnotauthorizetheshiftingoffundsbetweenappropriations.ThisisconfirmedinSec.68thatexplainstheuseofsavingsonlycanbeappliedto"anyexistingitemofappropriationwithintheirrespectiveoffices."Furthermore,theGeneralProvisionsonpage1154dorestrictthegovernmentfrommovingfundsbetweenunits:"Aftertheendofvalidityperiod,anyunreleasedappropriationsaswellasunexpendedorundispersedfundsshallreverttotheunapproriatedsurplusoftheGeneralFundinaccordancewithSection28,Chapter3,BookIVofE.O.No.292andshallnotthereafterbeavailableforexpenditureexceptbysubsequentlegislativeenactment."AstheshiftingoffundsisalsoapprovedduringtheSupplementalBudget,thisshowsthatapprovalhappensinpractice.Inthiscase,theappropriatescoreisA.

116.Doestheexecutiveseekapprovalfromthelegislaturepriortospendingexcessrevenue(thatis,amountshigherthanoriginallyanticipated)thatmaybecomeavailableduringthebudgetexecutionperiod,andisitlegallyrequiredtodoso?

GUIDELINES:Question116examineswhethertheexecutivereceivesapprovalfromthelegislaturepriortospendingexcessrevenue,andwhetheritislegallyrequiredtodoso.GoodpracticerequiresthelegislaturetoapprovechangesinrevenueorexpenditurerelativetotheEnactedBudget.Forexample,ifadditionalrevenueis

collectedunexpectedlyduringtheyear,whichoftenhappensinoil/mineral-dependentcountries,anditwasnotaccountedforintheEnactedBudget,thereshouldbeaprocedureinplacetoensurethatthelegislatureapprovesanyproposeduseofthese“new”funds.Ifsuchrequirementsarenotinplace,theexecutivemightdeliberatelyunderestimaterevenueinthebudgetproposalitsubmitstothelegislature,inordertohaveadditionalresourcestospendattheexecutive’sdiscretion,withnolegislativecontrol.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforespendinganyfundsresultingfromhigher-than-expectedrevenues,anditdoessoinpractice.Answer“b”appliesiftheexecutiveobtainslegislativeapprovalbeforespendingexcessrevenue,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoreceivelegislativeapprovalbeforespendingexcessrevenue,butdoesnotdosoinpractice.Answer“d”appliesifpriorlegislativeapprovalisnotlegallyrequiredfortheexecutivetospendexcessrevenueandtheexecutivedoesnotobtainlegislativeapprovalinpractice.A“d”responseappliesifthelegislatureonlyapprovestheadditionalspendingafterithasalreadyoccurred.

Typically,legislativeapprovalofadditionalspendingbeyondwhatwasreflectedintheEnactedBudgetwouldoccurwiththeadoptionofasupplementalbudget.Butotherformalproceduresforgettingapprovalfromthelegislatureinadvanceofitadoptingthesupplementalbudgetmayexist.Ifthatisthecase,thenpleaseprovideinformationaboutthatapprovalprocess.

Answer:aTheexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortospendingexcessrevenues,anditdoessoinpractice.

Source:GeneralAppropriationsActFY2018:https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/UF.pdf

Comment:Theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforespendinganyfundsresultingfromhigher-than-expectedrevenues,anditdoessoinpractice.TheGeneralAppropriationsActcontainedallocationsfortheUnprogrammedFund(UF)orstandbyappropriationsapprovedbyCongressfortheuseofwindfallrevenues,suchasrevenuesinexcessoftargets,newrevenuemeasuresandnewloanagreements.ThroughtheUF,Congressgavepriorapprovaltotheexecutivefortheuseofexcessrevenues.



117.DoestheexecutiveseekapprovalfromthelegislaturepriortoreducingspendingbelowthelevelsintheEnactedBudgetinresponsetorevenueshortfalls(thatis,revenueslowerthanoriginallyanticipated)orotherreasonsduringthebudgetexecutionperiod,andisitlegallyrequiredtodoso?

GUIDELINES:Question117examineswhethertheexecutivereceivesapprovalfromthelegislaturepriortocuttingspendingbelowthelevelsintheEnactedBudgetinresponsetorevenueshortfallsorforanyotherreason,andwhetheritislegallyrequiredtodoso.GoodpracticerequiresthelegislaturetoapprovechangesinrevenueorexpenditurerelativetotheEnactedBudget.Forexample,iflessrevenueiscollectedunexpectedlyduringtheyear,thelegislatureshouldapproveorrejectanyproposedreductionsinexpendituresthatareimplementedasaresult.Ifsuchrequirementsarenotinplace,theexecutivemightsubstantiallychangethecompositionofthebudgetattheexecutive’sdiscretion,withnolegislativecontrol.

Typically,legislativeapprovalofproposalstoreducespendingbelowthelevelsreflectedintheEnactedBudgetwouldoccuraspartofthesupplementalbudget.Butotherformalproceduresforgettingapprovalfromthelegislatureinadvanceofitadoptingthesupplementalbudgetmayexist.Ifthatisthecase,thenpleaseprovideinformationaboutthatapprovalprocess.

Toanswer“a,”theexecutiveisrequiredbylaworregulationtoobtainpriorlegislativeapprovalbeforeimplementingspendingcutsinresponsetorevenueshortfallsorforotherreasons,anditdoessoinpractice.Answer“b”appliesiftheexecutivereceivedlegislativeapprovalbeforeimplementingsuchcuts,butisnotlegallyrequiredtodoso.Answer“c”appliesiftheexecutiveislegallyrequiredtoobtainlegislativeapprovalbeforeimplementingsuchcuts,butdoesnotdosoinpractice.Answer“d”appliesiflegislativeapprovalisnotlegallyrequiredfortheexecutivetoimplementsuchcutsandtheexecutivedoesnotobtainsuchapprovalinpractice.A“d”responseappliesifthelegislatureonlyapprovesthespendingcutsaftertheyhavealreadyoccurred.

Answer:a.Theexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortoreducingspendingbelowtheenactedlevelsinresponsetorevenueshortfallsorotherreasons,anditdoessoinpractice.

Source:Section27,BookVI/Chapter4(BudgetAuthorization),AdministrativeCodeof1987:https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-book-vichapter-4-budget-authorization/

Comment:Theexecutivereceivedlegislativeapprovalbeforeimplementingspendingcuts,butisnotlegallyrequiredtodoso.LegislativeapprovalofproposalstoreducespendingreflectedintheEnactedBudgetisusuallypartoftheSupplementalBudget.Section27,BookVI/Chapter4(Budget

Authorization)oftheAdministrativeCodeof1987statesthat“allappropriationproposalsshallbeincludedandconsideredinthebudgetpreparationprocess.AfterthePresidentshallhavesubmittedtheBudget,nosupplementalappropriationmeasuresupportedfromexistingrevenuemeasuresshallbepassedbytheCongress.However,supplementalordeficiencyappropriationsinvolvingthecreationofnewoffices,programsoractivitiesmaybeenactedifaccompaniedandsupportedbynewrevenuesources.”


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Theexecutiveisrequiredbylaworregulationtoobtainapprovalfromthelegislaturepriortoreducingspendingbelowtheenactedlevelsinresponsetorevenueshortfallsorotherreasons,anditdoessoinpractice.Comments:Section63oftheGeneralProvisionsoftheFY2018GeneralAppropriationsAct(page633)requirestheexecutivetoobtainapprovalfromthelegislatureregardingtherescissionofappropriationsincaseofan"unmanageableNationalGovernmentdeficit",amongothers.UnmanageableNationalGovernmentdeficitisdefinedas:"(i)theactualNationalGovernmentbudgetdeficithasexceededthequarterlybudgetdeficittargetsconsistentwiththefullyeartargetdeficitasindicatedintheBESFsubmittedbythePresidenttoCongresspursuanttoSection22,ArticleVIIoftheConstitution;or(ii)therearecleareconomicindicationsofanimpendingoccurrenceofsuchcondition,asdeterminedbytheDBCCandapprovedbythePresident".Weblink:https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GENPRO.pdf

ResearcherResponseTherevisedansweris"a".Section63oftheGeneralProvisionsoftheFY2018GeneralAppropriationsAct(page633)requirestheexecutivetoobtainapprovalfromthelegislatureregardingtherescissionofappropriationsincaseofan"unmanageableNationalGovernmentdeficit",amongothers.

118.DidacommitteeofthelegislatureexaminetheAuditReportontheannualbudgetproducedbytheSupremeAuditInstitution(SAI)?

GUIDELINES:Question118isaboutexpostoversightfollowingtheimplementationofthebudget.ItprobeswhetheracommitteeexaminedtheAuditReportontheannualbudgetproducedbytheSupremeAuditInstitution(SAI),andwhetherthisresultedinanofficialreportwithfindingsandrecommendations.AkeyissueishowsoonaftertheSAIreleasesthereportdoesitlegislaturereviewit.Thisquestiondoesnotapplytothelegislativescrutinyofin-yearimplementationoftheEnactedBudgetduringtherelevantbudgetexecutionperiod,whichisassessedseparately.Also,thequestionisaskingspecificallyabouttheSAI’sannualreportontheexecutionofthebudget,notaboutotherauditreportsthattheSAImayproduce.(ThisistheAuditReportusedforrespondingtoQuestion98.)

Toanswer“a,”alegislativecommitteemusthaveexaminedtheannualAuditReportwithinthreemonthsofitbeingreleasedbytheSAI,andthenpublishedareport(orreports)withfindingsandrecommendations.(Notethatthethree-monthperiodshouldonlytakeintoaccounttimewhenthelegislatureisinsession.)

Answer“b”applieswhenthecommitteeexaminesitwithinsixmonthsofitbeingreleased(butmorethanthreemonths),andthenpublishedareportwithitsfindingsandrecommendations.Choose“c”ifacommitteeexaminedtheannualAuditReportmorethansixmonthsafteritbecameavailableoritdidnotpublishanyreportwithfindingsandrecommendations.Answer“d”applieswherenocommitteeexaminedtheannualAuditReport.

Iftheansweris“a”or“b,”pleasespecifythenameofthecommitteeandwhenitreviewedtheAuditReport,andprovideacopyofitsreport(s).Iftheansweris“c,”pleasespecifythenameofthecommitteeandwhenitreviewedbudgetimplementation.Answers“a,”“b,”or“c”maybeselectediftheAuditReportisproducedbytheSAIbutnotmadepubliclyavailable.

Answer:c.Yes,acommitteeexaminedtheAuditReportontheannualbudget,butitdidsoafterthereporthadbeenavailableformorethansixmonthsoritdidnotpublishanyreportwithfindingsandrecommendations.

Source:Section101(GeneralProvisions),GeneralAppropriationsActFY2018,OfficialGazette,Vol.113,No.1,p.640:https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GENPRO.pdf

Comment:Section101undertheGeneralProvisionsoftheGeneralAppropriationsActof2018providesthat"theSenateandtheHouseofRepresentativesshallconstituteaJointCongressionalOversightCommitteeonPublicExpenditureswhichshallprimarilymonitorcompliancebyagencieswiththerequirementsand/orconditionsintheutilizationofpublicfundsunderthisActandpertinentlaws."However,thereisnopressreleaseconfirmingthattheCommitteewasestablishedtoexaminetheauditreport.


GovernmentReviewerOpinion:Disagree

SuggestedAnswer:c.Yes,acommitteeexaminedtheAuditReportontheannualbudget,butitdidsoafterthereporthadbeenavailableformorethansixmonthsoritdidnotpublishanyreportwithfindingsandrecommendations.Comments:Itisrecommendedtochangetheratingofthisitemfrom"D"toC.TherehavebeenseveralinstanceswhentheCongressexaminedandusedasbasistheCommissiononAuditreportsonanagency'sannualbudget,whereseveralgovernmentofficialsfromagenciessuchasPhilippineCharitySweepstakesOffice,DepartmentofHealth,PhilHealth,DepartmentofTourism,amongothers,becamesubjectofcongressionalinvestigationsandcalledtoattendcongressionalhearings.Therespectiveagencyauditorsarealsorequestedtoattendthesaidhearings.Pleasecheckthefollowingmediareportsandpressreleasessupportingthisjustification:https://cnnphilippines.com/news/2018/07/13/COA-PCSO-charity-fund.htmlhttps://www.senate.gov.ph/press_release/2018/0731_gordon1.asphttps://www.rappler.com/nation/201291-ben-tulfo-bitag-media-cornered-millions-advertisements-dot-2017-coa+G17https://www.senate.gov.ph/photo_release/2018/0814_01.asphttps://www.rappler.com/nation/209491-senate-hearing-tulfo-ad-placements-ptv-august-2018

ResearcherResponseIchangemyanswerfrom"d"to"c"afterreviewingthemediareportssuggestedbytheGovernmentReviewer.

IBPCommentAsthesemediareportsdoshowthatauditreportsofthefinancialaccountsofspecificagencieswerereviewedbyCongress,thescoreofCisconfirmed.

119.Wastheprocessofappointing(orre-appointing)thecurrentheadoftheSAIcarriedoutinawaythatensureshisorherindependence?

GUIDELINES:Question119concernstheappointmentprocessofthecurrentheadoftheSupremeAuditInstitution(SAI).Appointmentproceduresvarygreatlyacrosscountries,aswellasacrossdifferenttypesofSAIs.Moreover,conventionsandinformalpracticescangreatlyaffectthedefactoindependenceoftheheadoftheSAI.WhilethesefactorsmakeitdifficulttodeviseasinglemetricagainstwhichallSAIscanbeassessedwithregardtothisparticularaspect,thisquestionfocusesonwhetherthelegislatureorjudiciarymustappointorapprovetheappointmentoftheheadoftheSAIasawaytoensuretheSAI’sindependencefromtheexecutive.However,iftheappointmentiscarriedoutinanotherwaythatnonethelessensurestheindependenceoftheSAIhead,thenthatapproachcouldbealsoconsidered.

Toanswer“a,”thelegislatureorjudiciarymustappoint(orre-appoint)theheadoftheSAI,orapprovetherecommendationoftheexecutive,asawaythatensurehisorherindependencefromtheexecutive.(Asnotedabove,alternativeapproachesmayalsobeacceptable.)Choose“b”iftheappointmentprocessdoesnotensuretheindependenceoftheheadoftheSAI,e.g.theexecutivemayappointtheheadoftheSAIwithoutthefinalconsentofthelegislatureorjudiciary.

Irrespectiveofwhichansweryouselected,provideadescriptionofhowtheheadoftheSAIisappointed.

Answer:a.Yes,theheadoftheSAImayonlybeappointedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforetheappointmenttakeseffect.

Source:Section1(2),ArticleIX,1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/1987-constitution/

Comment:ThelegislaturegivesfinalconsentbeforetheappointmentoftheSAIheadtakeseffect.Section1(2),ArticleIXofthe1987PhilippineConstitutionnotesthattheCommissiononAudit(COA)ChairpersonandtheCommissionersshallbeappointedbythePresidentbutrequirestheconfirmationoftheCommissiononAppointmentsofCongressforatermofsevenyearswithoutreappointment.



120.Mustabranchofgovernmentotherthantheexecutive(suchasthelegislatureorthejudiciary)givefinalconsentbeforetheheadoftheSupremeAuditInstitution(SAI)canberemovedfromoffice?

GUIDELINES:

Question120coversthemannerinwhichtheheadorseniormembersoftheSAImayberemovedfromoffice.ThisquestiondrawsonbestpracticesidentifiedintheLimaDeclarationofGuidelinesonAuditingPrecepts(http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf),includingmeasures

http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf

intendedtoguaranteetheoffice’sindependencefromtheexecutive.

Toanswer“a,”theheadoftheSAImayonlyberemovedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforetheheadoftheSAIisremoved.Forexample,thelegislatureorjudiciarymaygivefinalconsentfollowingacertainexternalprocess,suchasacriminalproceeding.Sowhiletheexecutivemayinitiateacriminalproceeding,thefinalconsentofamemberofthejudiciary—orajudge—isnecessarytorenderaverdictofwrongdoingthatmayleadtotheremovalfromofficeoftheheadoftheSAI.Answer“b”appliesiftheexecutivemayremovetheheadoftheSAIwithoutthefinalconsentofthejudiciaryorlegislature.

Answer:a.Yes,theheadoftheSAImayonlyberemovedbythelegislatureorjudiciary,orthelegislatureorjudiciarymustgivefinalconsentbeforeheorsheisremoved.

Source:ArticleXI,1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/1987-constitution/

Comment:Section2,ArticleXIofthe1987PhilippineConstitutionprovidesthattheheadoftheSAImayonlyberemovedbythelegislaturethroughimpeachmentproceedings.Section3,ArticleXIoftheConstitutionfurtherindicatesthattheHouseofRepresentativesshallhavetheexclusivepowertoinitiateallcasesofimpeachmentwhiletheSenateshallhavethesolepowertotryanddecideallcasesofimpeachment.



121.WhodeterminesthebudgetoftheSupremeAuditInstitution(SAI)?

GUIDELINES:

Question121askswhodeterminesthebudgetoftheSupremeAuditInstitution(SAI).Toensureobjectiveauditsofgovernmentbudgets,anotherimportantcomponentoftheSAI’sindependencefromtheexecutiveistheextenttowhichtheSAI’sbudgetisdeterminedbyabodyotherthantheexecutive,andwhethertheSAIhasadequateresourcestofulfillitsmandate.

Answer“a”appliesifthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate,ANDeithertheSAIdeterminesitsownbudgetandthensubmitsittotheexecutive(whichacceptsitwithlittleornochange)ordirectlytothelegislature,orthebudgetoftheSAIisdetermineddirectlybythelegislatureorjudiciary(orsomeindependentbody).Answer“b”appliesiftheSAI’sbudgetisdeterminedbytheexecutive(absentarecommendationfromtheSAI),andthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.Answer“c”appliesifthelegislatureorjudiciary(orsomeindependentbody)determinestheSAI’sbudget,butthefundinglevelisnotconsistentwiththeresourcestheSAIneedstofulfillitsmandate.Answer“d”appliesiftheexecutivedeterminestheSAI’sbudget,andthefundinglevelisnotconsistentwiththeresourcestheSAIneedstofulfillitsmandate.PleaseprovideevidenceinsupportoftheassessmentthatthefundinglevelisorisnotbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.

Answer:a.TheSAIdeterminesitsownbudget(i.e.,submitsittotheexecutive,whichacceptsitwithlittleornochange,ordirectlytothelegislature),orthebudgetoftheSAIisdeterminedbythelegislatureorjudiciary(orsomeindependentbody),andthefundinglevelisbroadlyconsistentwiththeresourcestheSAIneedstofulfillitsmandate.

Source:Section5,ArticleIX,1987PhilippineConstitution:https://www.officialgazette.gov.ph/constitutions/1987-constitution/

Section11,BookVI/Chapter3(BudgetExecution),AdministrativeCodeof1987:http://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-book-vichapter-3-budget-preparation/

Comment:ItisstatedinSection5,ArticleIXofthe1987PhilippineConstitutionthatConstitutionalCommissions,includingtheSAI,shallenjoyfiscalautonomy.Theirapprovedannualappropriationsshallbeautomaticallyandregularlyreleased.InSection11,BookVI/Chapter3(BudgetPreparation),oftheAdministrativeCodeof1987,thePresidentshallincludeinthebudgetsubmissiontothelegislaturetheproposedexpenditureleveloftheConstitutionalBodies.



122.DoestheSupremeAuditInstitution(SAI)havethediscretioninlawtoundertakethoseauditsitmaywishto?

GUIDELINES:Question122exploresthescopeoftheinvestigativepowersoftheSupremeAuditInstitution(SAI)asprescribedinlaw.

Question97askswhichofthethreetypesofaudits—financial,compliance,andperformance—theSAIconducts.ThisquestionasksiftheSAIisconstrainedbylaw(ratherthanbyalackofcapacityoraninadequatebudget)fromundertakinganyformofauditorinvestigatingirregularitiesinanyprogramoractivity.

Therearenumerousexamplesoflimitations.Forinstance,someSAIsarenotpermittedbytheirlegalmandatetoauditjointventuresorotherpublic-privatearrangements.Othersareonlyallowedtoundertakefinancialaudits,precludedfromconductingperformanceorvalue-for-moneyaudits.TheSAIsinsomecountriesdonothavethelegalmandatetoreviewarrangementsinvolvingoilorstabilizationfunds,orothertypesofspecialorextra-budgetaryfunds.TheSAImayalsonothavetheabilitytoauditcommercialprojectsinvolvingthepublicandprivatesector.

Toanswer“a,”theSAImusthavefulldiscretioninlawtodecidewhichauditstoundertake.Answer“b”appliesifsomelimitationsexist,buttheSAIenjoyssignificantdiscretiontoundertakethoseauditsitwishesto.Answer“c”appliesiftheSAIhassomediscretion,butsignificantlegallimitationsexist.Answer“d”appliesiftheSAIhasnopoweratalltochoosewhichauditstoundertake

ConsultingtheLimaDeclarationofGuidelinesonAuditingPrecepts(http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf)maybeusefulinansweringthisquestionasitsprovisionsservetodefinetheappropriatescopeofaSAI’slegalmandateandjurisdiction.

Answer:a.TheSAIhasfulldiscretiontodecidewhichauditsitwishestoundertake.

Source:CommissiononAudit,2009RevisedRulesofProcedure:https://www.lawphil.net/administ/coa/coa.html

Comment:Underits2009RevisedRulesofProcedure,theCommissiononAuditshallhaveexclusiveauthoritysubjecttothelimitationsinArticleIXofthe1987PhilippineConstitution,todefinethescopeofitsauditandexamination,establishthetechniquesandmethodsrequired,andpromulgateaccountingandauditingrulesandregulationsincludingthoseforthepreventionanddisallowanceofirregular,unnecessary,excessive,extravagant,orunconscionableexpenditures,orusesofgovernmentfundsandproperties.



123.AretheauditprocessesoftheSupremeAuditInstitution(SAI)reviewedbyanindependentagency?

GUIDELINES:Question123assesseswhetherandtowhatextenttheauditprocessesoftheSupremeAuditInstitution(SAI)aresubjecttoreviewbyanindependentagency.ThelattercouldbeapeerSAI,aninternationalorganization,anacademicinstitutionwithrelevantexpertise,oranindependentdomesticagencywithqualityassurancefunctionsintheareaoffinancialreporting.

Toanswer“a,”anindependentagencymustconductandpublishareviewoftheauditprocessesoftheSAIonanannualbasis.Answer“b”appliesifareviewwascarriedoutwithinthepastfiveyears,andpublished,butitisnotconductedannually,but.Chooseanswer“c”iftheSAIhasaninternalunitthatreviewstheauditprocessesoftheSAIonaregularbasis,butanindependentagencydoesnotconductsuchareview.Answer“d”appliesiftheauditprocessesoftheSAIarereviewedneitherbyanindependentagencynorbyaunitwithintheSAI.

Iftheansweriseither“a”or“b,”pleasespecifythenameoftheindependentagencyandwhenlastitconductedsuchareview,andprovideacopyofthepublishedreport.Iftheansweris“c,”pleasespecifythenameoftheunitwithintheSAIthatistaskedwithconductingsuchreviews.

Answer:c.No,butaunitwithintheSAIconductsareviewoftheauditprocessesoftheSAIonaregularbasis.

http://internationalbudget.org/wp-content/uploads/LimaDeclaration.pdf

Source:Section7(8),Chapter3,BookV(TitleI/SubtitleB):https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-s-1987/

Comment:Section7(8),Chapter3,BookV(TitleI/SubtitleB)oftheRevisedAdministrativeCodeof1987indicatesthattheNationalGovernmentAuditOfficesIandIIintheSAIshallreviewauditreportscoveringagenciesofthenationalgovernmentunderitsauditjurisdiction.However,theauditreportsofCOAarereviewedneitherbyanindependentagencynorbyaunitwithintheagency.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:c.No,butaunitwithintheSAIconductsareviewoftheauditprocessesoftheSAIonaregularbasis.Comments:TheQualityAssuranceOfficeoftheCOAreviewstheauditprocessesoftheSAICOAonaregularbasis.Likewise,theAssistantCommissioners'Group,thepolicyreviewgroup,actsonissuesinvolvingauditprocessess.ThereviewoftheauditprocessisguidedbytheCOAQualityManagementSystemManual.Source:https://www.coa.gov.ph/phocadownload/userupload/transparency/COA_QMS_Manual.pdfTheCOAsubscribestotheinternationalstandardsonauditingsetbytheInternationalOrganisationofSupremeAuditInstitutions(INTOSAI)whichispublishedinthefollowinglink:http://www.intosai.org/issai-executive-summaries/4-auditing-guidelines/general-auditing-guidelines.html

ResearcherResponseTheQualityAssuranceOfficeoftheCOAreviewstheauditprocessesoftheSAICOAonaregularbasis.Irevisetheanswerfrom"d"to"c"sinceaunitwithintheSAIconductsareviewoftheauditprocessesoftheSAIonaregularbasis.

124.Inthepast12months,howfrequentlydidtheheadoraseniorstaffmemberoftheSupremeAuditInstitution(SAI)takepartandtestifyinhearingsofacommitteeofthelegislature?

GUIDELINES:Question124concernstheinteractionbetweentwoimportantoversightactorsandassesseshowfrequentlytheSupremeAuditInstitution(SAI)madehigh-levelinputstotheworkoflegislativecommittees.ManySAIsinteractwiththelegislatureinsomeform,butthenatureandintensityoftheinteractionvaries.Thisquestionprobesthisaspectbyasking,withreferencetothepast12months,howfrequentlytheheadoraseniorstaffmemberoftheSAItookpartandtestifiedinhearingsofacommitteeofthelegislature.TheintentistoassesstheextenttowhichtheSAIrepresentativeinquestionwasnotonlypresentatameetingofalegislativecommittee,butwasanactiveparticipant(asopposedtoapassiveobserver,servingonlyasaresourcewhencalledupon).Youcanrefertoofficialrecordsoflegislativecommittees,websitesandannualreportsoftheSAI,pressreleasesandmediacoverage,forexample.Chooseanswer“a”ifthisoccurredfivetimesormore;“b”forthreetimesormore,butlessthanfivetimes;“c”foronceortwice,and“d”fornever.

Answer:a.Frequently(i.e.,fivetimesormore).

Source:CommitteeDailyBulletin,Vol.II,No.75,17thCongress,ThirdRegularSession,January29,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i75-20180129.pdf

CommitteeDailyBulletin,Vol.II,No.83,17thCongress,ThirdRegularSession,February13,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i83-20180213.pdf

CommitteeDailyBulletin,Vol.II,No.107,17thCongress,ThirdRegularSession,February13,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i91-20180228.pdf

CommitteeDailyBulletin,Vol.II,No.107,17thCongress,ThirdRegularSession,May16,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i107-20180516.pdf

CommitteeDailyBulletin,Vol.II,No.134,17thCongress,ThirdRegularSession,July17,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v2i134-20180717.pdf

Comment:CommissiononAudit(COA)SupervisingAuditorFlovitasFelipeassignedintheDepartmentofEnergy(DOE)apprisedtheHouseofRepresentatives(HOR)CommitteeonEnergyofthestatusoftheRenewableEnergy(RE)TrustFundbasedonCOA’slatestauditreportduringthepublichearingonJanuary29,2018.

COASupervisingAuditorFlovitasFelipeapprisedtheCommitteeonEnergyoftheresultsofthespecialauditontheMalampayafundfortheperiod2002to2012duringthehearingonFebruary13,2018

InahearingoftheCommitteeonGoodGovernmentandPublicAccountabilityonFebruary28,2018,COARegion1OIC-RegionalDirectorMichael

BacanidisclosedthatthereisanongoingfraudauditinvestigationbytheCOACentralOfficeonalltransactionsinvolvingtheutilizationbyaprovinceofitssharefromtheproceedsofthetobaccoexcisetaxfrom2010upto2016.COAwasrequestedtoprovidetheCommitteewithacopyofthereportassoonastheinvestigationiscompleted.

COADirectorLydiadeJoyasaidthatCOAhasalreadystarteditsinvestigationintothedisbursementoffundsfortheZ3RhousingprojectsduringtheHORCommitteeonHousingandUrbanDevelopmenthearingonMay16,2018.

DuringtheAdHocSubcommitteeonSmokeyMountainDevelopmentandReclamationProject(HousingandUrbanDevelopment)hearingonJuly17,2018,COASocialSecurityAuditSectorDirectorMaryAdelinosaidthattheauditobservationmemorandum(AOM)willbereleasedonJuly21andthespecialauditreportwillbereleasedinAugust2018.



125.Doestheexecutiveuseparticipationmechanismsthroughwhichthepubliccanprovideinputduringtheformulationoftheannualbudget(priortothebudgetbeingtabledinparliament)?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf.

PleaseconsideronlyparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencydesignatedbythegovernmenttoimplementparticipationmechanisms(“theexecutive”)iscurrentlyusingtoallowthepublictoparticipateintheformulationoftheannualbudget,includingannualpre-budgetdiscussions.Participationmechanismsusedonlybylineministriesshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbytheexecutive,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheformulationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasspendingandtaxpolicy,fundingandrevenuelevels,andmacro-fiscalplanning.

Toanswer“a,”theexecutivemustuseopenparticipationmechanismsthatinvolvethepublicintheformulationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficials.Examplesincludepublicmeetingsandonlinedeliberativeexchanges.

Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputintheformulationoftheannualbudget.Thisanswerappliesifthegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichtheexecutiveseeksoutinputsfromcitizens.Examplesincludesurveys,focusgroups,reportcards,publishedpolicyconsultationexercises,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesiftheexecutivehasestablishedamechanismormechanismstoallowcitizenstoparticipateinthebudgetformulationphase,but:

1)Themechanismsarenotstructuredandhappenonlyonad-hocbasis,ornotregularly.

and/or

2)Theexecutiveconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andtheexecutivedeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,thereshouldbesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothattheallCSOsandindividualmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.

Examplesofmechanismsthatmightqualifyasa“c”responseincludehotlines,Facebookannouncements,andone-offmeetingswithNGOsinwhichthereisapublicrecord.

Theresearchermustpresentevidencetosupportselectionofa“c”response.

https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:c.Yes,theexecutiveusesparticipationmechanismsduringthebudgetformulationphase,buteitherthesemechanismscaptureonlysomead-hocviews,ortheexecutiveinvitesspecificindividualsorgroupsforbudgetdiscussions(participationisnot,inpractice,opentoeveryone).

Source:ExecutiveOrderNo.325(ReorganizationoftheRegionalDevelopmentCouncils),1996:http://car.neda.gov.ph/eo-325-reorganization-of-the-regional-development-councils/

https://www.dbm.gov.ph/index.php/209-latest-issuances/national-budget-memorandum/2018/406-national-budget-memorandum-no-129

ReaCu,“DuterteadmindropsAquino’sgrassrootsbudgetingstrategy,”BusinessMirror,October5,2016:https://businessmirror.com.ph/2016/10/05/duterte-admin-drops-aquinos-grassroots-budgeting-strategy/

Comment:Section4ofExecutiveOrderNo.325ontheReorganizationoftheRegionalDevelopmentCouncils(RDCs)specifiesthatpartofthefunctionsoftheRDCs,whichiscomposedofatleast25percentrepresentativesfromprivatesectorandnon-governmentorganizations,istoreviewandendorsetothenationalgovernmenttheannualbudgetsofagencyregionaloffices,statecollegesanduniversitiesandspecialdevelopmentauthorities,aswellastocoordinatethemonitoringandevaluationofdevelopmentprojectsunderthesegovernmentunits.TheseRDCprocessesalsoallowNGOrepresentativestotakepartandprovideinputsinthemonitoringandimplementationoftheannualbudget.

AnnouncementofconsultationswithRegionalDevelopmentCouncils,CivilSocietyOrganizations,Student/FacultyAssociationsandPASUC,andotherStakeholdersundertheADM,inFY2019DetailedBudgetPreparationCalendarinAnnexCofNBM129:https://www.dbm.gov.ph/index.php/209-latest-issuances/national-budget-memorandum/2018/406-national-budget-memorandum-no-129

Section14,ArticleXofthe1987ConstitutionprovidesthatthePresidentshallcreateRegionalDevelopmentCouncils(RDCs)andothersimilarbodiescomposedoflocalgovernmentofficials,regionalheadsofdepartmentsandgovernmentofficesandrepresentativesfromnon-governmentalorganizationswithintheregions.TheNationalEconomicandDevelopmentAuthority(NEDA)managetheRDCs.

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,theexecutiveusesparticipationmechanismsduringthebudgetformulationphase,buteitherthesemechanismscaptureonlysomead-hocviews,ortheexecutiveinvitesspecificindividualsorgroupsforbudgetdiscussions(participationisnot,inpractice,opentoeveryone).Comments:Thedefinitionincludesthestipulation,"themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.'Infact,RegionalDevelopmentCouncilmeetingsonlyinvolvethosewhoareRDCmembersfromthepublic,privatesector,orcivilsociety.ParticularRDCsmayconveneseparateCSOconsultationsbutthatisrareandadhoc.Similarly,agencycentralofficesmightinvolveconsultation,butthisiscertainlyadhocandnotuniversal.


ResearcherResponseAregularfunctionoftheRegionalDevelopmentCouncilistheuseofopenparticipationmechanismsthroughwhichmembersofthepublicandgovernmentofficialsexchangeviewsonthebudget.Itreviewsandendorsestothenationalgovernmenttheannualbudgetsofagencyregionaloffices,statecollegesanduniversitiesandspecialdevelopmentauthorities,aswellastocoordinatethemonitoringandevaluationofdevelopmentprojectsunderthesegovernmentunits.Theappropriateansweris"a".

IBPCommentDuringanIBPreview,thisquestionisrevisedfromAtoC.AsthemeetingsareonlyopentospecificinvitedCSOs,andnotthegeneralpublic,thisscoresaConthisquestionasperOBSmethodology.PleasealsoseebelowforconfirmationofRDCmeetingsheldin2018:http://mimaropa.neda.gov.ph/rdc-conducts-budget-review-for-2019/https://pia.gov.ph/news/articles/1006180

126.Withregardtothemechanismidentifiedinquestion125,doestheexecutivetakeconcretestepstoincludevulnerableandunder-representedpartsofthepopulationintheformulationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleof“Inclusiveness”,andexaminestheexecutive’sefforttoactivelyreachouttocitizenswhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocesses.Theemphasishereisontheexecutive’seffortstoseekouttheviewsofmembersofthepublicfromsociallyvulnerablegroupsand/orwhoareunderrepresentedintheprocess.

Toanswer“a,”theexecutivemustactivelyseekoutindividualsfromvulnerableandunderrepresentedcommunitiesand/orcivilsocietyorganizationsrepresentingvulnerableandunderrepresentedindividualsandcommunities.Theresearchermustprovideevidencetoshowthegovernment’seffortsandactions.Theresearchermustspeakwiththerelevantgovernmentofficial(s),andsubsequentlydoublecheckwithanalternativesource,suchas

representativesofvulnerable/underrepresentedgroups.

Answer“b”appliesiftheexecutivedoesnottakeconcretestepstoincorporatevulnerable/underrepresentedindividuals,ororganizationsrepresentingthem,intoparticipationmechanismsoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:b.Therequirementsforan“a”responsearenotmet.


Comment:Section4ofExecutiveOrderNo.325ontheReorganizationoftheRegionalDevelopmentCouncils(RDCs)specifiesthatpartofthefunctionsoftheRDCs,whichiscomposedofatleast25percentrepresentativesfromprivatesectorandnon-governmentorganizations,istoreviewandendorsetothenationalgovernmenttheannualbudgetsofagencyregionaloffices,statecollegesanduniversitiesandspecialdevelopmentauthorities,aswellastocoordinatethemonitoringandevaluationofdevelopmentprojectsunderthesegovernmentunits.TheseRDCprocessesalsoallowNGOrepresentativestotakepartandprovideinputsinthemonitoringandimplementationoftheannualbudget.Itisindicatedthatprivatesectorrepresentatives(PSRs)whoshallcompriseone-fourthofthemembersofthefully-constitutedcouncil.TheNGOsthatareincludedoftencarrylinkswithvulnerableandunder-representedpartsofthepopulation.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theexecutivetakesconcretestepstoincludeindividualsand/orCSOsrepresentingvulnerableandunderrepresentedpartsofthepopulationintheformulationoftheannualbudget.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoA.TheresearcherhasalreadyagreedinhiscommentthatunderEONo.325,PSRsintheRDCarelinkedtovulnerableandunderrepresentedpartsofthepopulation.However,thisisnotconsistentandreflectedintheresearcher'srating.Link:ExecutiveOrderNo.325(ReorganizationoftheRegionalDevelopmentCouncils),1996:http://car.neda.gov.ph/eo-325-reorganization-of-the-regional-development-councils/

ResearcherResponseTomeritan"a"rating,theguidelineindicatesthattheresearchermustprovideevidencetoshowthegovernment’seffortsandactionsinensuringtherepresentationofvulnerableandunderrepresentedindividualsandcommunities.Failingtogathersuchevidence,the"b"ratingisdeemedanappropriateanswer.

127.Duringthebudgetformulationstage,whichofthefollowingkeytopicsdoestheexecutive’sengagementwithcitizenscover?

Forthepurposeofthisquestion,keytopicsareconsideredtobe:

1.Macroeconomicissues2.Revenueforecasts,policies,andadministration3.Socialspendingpolicies4.Deficitanddebtlevels5.Publicinvestmentprojects6.Publicservices

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsiderallofthemechanismscurrentlyusedbytheexecutivetopromotepublicparticipationduringtheformulationoftheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics--andforthisreasontheotherquestionsassessingtheexecutive’sengagementwiththepublicduringbudgetformulationcanbeansweredonthebasisofengagementontopicsotherthanthesixlistedabove--forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeonlytheoneslistedabove.Iftheexecutive’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.

Notealsothatthisquestionassessesonlythecoverageofpublicengagement(i.e.,“whatissuesisthepublicinvitedtoengageon?”)andissuesrelatedtothedepthofengagementorselectivityofengagedarenotdealtwithbythisquestion.

Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:c.Theexecutive’sengagementwithcitizenscoversatleastone(butlessthanthree)oftheabove-mentionedtopics.


Comment:Section4ofExecutiveOrderNo.325ontheReorganizationoftheRegionalDevelopmentCouncils(RDCs)specifiesthatpartofthefunctionsoftheRDCs,whichiscomposedofatleast25percentrepresentativesfromprivatesectorandnon-governmentorganizations,istoreviewandendorsetothenationalgovernmenttheannualbudgetsofagencyregionaloffices,statecollegesanduniversitiesandspecialdevelopmentauthorities,aswellastocoordinatethemonitoringandevaluationofdevelopmentprojectsunderthesegovernmentunits.TheseRDCprocessesalsoallowNGOrepresentativestotakepartandprovideinputsinthemonitoringandimplementationoftheannualbudget.However,theexecutive’sengagementwiththecitizenscoversonlysocialspendingandpublicinvestmentprojects.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Theexecutive’sengagementwithcitizenscoversallsixtopics.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoA.AsimplementedandbyvirtueofEONo.325,theexecutive'sengagementwiththecitizenscoverssocialspendingpolicies,publicinvestmentprojects,aswellaspublicservicesprojects,giventhewiderangeofprogramsbeingreviewedbytheRDC.TheDBMalsolivestreamsonFacebookbriefingoftheDevelopmentBudgetCoordinatingCommittee(DBCC),PhilippineEconomicBriefings,andSulongPilipinaswhichdiscussesallsix(6)topicsonmacroeconomicissues,revenueforecasts,policies,andadministration,aswellasdeficitanddebtlevels.MembersofthepublicareallowedtocommentandprovideinputsviaFacebookreactionsandcommentsontthislivestreams.Weblinks:DBCCbriefinglivestreamonApril24,2018:https://web.facebook.com/DBMgovph/videos/2036994646554794/DBCCbriefinglivestream,September5,2018:https://www.facebook.com/DBMgovph/videos/1926326317667050/SulongPilipinaslivestream:https://www.facebook.com/DBMgovph/videos/297902551008178/

IBPCommentAstheconsultationreferredtobythegovernmentreviewerlinkstoadifferentcoordinationbody(DBCC)andnottheRDCwhichisthemechanismassessedinthisquestion,theDBCCshouldbeconsideredonwhetheritisapublicengagementmechanism.BasedontheinformationpubliclyavailableabouttheDBCC(https://www.dbm.gov.ph/index.php/dbcc-matters/about-the-dbcc)itappearsthisisacoordinatingbodyofthegovernment,anddoesnotinvolveanymembersofthepublicorcivilsociety.Forthatreason,itcannotbecountedforthisquestion,eveniftheproceedingsarelive-streamed.Theresearcher'soriginalresponseofCisconfirmed.

128.Doestheexecutiveuseparticipationmechanismsthroughwhichthepubliccanprovideinputinmonitoringtheimplementationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf.

PleaseconsideronlyparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencydesignatedbythegovernmenttoimplementparticipationmechanisms(“theexecutive”)iscurrentlyusingtoallowthepublictoparticipateinmonitoringtheimplementationoftheannualbudget.Iftheexecutivehasdesignatedacentralcoordinatingagencytoimplementparticipationmechanismsthroughoutthenationalbudgetprocess,researchersmayconsiderthesemechanisms.Participationmechanismsusedonlybylineministriesshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbytheexecutive,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheimplementationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasrevenueadministration,publicservicedelivery,publicinvestmentprojectimplementation,includingprocurement,andtheadministrationofsocialtransferschemes.

Toanswer“a,”theexecutivemustuseopenparticipationmechanismsthatinvolvethepublicintheimplementationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficial.Examplesincludepublicmeetings,online,deliberativeexchanges,procurementcomplaintmechanisms,andsocialmonitoringanddialogue.

Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputontheimplementationoftheannualbudget.Thisanswerappliesif


thegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichtheexecutiveseeksoutinputsfromcitizens.Examplesincludepublichearings,surveys,focusgroups,reportcards,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesiftheexecutivehasestablishedamechanismormechanismstoallowcitizenstoprovideinputonbudgetimplementation,but:

1)Themechanismsarenotstructured,happenonlyonad-hocbasis,ornotregularly.

and/or

2)Theexecutiveconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andtheexecutivedeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,theresearchermusthaveevidencethatthegovernmentisholdingparticipationmechanismsthathavesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothatallCSOsandmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.

Examplesincludehotlines,Facebookannouncements,one-offmeetingswithNGOsinwhichthereisapublicrecord.


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.

Answer:c.Yes,theexecutiveusesparticipationmechanismsduringthebudgetimplementationphase,buteitherthesemechanismscaptureonlysomead-hocviews,ortheexecutiveinvitesspecificindividualsorgroupsforbudgetdiscussions(participationisnot,inpractice,opentoeveryone).


PhilippineOpenGovernmentPartnership(PH-OGP)NationalActionPlan2017-2019:https://www.opengovpartnership.org/documents/philippines-2017-2019-action-plan-updated

OpenBuBPortal:http://www.openbub.gov.ph)


ThroughthePhilippineOpenGovernmentPartnership(PH-OGP)platform,theexecutiveconductednumerousmulti-stakeholderworkshopswhichprovideddifferentnon-governmentorganizationstointeractwithgovernmentrepresentativesandaskquestionsonthebudgetandtheimplementationofkeyprioritygovernancereforms.

TheOpenBuBportalallowscitizenstomonitorandprovidecommentsonthestatusofimplementationofon-goingprojects.ThroughthePhilippineOpenGovernmentPartnershipplatform,theexecutivehasalsoconductednumerousmultistakeholderworkshopswhichprovideddifferentnongovernmentstakeholderstointeractwithgovernmentrepresentativesandaskquestionsonthebudgetandimplementationofkeyprioritygoodgovernancereformsofthegovernment.

PeerReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theexecutiveusesopenparticipationmechanismsthroughwhichmembersofthepublicprovidetheirinputsonbudgetimplementation.Comments:TheRDCmechanismsareopentospecificindividuals/groupsasmembersoftheRDC.TheOGPplatformiscontinuallynascent--infact,theweblocationcitedbytheOpenGovernancePartnershipActionPlan(https://www.facebook.com/goodgovPH)leadstoanoppositioncivilsocietygroupandthedbmwebsiteforitHttp://governance.dbm.gov.phisinaccessible.However,thereiscontinuedactivityintheOGPeffortundertheDuterteadministration,withanewactionplanbeingdevisedfor2019-2021atfacebook.com/opengovPHandcontinuedpostingonthataccount.Ageneralreviewforthistimeperiodisfoundathttps://www.opengovpartnership.org/documents/philippines-end-of-term-report-2015-2017-year-2/anddoesmentionproblemswithbroadparticipation.TheBUBmechanismonlyeverappliedtoasubsetofprograms,andhasbeenabandonedbythecurrentadministrationasofmid-2016.


ResearcherResponseIagreewiththecommentofthePeerRevieweronthediscontinuedOpenBUBPortal.However,theRDCprocessremainsanopenparticipationmechanismthroughwhichmembersofthepublicandgovernmentofficialsexchangeviewsonbudgetimplementation,thus,justifyingan"a"score.

IBPCommentBasedonthefeedbackofthepeerreviewerandtheresearcher,astheRegionalDevelopmentCouncils(RDCs)arethemechanismthatisbeingconsideredforthisquestion,thescoreisrevisedfromAtoC.ThisisbecauseonlyspecificCSOsareinvitedtotakepartinmeetings,andnotthegeneralpublic.Seealsotheresponseto125,wheretheRDCsarealsoconsideredforthatquestion.

129.Withregardtothemechanismidentifiedinquestion128,doestheexecutivetakeconcretestepstoreceiveinputfromvulnerableandunderrepresentedpartsofthepopulationontheimplementationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprincipleof“Inclusiveness”,andexaminestheexecutive’sefforttoactivelyreachouttocitizenswhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocesses.Theemphasishereisonnationalgovernment’seffortstoobtaininputfrommembersofthepublicwhoarefromsociallyvulnerablegroupsand/orunderrepresentedinnationalprocessesduringtheimplementationoftheannualbudget.

Toanswer“a,”theexecutivemustactivelyseekoutindividualsfromvulnerableandunderrepresentedcommunityand/orcivilsocietyorganizationsrepresentingvulnerableandunderrepresentedindividualsandcommunities.Theresearchermustprovideevidencetoshowthegovernment’seffortsandactions.Theresearchermustspeakwiththerelevantgovernmentofficial(s),andsubsequentlydoublecheckwithanalternativesource,suchasrepresentativesfromvulnerable/underrepresentedgroups.

Answer“b”appliesifthenationalexecutivedoesnottakeconcretestepstoincorporatevulnerable/underrepresentedindividuals,ororganizationsrepresentingthem,intoparticipationmechanismsoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.

Answer:b.Therequirementsforan“a”responsearenotmet.


PhilippineOpenGovernmentpartnership(PH-OGP)NationalActionPlan2017-2019:https://www.opengovpartnership.org/documents/philippines-2017-2019-action-plan-updated


ThroughthePhilippineOpenGovernmentPartnership(PH-OGP)platform,theexecutiveconductednumerousmulti-stakeholderworkshopswhichprovideddifferentnon-governmentorganizationstointeractwithgovernmentrepresentativesandaskquestionsonthebudgetandtheimplementationofkeyprioritygovernancereforms.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theexecutivetakesconcretestepstoreceiveinputfromindividualsfromand/ororganizationsrepresentingvulnerableandunderrepresentedpartsofthepopulationontheimplementationoftheannualbudget.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoA.Theresearcherhasalreaduyagreedinhiscommentthatcitizensandnon-governmentorganizationsareabletoprovideinputsandaskquestionsonthenationalbudgetthroughE.O.No.325andthePH-OGPplatform.However,thisisnotconsistentandisnotreflectedintheresearcher'srating.Source:ExecutiveOrderNo.325(ReorganizationoftheRegionalDevelopmentCouncils),1996:http://car.neda.gov.ph/eo-325-reorganization-of-the-regional-development-councils/PhilippineOpenGovernmentpartnership(PH-OGP)NationalActionPlan2017-2019:https://www.opengovpartnership.org/documents/philippines-2017-2019-action-plan-updated

ResearcherResponseIagreewiththePeerReviewer.

IBPCommentTheresearcherandpeerreviewer'sresponsesareconfirmed.ThereisnoevidencethatthegovernmenttakeproactivestepstoincludevulnerablegroupsintheRDCconsultationmechanism,thereforethescoreisB.

130.Duringtheimplementationoftheannualbudget,whichofthefollowingtopicsdoestheexecutive’sengagementwithcitizenscover?


1.Changesinmacroeconomiccircumstances2.Deliveryofpublicservices3.Collectionofrevenue4.Implementationofsocialspending5.Changesindeficitanddebtlevels6.Implementationofpublicinvestmentprojects

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsiderallofthemechanismscurrentlyusedbytheexecutivetopromotepublicparticipationduringtheimplementationoftheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics--andforthisreasontheotherquestionsassessingtheexecutive’sengagementwiththepublicduringbudgetimplementationcanbeansweredonthebasisofengagementontopicsotherthanthesixlistedabove--forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeONLYtheoneslistedabove.Iftheexecutive’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.


Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.

Answer:c.Theexecutive’sengagementwithcitizenscoversatleastone(butlessthanthree)oftheabove-mentionedtopics.

Source:SarwellMeniano,“RDCtomonitor188EasternVisayasprojects,”PhilippineNewsAgency,June22,2018:https://www.pna.gov.ph/articles/1039190

Comment:NationalEconomicandDevelopmentAuthority(NEDA)RegionalDirectorBonifacioUy,chairoftheRDC’sRegionalProjectMonitoringCommittee(RPMC),saidthereare188projectspickedbythebodyformonitoring.Theseprojectsincludepost-“Yolanda”reconstructionactivities;resettlementsitesinTaclobanCity,EasternSamar,Leyte,andBiliran;livelihoodprojects;irrigations;socialinfrastructure;agricultureandfishery;roadandbridges;roadsleadingtotourismdestinations;roadsinconflict-strickenareas;seaports;andairports.UysaidtheprojectmonitoringinitiativebyRDCmembersbothfromgovernmentandprivatesectorwillhelpensuretimelyimplementationofprogramsandprojectscriticaltotheattainmentofgoalsinthe2017-2022RegionalDevelopmentPlan.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Theexecutive’sengagementwithcitizenscoversallsixtopics.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoA.Intheexamplecited,the188projectscovertopicsonimplementationofsocialspending,deliveryofpublicservices,andimplementationofpublicinvestmentprojects,3outofthe6citedtopics.TheDBMalsolivestreamsonFacebookthebriefingsoftheDevelopmentBudgetCoordinatingCommittee(DBCC),PhilippineEconomicBriefings,andSulongPilipinaswhichtacklesallsix(6)topicsonmacroeconomicissues,revenueforecasts,policies,andadministration,aswellasdeficitanddebtlevels.MembersofthepublicareallowedtocommentandprovideinputviaFacebookreactionsandcommentsonthislivestreams.DBCCbriefinglivestreamonApril24,2018:https://web.facebook.com/DBMgovph/videos/2036994646554794/DBCCbriefinglivestream,September5,2018:https://www.facebook.com/DBMgovph/videos/1926326317667050/PEBlivestream:https://www.facebook.com/DBMgovph/videos/297902551008178/

ResearcherResponseIrevisetheratingto"a"basedonthecitationprovidedbytheGovernmentReviewer.

IBPCommentAstheconsultationreferredtobythegovernmentreviewerlinkstoadifferentcoordinationbody(DBCC)andnottheRDCwhichisthemechanismassessedinthisquestion,theDBCCshouldbeconsideredonwhetheritisapublicengagementmechanism.BasedontheinformationpubliclyavailableabouttheDBCC(https://www.dbm.gov.ph/index.php/dbcc-matters/about-the-dbcc)itappearsthisisacoordinatingbodyofthegovernment,anddoesnotinvolveanymembersofthepublicorcivilsociety.Forthatreason,itcannotbecountedforthisquestion,eveniftheproceedingsarelive-streamed.Basedonthegovernmentreviewer'scommentofthe188projects-thiscoversonlydeliveryofpublicservicesand

implementationofpublicinvestmentprojects.Itdoesnotcoverimplementationofallsocialspending,onlythepartrelatedtotheseprojects.Theresearcher'soriginalresponseofCisconfirmed.

131.Whentheexecutiveengageswiththepublic,doesitprovidecomprehensivepriorinformationontheprocessoftheengagement,sothatthepubliccanparticipateinaninformedmanner?

Comprehensiveinformationmustincludeatleastthreeofthefollowingelements:

1.Purpose2.Scope3.Constraints4.Intendedoutcomes5.Processandtimeline

GUIDELINES:ThisquestionrelatestotheGIFTprincipleof“Openness,”andaddresseswhethertheexecutiveprovidesrelevantinformationontheprocessoftheengagementbeforepublicparticipationtakesplace,inordertohelpcitizensengageeffectively.Thequestionaddresseswhetherthe“rulesofthepublicengagement”areclearlyspelledout,inadvanceandindetail,sothatthosemembersofthepublicwhowanttoengageknowhowtodoso,intermsofwhentheycandoso,whattheyareexpectedtoprovideinputon,bywhen,towhom,etc.Thisquestiondoesnotcoverthesubstanceoftheengagement,whichiscoveredbyquestions127and130.

Non-comprehensiveinformationmeansthatthegovernmentprovidesinformationthatincludesatleastonebutlessthanthreeoftheelementslistedabove.

Purposereferstoabriefexplanationofwhythepublicengagementisbeingundertaken,includingtheexecutive’sobjectivesforitsengagementwiththepublic.

Scopereferstowhatiswithinthesubjectmatteroftheengagementaswellaswhatisoutsidethesubjectmatteroftheengagement.Forexample,thescopemayincludehowacurrentpolicyisadministeredbutexcludethespecificsofthepoliciesthemselves.

Constraintsreferstowhethertherearethereanyexplicitlimitationsontheengagement.Anexampleofaconstraintcouldbethatanypolicychangesmustnotcost(orforgorevenue)morethanaspecificamountorhavenonetfiscalcost.

Intendedoutcomesreferstowhattheexecutivehopestoachieveasaresultoftheengagement.Examplesofintendedoutcomescouldberevisingapolicytobetterreflectcitizenorservice-userviewsortoimprovethewayinwhichaparticularprogramisadministered.

Processreferstothemethodsbywhichthepublicengagementwilltakeplaceandthediscretestepsintheprocess.Forexample,theprocessmaysimplybeaone-offInternet-basedconsultation,withasummarypublishedofpublicinputsandtheofficialresponse.Theprocessmayinvolvesimultaneousoroverlappingsteps,andmaybeconductedinoneroundorintwoormoreroundsofengagement.

Timelinereferstothespecificdatesonwhichthediscretestepsintheprocesswilltakeplace,orduringwhichtheywillbecompleted,andclearstartandenddatesfortheoverallengagement.

Answer“d”appliesiftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationorformulationstage.

Answer:c.Informationisprovidedinatimelymannerinbothoroneofthetwophases,butitisnotcomprehensive.

Source:AnnouncementofconsultationswithRegionalDevelopmentCouncils,CivilSocietyOrganizations,Student/FacultyAssociationsandPASUC,andotherStakeholdersundertheADM,inFY2019DetailedBudgetPreparationCalendarinAnnexCofNBM129:https://www.dbm.gov.ph/index.php/209-latest-issuances/national-budget-memorandum/2018/406-national-budget-memorandum-no-129

Comment:OpenBuBPortal:http://www.openbub.gov.ph

TheOpenBuBportalallowscitizenstomonitorandprovidecommentsonthestatusofimplementationofon-goingprojects.ThroughthePhilippineOpenGovernmentPartnershipplatform,theexecutivehasalsoconductednumerousmultistakeholderworkshopswhichprovideddifferentnongovernmentstakeholderstointeractwithgovernmentrepresentativesandaskquestionsonthebudgetandimplementationofkeyprioritygoodgovernancereformsofthegovernment.



b.Comprehensiveinformationisprovidedinatimelymannerpriortocitizensengagementonlypriortooneofthetwophases(formulationORimplementation).Comments:Disagree.Tosustainpreviouseffortsonstrengtheningtheverticalandhorizontallinkagesinplanning,programmingandbudgeting,theDBM-NEDAJointMemorandumCircularonRegionalInvestmentProgrammingdatedNovember21,2018wasissued,priortotheFY2020budgetcall.FocusingonstrengtheningtheRegionalDevelopmentCouncil(RDC)processesparticipatedinbycivilsociety,thispolicyprovidescomprehesivepriorinformationontheregionalinvestmentprogrammingtimelineandprocessforthebudgetformulationoftheFY2020budget.Section2.2ofthisJMCspecificallyprovidestheprocedureandtimetableforAgencyCentralOffice(AGO)togivefeedbacktotheRegionalDevelopmentCouncils(RDCs),throughtheAgencyRegionalOffices(AROs),onthefollowing:-PriorityPrograms,Activities,Projects(PAPs)undertheRegionalDevelopmentInvestmentPrograms(RDIPs)includedornotincludedintheGAA),andthereasonsfornon-inclusion;and-PriorityPAPsundertheRDIPsincludedintheagencybudgetproposals,andintheGeneralAppropriationsAct(GAA).Link:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/Joint%20Memorandum%20Circular/DBM-NEDA-JOINT-MEMORANDUM-CIRCULAR-JMC-NO-2018-1-CTC%20ONLY.pdf

ResearcherResponseSection2.2oftheDBM-NEDAJointMemorandumCircularprovidestheprocedureandtimetableforAgencyCentralOffice(AGO)togivefeedbacktotheRegionalDevelopmentCouncils(RDCs),throughtheAgencyRegionalOffices(AROs).IagreewiththeGovernmentReviewertochangetheanswertob.

IBPCommentAsthecircularcitedbythegovernmentreviewerdoesnotprovideanydetailsonthetimelineforRDCstoconducttheconsultations,andonlyprovidesdetailsonwhentheRDCswillreceiveinformationfromtheAgencyCentralOffice,thisdocumentdoesnotprovideacomprehensivetimelineforhowthepubliccanengageinRDCconsultations.Thedocumentthatdoeshavethatinformationispostedonthewebsitehere:http://nro10.neda.gov.ph/2018-rdc-full-council-meeting-resolutions/andonGoogleDriveherehttps://drive.google.com/file/d/1usvYplz0imjwCLTEhCoJKLcrH1KspvJT/viewMetadataforthisdocumentshowsthatitwasonlyuploadedinDecember2018,however,afterthebudgetpreparationprocesswasalreadycompleted,whichmeansthatthepublicdidnothaveaccesstothisinformationintimetobeabletoparticipateintheprocess.Forthatreason,thescoreisrevisedfromBtoC.

132.Withregardtothemechanismidentifiedinquestion125,doestheexecutiveprovidethepublicwithfeedbackonhowcitizens’inputshavebeenusedintheformulationoftheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheexecutiveprovidesinformationtocitizensonwhichpublicinputswerereceived,whichonesareusedintheformulationoftheannualbudget,andhow/why.

By“writtenrecord”,wemeanadocumentthatisproducedandreleasedbytheleadbudgetagency(MinistryofFinance,Treasury)thathassetupandholdstheparticipationactivity.

Answer“a”applieswhentheexecutiveprovidesawrittendocumentwith:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicand

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow)

Answer“b”applieswhentheexecutiveprovidesawrittendocumentthatincludes:


-Anot-so-detailedreport,suchasadocumentwithafewparagraphs,onhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereusedornotused.

Answer“c”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicor

-Areport(beingitdetailedornot-so-detailed)onhowpublicinputshavebeenusedornotused.

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationstage.

Answer:d.Therequirementsfora“c”responseorabovearenotmet.

Source:

Comment:Awrittenrecordisnotprovidedonhowtheinputsfromthenon-governmentstakeholdersintheRegionalDevelopmentCouncilshavebeenusedintheformulationoftheannualbudget.



IBPCommentIBPnotesthatreportsontheresolutionsoftheRDCarepostedhere:http://nro10.neda.gov.ph/2018-rdc-full-council-meeting-resolutions/However,onthiswebsitethereisnoreportonhowcitizenfeedbackhasbeenusedtoinformbudgetpriorities.Theresearcher'sresponseisconfirmed.

133.Withregardtothemechanismidentifiedinquestion128,doestheexecutiveprovidethepublicwithinformationonhowcitizens’inputshavebeenusedtoassistinmonitoringtheimplementationoftheannualbudget?

GUIDELINES:

ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheexecutiveprovidesinformationtocitizensonwhichpublicinputswerereceivedduringtheimplementationoftheannualbudget,whichonesaretakeintoaccounttoimprovebudgetmonitoring,andhow/why.

By“writtenrecord”,wemeanadocumentthatisproducedandreleasedbytheleadbudgetagency(MinistryofFinance,Treasury)thathassetupandholdstheparticipationactivity.

Answer“a”applieswhentheexecutiveprovidesawrittendocumentwith:


-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow)

Answer“b”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputsreceived(e.g.,awrittentranscript)fromthepublicand

-Anot-so-detailedreport,suchasadocumentwithafewparagraphs,onhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereorwerenottakenintoaccountbytheexecutiveduringbudgetmonitoring.

Answer“c”applieswhentheexecutiveprovidesawrittendocumentthatincludes:

-Theinputs(e.g.,awrittentranscript)receivedfromthepublicor


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetimplementationstage.


Source:

Comment:Awrittenrecordisnotprovidedonhowtheinputsfromthenon-governmentstakeholdersintheRegionalDevelopmentCouncilshavebeenusedtoassistinthemonitoringoftheannualbudget.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,theexecutiveprovidesawrittenrecordwhichincludesboththelistofinputsreceivedandasummaryofthehowtheinputswereusedtoassistinmonitoringtheannualbudget.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoC.ThePH-OGPNationalActionPlan2017-2019publishesanAnnexwithlistofinputsandgovernmentresponseontheinputsreceivedfromcitizens.SeetheAnnexA(pages63-88)ofthePhilippineOpenGovernmentpartnership(PH-OGP)NationalActionPlan2017-2019:https://www.opengovpartnership.org/documents/philippines-2017-2019-action-plan-updated

ResearcherResponseIrevisetheratingto"b"afterthecitationprovidedbytheGovernmentReviewer.

IBPCommentBasedonearlierquestions,theOGPwebsiteisnotconsideredasamechanismforthesequestions,onlytheRDC.Therefore,theresearcher'soriginalresponseofDisconfirmedforthisquestion.

134.AreparticipationmechanismsincorporatedintothetimetableforformulatingtheExecutive’sBudgetProposal?

GUIDELINES:ThisquestionreflectstheGIFTprincipleson“Sustainability,”“Timeliness”and“Complementarity”andaddresseswhethertheexecutiveisabletolinkparticipationmechanismstotheadministrativeprocessesthatareusedtocreatetheannualbudget.

Pleasenotethat“timetable”referstoadocumentsettingdeadlinesforsubmissionsfromothergovernmententities,suchaslineministriesorsubnationalgovernment,totheMinistryofFinanceorwhatevercentralgovernmentagencyisinchargeofcoordinatingthebudget’sformulation.ThisdocumentissometimesreferredtoasthebudgetcalendarandisthesamedocumentreferencedinQuestion53.

Answer“a”appliesifthenationalexecutiveestablishesaclearsetofguidelinesthatenablecitizensandcivilservantstounderstandwhenparticipationmechanismsshouldbeusedtoenablecitizeninputstobeincorporatedintotheannualbudget.Foranswerchoice“a”,thetimetablemustbeavailabletothepublicpriortothebudgetpreparationprocessbeginning.

Answer“b”appliesiftheexecutivedoesnotestablishaclearsetofguidelinesthatenablecitizensandcivilservantstounderstandwhenparticipationmechanismsshouldbeusedtoenablecitizeninputstobeincorporatedintotheannualbudgetoriftheexecutivedoesnotusepublicparticipationmechanismsduringthebudgetformulationorimplementationstage.

Answer:a.Yes,theexecutiveincorporatesparticipationintoitstimetableforformulatingtheExecutive’sBudgetProposalandthetimetableisavailabletothepublic.

Source:NationalBudgetMemorandumNo.129(NationalBudgetCallforFY2019),January3,2018,page26:https://www.dbm.gov.ph/wp-content/uploads/Issuances/2018/National%20Budget%20Memorandum/NBM-No129.pdf

Comment:AnnexCinNationalBudgetMemorandumNo.129containsthebudgetpreparationcalendarforFY2019.ConsultationswithcivilsocietyorganizationsarescheduledonFebruary2018.



135.Dooneormorelineministriesuseparticipationmechanismsthroughwhichthepubliccanprovideinputduringtheformulationorimplementationoftheannualbudget?

GUIDELINESWhilequestions125–135focusonlyonparticipationmechanismsthattheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencycurrentlyusetoallowthepublictoparticipateinthenationalbudgetprocess,thisquestionasksaboutparticipationmechanismsusedbylineministriestoallowthepublictoparticipateinnationalbudgetprocesses.Thus,participationmechanismsusedbytheMinistryofFinance,leadbudgetagency,orcentralcoordinatingagencyshouldnotbeusedtoanswerthisquestion.Ifthereismorethanonemechanismusedbyalineministryorifmultiplelineministriesuseparticipationmechanisms,pleaseselectthedeepestormostinteractivemechanismthatreflectsthegovernment’seffortstoincorporatecitizens’inputintotheformulationand/orimplementationoftheannualbudget.

ThisquestionreflectstheGIFTprincipleson“Inclusiveness”and“Timeliness”andassessestheextenttowhichtheparticipationmechanism(s)usedbytheexecutivearetrulyinteractiveandinvolveatwo-wayconversationbetweencitizensandtheexecutive.

ThedraftingofthisquestionanditsanswersarepartiallydrawnfromtheIAP2SpectrumofPublicParticipation,inparticularwithregardstotheconceptsof“involvement”(option“a”intheresponses)and“consultation”(option“b”).See:https://cdn.ymaws.com/www.iap2.org/resource/resmgr/foundations_course/IAP2_P2_Spectrum_FINAL.pdf


Toanswer“a,”alineministrymustuseopenparticipationmechanismsthatinvolvethepublicintheformulationorimplementationoftheannualbudget.ThismeansthatapublicprocessisinplacewherebyCSOsand/orindividualmembersofthepublicandgovernmentofficialsinteract,andhavetheopportunitytoexpresstheiropinionstoeachotherinwhatcanbeconsideredapublicdialoguebetweenthem(i.e.,in-personandonlinediscussionforums).Additionally,themechanismshouldbeopentoanyCSOand/orindividualmembersofthepublicwhowishtoparticipate.Byselectingthisanswer,theresearchermustpresentevidencetosupportthepresenceofapublicdialogueamongcitizensandgovernmentofficial.Examplesincludepublicmeetingsandonlinedeliberativeexchanges.Answer“b”appliesifanopenconsultationmechanismisinplacewherebymembersofthepublic(i.e.,individualsand/orCSOsaswellasacademics,independentexperts,policythinktanks,andbusinessorganizations)canprovidetheirinputintheformulationorimplementationoftheannualbudget.Thisanswerappliesifthegovernmentisusingamechanismthatisstructuredandwellestablished,andnotad-hoc.Theresearchermustpresentevidencetosupportthepresenceofconsultativeprocessesthroughwhichalineministryseeksoutinputsfromcitizens.Examplesincludesurveys,focusgroups,reportcards,publishedpolicyconsultationexercises,andonlineplatformsthatgovernmentofficialsactivelymanagetosolicitinputs.

Answer“c”appliesifalineministryhasestablishedamechanismormechanismstoallowcitizenstoparticipateinthebudgetformulationphase,but:

1)Themechanismsarenotstructuredandhappenonlyonad-hocbasis,ornotregularly.

and/or

2)Alineministryconsultswithand/orinteractswith,citizens,butthereisdiscretioninwhoisallowedtoparticipate,andthelineministrydeterminesfullyorpartiallysuchselectionprocessbyinvitingspecificgroups(forexamplebymakinganopencallbutjusttoexpertsfromaparticularsector,ornamingspecificorganizations).Whileitisnotpossibleforallcitizensand/orCSOstoparticipateinthisorotherphasesofthebudgetprocess,options“a”and“b”applyifthegovernmentdoesnotexerciseanydiscretionindeterminingwhoisallowedtoparticipate.Whilethereislikelygoingtobeself-selection,itisimportantthattheselectionisnotmadebytheexecutive.

Incaseswherethereisdiscretioninwhoisallowedtoparticipate,toselectanswerchoice“c”,thereshouldbesomesortofpublicrecord(heldinpublic,minutesofmeetingsreleasedtopublic)sothattheallCSOsandindividualmembersofthepubliccanhaveknowledgeofthemeeting,whoparticipated,andwhatwasdiscussed.


Examplesofmechanismsthatmightqualifyasa“c”responseincludehotlines,Facebookannouncements,andone-offmeetingswithNGOsinwhichthereisapublicrecord.

Answer:c.Yes,atleastonelineministryusesparticipationmechanismsduringthebudgetformulationorimplementationphase,buteitherthesemechanismscaptureonlysomead-hocviews,ortheexecutiveinvitesspecificindividualsorgroupsforbudgetdiscussions(participationisnot,inpractice,opentoeveryone).

Source:DILG,"DILGurgespublictomonitorlocalprojectsthroughSubayBAYAN,"PhilippineNewsAgency,July31,2018:https://pia.gov.ph/news/articles/1011079

Comment:Thegovernment’sdrivefortransparencyinlocalgovernancehasbeenfurtherheightenedwiththelaunchingofSubayBAYANorSubaybayanangProyektongBayan,anonlineplatformontheimplementationofthelocally-fundedprojects(LFPs)beingadministeredbytheDepartmentoftheInteriorandLocalGovernment(DILG).DILGOIC-SecretaryEduardoM.Añosaysthatmorethanarepositoryofinformation,SubayBAYANwillenablethepublictohavefirsthanddocumentationonthedevelopmentofvariousprojectimplementationsintheirrespectivelocalgovernmentunits(LGUs),creatingacheckandbalanceenvironment."Aswhatthenameimplies,thepubliccan'keepaneye'ontheinfrastructureandwaterprojectsbeingcarriedoutbyLGUsalloverthecountrythroughSubayBAYANtopushthemtofasttrackprojectimplementationandensurethatgovernmentfundsarebeingspentwiselyandjudiciously,"saysAño.TheDILGChiefsaysthatSubayBAYAN,accessibleonlinethroughtheDILGwebsitewww.dilg.gov.ph,providesrealtimeinformationonvariousprojects'physicalandfinancialstatus;informationonactuallocationofprojectsthrumapoverlaysanddashboardgraphicalrepresentations;offersfeedbackmechanisms;andlikeandshareinformationthrusocialmedialikeFacebook.

PeerReviewerOpinion:DisagreeSuggestedAnswer:c.Yes,atleastonelineministryusesparticipationmechanismsduringthebudgetformulationorimplementationphase,buteitherthesemechanismscaptureonlysomead-hocviews,ortheexecutiveinvitesspecificindividualsorgroupsforbudgetdiscussions(participationisnot,inpractice,opentoeveryone).Comments:Theresearcher'scommentshavetodowithbudgetprojectsofthelocalgovernmentunits,nottheExecutiveBudgetofthenationalgovernment.MechanismssuchasmeetingsoftheRegionalDevelopmentCouncilscanbevenuesforspecificlineagenciestointeract,ascanbudgetpartnershipagreements,buttheseareonlyadhocandnotopentoeveryone.


ResearcherResponseIagreewiththePeerReviewer.Ichangemyanswertoc.

136.Doesthelegislatureortherelevantlegislativecommittee(s)holdpublichearingsand/oruseotherparticipationmechanismsthroughwhichthepubliccanprovideinputduringitspublicdeliberationsontheformulationoftheannualbudget(pre-budgetand/orapprovalstages)?

GUIDELINES:ThisquestionreflectstheGIFTprincipleon“Sustainability,”“Transparency,”and“Complementarity”andassessestheextenttowhichtheparticipationmechanism(s)usedbythelegislativeareinteractiveandinvolveatwo-wayconversationbetweencitizensandthelegislature,ratherthanbeinglimitedtoallowingthepublictoattendorhearpublicbudgetdeliberations.

Pleaseconsiderparticipationmechanismsthatthelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)hasputinplaceandisusingtoallowthepublictoparticipateintheirdeliberationsontheannualbudget.Thisincludesdeliberationsduringthepre-budgetphase(i.e.,whentheexecutiveisstillintheprocessofformulatingthedraftbudget)andthebudgetdiscussionsafterthebudgethasbeentabledtoparliamentandbeforeitisapproved.Inthecommentbox,pleasespecifyduringwhichstageofthebudgetcyclethelegislaturehasputinplaceapublicparticipationmechanism.

MechanismsthroughwhichmembersofthepublicreachouttoindividualMembersofParliamentasopposedtothelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)orunofficialhearingsorganizedbyasubsetofcommitteemembersshouldnotbeconsideredinansweringthisquestion.

Ifthereismorethanonemechanism,pleaseselectamechanismthatbestshows/reflectsthelegislature’seffortstoincorporatecitizensintotheformulationoftheannualbudget.Theparticipationmechanismscaninvolvearangeofdifferentissues,suchasrevenues,policyselection,andmacro-fiscalplanning(pleasenotethattheissueofcoverageiscoveredinasubsequentquestion).

Toanswer“a,”thelegislaturemustholdpublichearingswherecitizensareallowedtotestify.Thisanswerappliesonlyifthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscantestify(forexample,participationtakesplaceonafirst-come-first-servedbasis).

Answer“b”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;TestimonyisnotallowedfrommembersofthepublicorCSOs;butThereareothermeansusedbythelegislaturetoreceiveandcollectviewsfromcitizensandCSOsonthebudget,andthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscanprovideinput.Theresearchermustprovideevidencetosupportthepresenceofthosealternativeprocessesthroughwhichthelegislatureseeksinputsfromcitizens.Forexample,thereshouldbeapublicrecordindicatingthatviewsfromcitizensandthepublicweresought.

Answer“c”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;TestimonyisnotallowedfrommembersofthepublicorCSOs;Noothermeansareusedbythelegislaturetoreceiveandcollectviews/inputfromcitizensandCSOsonthebudget,butThelegislatureinvitesafewindividuals/groupstoprovideinput(throughpublichearingsorelsewhere)

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget

Answer:c.Yes,publichearingsareheld.Notestimonyfromthepublicisprovidedduringthepublichearings,andtherearenoothermechanismsthroughwhichpubliccontributionsarereceived,butthelegislatureinvitesspecificindividualsorgroupstotestifyorprovideinput(participationisnot,inpractice,opentoeveryone).

Source:CommitteeDailyBulletin,Vol.III,No.5,17thCongress,ThirdRegularSession,July31,2018:http://www.congress.gov.ph/legisdocs/cdb/cdb17-v3i5-20180731.pdf

Comment:Publichearingsareheld.Notestimonyfromthepublicisprovidedduringthepublichearings,andtherearenoothermechanismsthroughwhichpubliccontributionsarereceived,butthelegislatureinvitesspecificindividualsorgroupstotestifyorprovideinput(participationisnot,inpractice,opentoeveryone).



b.Yes,publichearingsareheld.Notestimonyfromthepublicisprovidedduringthepublichearings,butcontributionsfromthepublicarereceivedthroughothermeans.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoB.TheHORhaslivestreameditspublicdeliberationsonthenationalbudgetonFacebookwhichallowedthepublictoprovideinputtothehearingsviaFacebookreactionsandcommentsfromJulytoSeptember2018.LinktocompilationofHORlivestreamedvideos(checkuploadsfromJulytoSeptember2018):https://web.facebook.com/pg/HouseofRepsPH/videos/?ref=page_internalSamplelivestream:https://www.facebook.com/HouseofRepsPH/videos/1960580270670075/

ResearcherResponseTherevisedansweris"b"sincetheGovernmentReviewerprovidedthecitationwheretheHouseofRepresentativesprovidelifestreamedvideosofpublichearingsonthebudgetthroughFacebookwherepublicinputsarereceivedthroughalternativeprocesses.

IBPCommentWhileitisgreatthattheeventsarelive-streamed,thereisnoevidencethatthereisanyinteractionwiththepublic'sfeedbackintothepublicdeliberationsononthenationalbudget.Therefore,thehighestscoreboththelive-streamandthepublichearingcanreceiveisaC.Theresearcher'soriginalresponseisconfirmed.

137.Duringthelegislativedeliberationsontheannualbudget(pre-budgetorapprovalstages),whichofthefollowingkeytopicsdoesthelegislature’s(orrelevantlegislativebudgetcommittee)engagementwithcitizenscover?


1.Macroeconomicissues2.Revenueforecasts,policies,andadministration3.Socialspendingpolicies4.Deficitanddebtlevels5.Publicinvestmentprojects6.Publicservices

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Timeliness”.Pleaseconsidertherangeofmechanismscurrentlyusedbythelegislaturetopromotepublicparticipationduringlegislativedeliberationsontheannualbudget.

Pleasenotethatwhilethepublicengagementcan/maycoverothertopics,forthepurposeofansweringthisquestion,“keytopics”areconsideredtobeonlytheoneslistedabove.Ifthelegislature’sengagementwiththepubliccoverstopicsotherthanthesixlistedabove,pleasespecifythesetopicsinthecomments.


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget.



Comment:Thelegislaturedoesnothavepublicparticipationmechanismsduringitsdeliberationsonthenationalbudget.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Thelegislatureseeksinputonallsixtopics.Comments:Disagree.ItisrecommendedtochangetheratingofthisitemtoA.TheHouseofRepresentatives(HOR)livestreamedonFacebooktheDBCCbriefingontheNationalBudgetheldonJuly31,2018whichcovereddiscussionsonallkeytopicsmentionedunderthisitem.HORhasalsolivestreamedsucceedingbudgetdeliberationsonFacebookwhichallowedthepublictoprovideinputtothehearingsviaFacebookreactionsandcommentsfromJulytoSeptember2018.ThisprovidedaplatformforcitizenstoprovideinputtotheongoingdeliberationsviaFacebooklivereactionsandcomments.LinktoDBCCBriefingontheFY2019BudgetwithHOR,July31,2018:https://web.facebook.com/HouseofRepsPH/videos/10155308221797271/LinktocompilationofHORlivestreamedvideos(checkuploadsfromJuly

toSeptember2018):https://web.facebook.com/pg/HouseofRepsPH/videos/?ref=page_internal

ResearcherResponseIchangedthescoreto"a"afterlookingatthecitationonlivestreamedvideosofbudgetdeliberationsinCongress.

IBPCommentDespitethelivestreamedvideos,itdoesnotappearthattheHoRrequestsinputfromthepublicduringtheselivestream,onlybroadcaststheproceedings.Asthatdoesnotcountforthisquestion,theresearcher'soriginalresponseofDisconfirmed.

138.Doesthelegislatureprovidefeedbacktothepubliconhowcitizens’inputshavebeenusedduringlegislativedeliberationsontheannualbudget?

GUIDELINES:ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichthelegislatureprovidesinformationtocitizensonwhichpublicinputswerereceivedandhowinputswereusedduringlegislativedeliberations(pleasenotethatthesedeliberationscanrefertothepre-budgetandapprovalphases).By“writtenrecord”inthisquestion,wemeanadocumentthatisproducedandreleasedbythelegislature.

Answer“a”applieswhenthelegislatureprovidesawrittendocumentwith:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)and

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow).

Answer“b”applieswhenthelegislatureprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)and

-Anot-so-detailedreportonhowpublicinputswereusedornotused.Thisdocumentonlygivesageneralideaonhowthoseinputswereusedornotusedinlegislativedeliberationsontheannualbudget(pleasenotethatthesedeliberationsrefertothepre-budgetandapprovalphases).

Answer“c”applieswhenthelegislatureprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublic(e.g.,awrittentranscript)or


Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheannualbudget.



Comment:Thelegislaturedoesnotprovidefeedbacktothepubliconhowcitizens’inputshavebeenusedduringbudgetdeliberations.



139.Doesthelegislatureholdpublichearingsand/oruseotherparticipationmechanismsthroughwhichthepubliccanprovideinputduringitspublicdeliberationsontheAuditReport?

GUIDELINES:ThisquestionreflectstheGIFTprincipleon“Sustainability,”“Transparency,”and“Complementarity”andassessestheextenttowhichtheparticipationmechanism(s)usedbythelegislativeareinteractiveandinvolveatwo-wayconversationbetweencitizensandthelegislature,ratherthanbeinglimitedtoallowingthepublictoattendorhearpublicbudgetdeliberations.

Akeyconstitutionalroleofthelegislatureinalmostallcountriesistooverseethegovernment’smanagementofpublicresources.WhiletheSupremeAuditInstitutionisresponsibleforcheckingthegovernment’saccountsandpublishingtheoutcomeoftheiraudits,foraccountabilitypurposesitisessentialthatthelegislaturereviewsandscrutinizesthosereports,andchecksonwhethertheexecutiveistakingtheappropriatecorrectiveactionsbasedontheSupremeAuditInstitution’srecommendations.

Holdingpublichearingstoreviewauditfindingsallowsthepublictolearnmoreabouthowthegovernmenthasmanageditsresourcesforthebudgetyearsthathaveended,anddemandaccountabilityincaseofmismanagementandirregularities.Reviewinganddiscussingthosereportsinpublicisthereforeakeyresponsibilityofalegislature.

Pleasenotethatby“AuditReport”werefertothesameauditreportassessedinthetransparencysectionofthisSurvey,i.e.,oneoftheeightkeybudgetdocumentsthatallgovernments(inthiscase,theSupremeAuditInstitution)mustproduce,accordingtobestpractice.

Pleaseconsiderparticipationmechanismsthatthelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)haveputinplaceandusingtoallowthepublictoparticipateintheirdeliberationsontheAuditReport.

Mechanismsthroughwhichmembersofthepublicreachouttoindividualmembersofparliamentasopposedtothelegislature(bothinitswholeinstitutionoritsrelevantbudget/publicaccounts/financecommittees)orunofficialhearingsorganizedbyasubsetofcommitteemembersshouldnotbeconsideredinansweringthisquestion.

Toanswer“a,”thenationallegislaturemustholdpublichearingswherecitizensareallowedtotestify.Thisanswerappliesonlyifthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscantestify(forexample,participationtakesplaceonafirst-come-first-servedbasis).

Answer“b”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;Notestimonyisallowedfromthepublic;BUTThereareothermeansusedbythelegislaturetoreceiveandcollectviewsfromcitizensandCSOsonthebudget,andthelegislaturedoesnotexercisediscretionindeterminingwhichcitizensand/orCSOscanprovideinput.Theresearchermustprovideevidencetosupportthepresenceofthosealternativeprocessesthroughwhichthelegislatureseeksinputsfromcitizens.Forexample,thereshouldbeapublicrecordindicatingthatviewsfromcitizensandthepublicweresought.

Answer“c”shouldbeselectedifthefollowingapplies:

Thelegislatureholdspublichearingsonthebudget;Notestimonyisallowedfromthepublic;Noothermeansareusedbythelegislaturetoreceiveandcollectviews/inputfromcitizensandCSOsonthebudget,BUTThelegislatureinvitesafewindividuals/groupstoprovideinput(throughpublichearingsorelsewhere)

Answer“d”appliesiftherequirementsfora“c”responseorabovearenotmetorifthelegislaturedoesnotusepublicparticipationmechanismsduringitsdeliberationsontheAuditReport.


Source:Section101(GeneralProvisions),GeneralAppropriationsActFY2018,OfficialGazette,Vol.113,No.1,p.640:https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2018/VolumeI/GENPRO.pdf

Comment:Section101undertheGeneralProvisionsoftheGeneralAppropriationsActof2018providesthat"theSenateandtheHouseofRepresentativesshallconstituteaJointCongressionalOversightCommitteeonPublicExpenditureswhichshallprimarilymonitorcompliancebyagencieswiththerequirementsand/orconditionsintheutilizationofpublicfundsunderthisActandpertinentlaws."However,theCommitteedidnotorganizepublichearingswherecivilsocietyorganizationsormembersofthepubliccantestifyontheAuditReport.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:b.Yes,publichearingsontheAuditReportareheld.Notestimonyfromthepublicisprovidedduringthehearings,butcontributionsfromthepublicarereceivedthroughothermeans.Comments:Disagree.HORlivestreamsitscommitteehearings,includingpublicdeliberationswhereitexaminesAuditReportfindings.Tociteanexample,whenCongressreopeneditsprobeontheDengvaxiacontroversy,thepublicdeliberationswhichalsotackledtherespectiveCOAreportfindingswerelivestreamedviaFacebookonNovember20and21,2019.Thisallowedthepublictoprovideinputtotheon-goinghearingsvialiveFacebookreactionsandcomments.LinktocompilationofHORlivestreamedvideos(pleasecheckvideospostedonNovember20and21,2019):https://web.facebook.com/pg/HouseofRepsPH/videos/?ref=page_internalThevideoswereuploadedinsixpartsforeachday.SpecificFacebooklinks:https://web.facebook.com/HouseofRepsPH/videos/2158364477748626/https://web.facebook.com/HouseofRepsPH/videos/2195335154057454/https://web.facebook.com/HouseofRepsPH/videos/200365274234846/

https://web.facebook.com/HouseofRepsPH/videos/300902707300941/https://web.facebook.com/HouseofRepsPH/videos/1270619496409181/https://web.facebook.com/HouseofRepsPH/videos/264252200956120/https://web.facebook.com/HouseofRepsPH/videos/264252200956120/https://web.facebook.com/HouseofRepsPH/videos/122184462009530/https://web.facebook.com/HouseofRepsPH/videos/265600327490021/https://web.facebook.com/HouseofRepsPH/videos/265600327490021/https://web.facebook.com/HouseofRepsPH/videos/362039744599577/https://web.facebook.com/HouseofRepsPH/videos/368379270571600/https://web.facebook.com/HouseofRepsPH/videos/737073576642674/http://www.congress.gov.ph/press/details.php?pressid=11062

ResearcherResponseIagreetorevisetheratingfrom"d"to"b"basedonthewebandvideolinksprovidedbytheGovernmentReviewer.

IBPCommentPubliclivestreamsofthesemeetingsdonotcountasthegovernmentrequestinginputfromthepublicduringtheproceedings.Asthelinksprovideddonotshowanyrequestforinputs,noruseofanyinputsfromthepublic,thisresponseisconfirmedasD.

140.DoestheSupremeAuditInstitution(SAI)maintainformalmechanismsthroughwhichthepubliccansuggestissues/topicstoincludeintheSAI’sauditprogram(forexample,bybringingideasonagencies,programs,orprojectsthatcouldbeaudited)?

GUIDELINES:ThisquestionassesseswhethertheSupremeAuditInstitution(SAI)hasestablishedmechanismsthroughwhichthepubliccanprovidesuggestionsonissues/topicstobeincludedinitsauditprogram.Whendecidingitsauditagenda,theSAImayundertakeauditsforasampleofagencies,projects,andprogramsinthecountry;andsuchaselectioncouldbebasedoncomplaintsandsuggestionsmadebymembersofthepublic.Toreceivesuchsuggestions,theSAImaycreateformalmechanisms,likesettingupawebsite,hotline,oroffice(orassigningstafftoliaisewiththepublic).

Answer:a.Yes,theSAImaintainsformalmechanismsthroughwhichthepubliccansuggestissues/topicstoincludeinitsauditprogram.

Source:CommissiononAudit,CitizenParticipatoryAuditProgram:https://cpa.coa.gov.ph/

Comment:TheCommissiononAudit(COA)maintainstheCitizenParticipatoryAudit(CPA)mechanismwherecitizenauditorsandcivilsocietyorganizations(CSOs)cansuggesttopicstoincludeinitsauditprogram.Underthismechanism,CSOscanprovideinputsintheselectionoftheagencyorprojecttobeaudited.Theycanalsoprovideinputsinestablishingtheauditobjectivesandcriteria.



IBPCommentIBPconfirmsthegovernmentreviewer'sresponseabouttheCitizen'sDeskandFraudAlertUnitinCOA(https://cdrs.coa.gov.ph/)asthebasisforanAtothisquestion.TheCitizensParticipatoryAuditisaprocessforcollectingcitizenfeedbackonspecificauditinvestigations,notinputintotheauditprogram.ThereforethemechanismassessedhereistheCitizen'sDeskandFraudAlertUnit,whichbothcollectssuggestionsoffraudandallowsmemberstocheckonthestatusoftheirrequest.

141.DoestheSupremeAuditInstitution(SAI)providethepublicwithfeedbackonhowcitizens’inputshavebeenusedtodetermineitsauditprogram?

GUIDELINES:

ThisquestionreflectstheGIFTprinciplesof“Transparency”and“Sustainability”,andexaminestheextenttowhichtheSupremeAuditInstitutionprovidesinformationtocitizensonwhichpublicinputswerereceived,whichonesareusedtodeterminetheSupremeAuditInstitution’sauditprogram.By“writtenrecord”inthisquestion,wemeanadocumentthatisproducedandreleasedbytheSupremeAuditInstitution.

Answer“a”applieswhentheSupremeAuditInstitutionprovidesawrittendocumentwith:

-Theinputsreceivedfromthepublicand

-Adetailedreportonhowtheinputswereusedornotused(suchreportshouldincludeinformationonwhichinputswereusedornotused,why,andhow).

Answer“b”applieswhentheSAIprovidesawrittendocumentthatincludes:

-Theinputsreceivedfromthepublicand

-Anot-so-detailedreportonhowpublicinputswereusedornotused.ThisdocumentonlygivesageneralideaonhowthoseinputswereusedornotusedtodeterminetheSAI’sannualauditprogram.

Answer“c”applieswhentheSAIprovidesawrittendocumentthatincludes:

-Thereceivedfromthepublicor


Answer“d”appliesifrequirementsfora“c”responseorabovearenotmetorifmaintainformalmechanismsthroughwhichthepubliccansuggestsissues/topicstoincludeintheSAI’sauditprogram.

Answer:c.Yes,theSAIprovidesawrittenrecordwhichincludeseitherthelistoftheinputsreceivedorareportorsummaryonhowtheywereused.

Source:https://cpa.coa.gov.ph/cpa-wash-cagayan-de-oro-2017/

Comment:UndertheCitizenParticipatoryAudit(CPA)mechanism,theCommissiononAudit(COA)providesawrittenCPAreportwhichincludestheinputsreceivedfromcitizensandadetailedaccountofhowtheinputswereusedtodetermineitsauditprogram.


GovernmentReviewerOpinion:DisagreeSuggestedAnswer:a.Yes,theSAIprovidesawrittenrecordwhichincludesboththelistoftheinputsreceivedandadetailedreportofhowtheinputswereusedtodetermineitsauditprogram.Comments:ItisrecommendedtochangetheanswerherefromCtoA.TheresearcherhasalreadyaffirmedinhiscommentthattheCPAreportboththelistoftheinputsreceivedandadetailedaccountofhowcitizens'inputshavebeenconsideredtodetermineitsauditprogram.However,thisisnotconsistentandisnotreflectedintheresearcher'srating.https://cpa.coa.gov.ph/cpa-wash-cagayan-de-oro-2017/

ResearcherResponseTheratingischangedto"a"afterthecitationprovidedbytheGovernmentReviewer.

IBPCommentIBPconfirmsthegovernmentreviewer'sresponseabouttheCitizen'sDeskandFraudAlertUnitinCOA(https://cdrs.coa.gov.ph/)asthemechanismassessedinthisquestion.TheCitizensParticipatoryAuditisaprocessforcollectingcitizenfeedbackonspecificauditinvestigations,notinputintotheauditprogram,andisassessedinQ142.Citizensmaybeabletosubmitsuggestionsforparticipatoryaudits(https://cpa.coa.gov.ph/contact/)butthereisnoinformationonhowthoseinputshavebeenused.TheprojectselectionprocessfortheCPAisdescribedhere:https://cpa.coa.gov.ph/cpa-project-selection-criteria/ThatdocumentalsodoesnotshowhowcitizensuggestionsforCPAsareusedintheprocess.ThereforethemainmechanismassessedinthisquestionistheCitizen'sDeskandFraudAlertUnit,whichbothcollectssuggestionsoffraudandallowsmemberstocheckonthestatusoftheirrequest.IBPacceptsanswerchoice"c"basedontheCitizen'sDeskavailableontheCOA'swebsiteandcitizensabilitytocheckonthestatusandreceiveresponsestotheirticket.However,asthereisnoreportthatshowshow'all'requestshavebeenusedtodeterminetheauditprogram,thescoreisnothigherthanaC.

142.DoestheSupremeAuditInstitution(SAI)maintainformalmechanismsthroughwhichthepubliccancontributetoauditinvestigations(asrespondents,witnesses,etc.)?

GUIDELINES:Thisquestionmirrorsquestion140,butinsteadofcoveringpublicassistanceinformulatingtheSAI’sauditprogram,itfocusesonwhethertheSupremeAuditInstitutionhasestablishedmechanismsthroughwhichthepubliccanparticipateinauditinvestigations.Inadditiontoseekingpublicinputtodetermineitsauditagenda,theSAImaywishtoprovideformalopportunitiesforthepublicandcivilsocietyorganizationstoparticipateintheactualauditinvestigations,aswitnessesorrespondents.

Answer:a.Yes,SAImaintainsformalmechanismsthroughwhichthepubliccancontributetoauditinvestigations.

Source:

CommissiononAudit,COAResolutionNo.2018-006(AdoptionandInstitutionalizationoftheCitizenParticipatoryAuditintheCommissiononAudit),February21,2018:https://cpa.coa.gov.ph/coa-resolution-2018-006/

Comment:TheCommissiononAudit(COA)adoptedandinstitutionalizedtheCitizenParticipatoryAudit(CPA)throughCOAResolutionNo.2018-006onFebruary21,2018.Throughthispolicy,theCPAisrecognizedasamechanisminconductingauditswithcitizensandcivilsocietyorganizationsasmembersofCOAAuditTeamstomakethegovernmentmoreeffective,transparentandaccountable.



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