A

Accounts Payable. Obligations/commitments of national government agencies, whether current year and prior years, for which, services have been rendered/goods have been delivered or projects have been completed and accepted.

Activity. A work process which contributes to the implementation of a program, sub-program or project.

Administrative Positions. Refer to those positions performing general services, clerical, human resource management, financial management, records management, custodial and other related functions.

Administration of Lump-Sum Funds. Power granted to the Department of Budget to administer the Lump-Sum Funds appropriated in the General Appropriations Act, except as otherwise specified, including the issuance of Treasury Warrants covering payments to implementing agencies or other creditors, as may be authorized by the President.

Agency. Refers to any of the various units of the government, including an office, instrumentality or Government-Owned and/or Controlled Corporation (GOCC) that may not approximate the size of a department, but which nevertheless performs tasks that are equally important and whose area of concern is nationwide in scope (e.g. Other Executive Offices). For budget and accounting purposes, an agency is an entity under a department whose budget is directly released to the latter, and may include the summation of all budgets of sub-agencies listed under it, if any.

In budgetary language, agency also refers to not just the departments in the executive branch but to the thirty-four departments and agencies and its attached agencies, bureaus, offices, GOCCs and other instrumentalities in the three branches of government including the independent commissions.

Agency Budget Matrix (ABM). Disaggregation of the agency budget showing the needing and not needing clearance to determine the items to be issued special allotment release orders (SAROs) as well as the amount to be released comprehensively.

Agency Performance Review (APR). The process of determining the level of accomplishment of each agency in terms of physical outputs, income generated, and actual expenditures incurred in the production/delivery of goods and services to the public vis-à-vis the targets/budgets for the same period.

Allocative Efficiency. Refers to the achievement of efficiency through a better matching of public services to local preferences.

Allotment. Authorization issued by DBM to an agency, through Agency Budget Matrix (ABM) or Special Allotment Release Order (SARO), which allows the latter to incur obligation for specified amounts contained in a legislative appropriation.

Allotment Class. Classification of expenditures under the following categories:

1. Personal Services (100) 2. Maintenance and other Operating Expenses (200)3. Capital Outlays (300)

COMMON BUDGET TERMINOLOGIES AND CONCEPTS

Allotment Release Program (ARP). Overall ceiling of the total obligational authority which may be issued to the agencies for the year, from all fund sources.

Allocation to Local Government Units (ALGU). The share of Local Government Units (LGUs) from the internal revenue collections of the National Government (NG) based on a sharing scheme computed for each LGU provided for under the Local Government Code and other special laws.

Amortization. Principal repayments on loans, either domestic or foreign and whether on direct or assumed liabilities, made by the national government.

Appropriation. An authorization made by law or other legislative enactment, directing payment out of government funds under specified conditions or for specific purposes.

Appropriations, Automatic. Refers to appropriations programmed annually and, by virtue of outstanding legislation does not require periodic action by Congress.

An authorization made annually or for some other period prescribed by law, by virtue of standing legislation which does not require periodic action by the Congress of the Philippines. These are automatically and annually included in the National Expenditure Program of the National Government.

One-time legislative authorization to provide funds for a specified purpose, for which the amount may or may not be fixed by law, and is made automatically available and set aside as needed. Since it is already covered by a separate law, it does not require periodic action by congress, and need not be included in the legislation of annual appropriations. Among these items are: a) Debt Service (per P.D. No. 1967, R.A. 4860, and R.A. 245 as amended) - interest payments for foreign and domestic debt; b) Net Lending (PD 1177 and E.O. 292) - to GOCCs; c) Special Accounts - per specific laws, e.g., Wildlife Management Fund (DENR-R.A. 9147) sourced from fines etc. relating to the implementation of the Wildlife Act.

Appropriations, Committee on. The committee of the House of Representatives that has jurisdiction over “All matters directly and principally relating to expenditures of the national government including payment of public indebtedness, creation, abolition and classification of positions in government, and the determination of salaries, allowances and benefits of government personnel”.

Appropriations, Continuing. An authorization to support obligations for a specified purpose or project, even when these obligations are incurred beyond the budget year. Because MOOE and CO appropriations in the GAA are valid for two years, unobligated and unreleased appropriations for these budget items are valid until the end of their second year and are classified as Continuing Appropriations.

Appropriations, General. An authorization for incurring obligations during a specified budget year as contained in the GAA. The GAA is the legislative authorization that contains the new annual appropriations authorized by Congress in specific amounts for salaries, wages and other personnel benefits; MOOE; and CO to be spent for the implementation of programs and activities of all departments, bureaus and offices of government for a given year. Starting FY 2013, the GAA is valid up to the end of the calendar year.

An authorization for incurring obligations during a specified budget year. This pertains to the annual appropriations under the General Appropriations Act.

Appropriations, Reserves. Amount set aside to provide for contingencies and emergencies which may arise later in the calendar year and which would otherwise require deficiency appropriations.

Appropriations, Supplemental. Additional appropriation authorized by law to augment the original appropriations which proved to be inadequate or insufficient for the particular purpose intended due to current economic, political or social conditions. Supplemental Appropriations must also be supported by a certification of availability of funds by the Bureau of Treasury.

Assumed Liabilities. Domestic or foreign loans originally contracted or liabilities on securities issued by Government Financial Institutions (GFIs) or Government Owned or Controlled Corporations (GOCCs) which are transferred to and form part of the liabilities of National Government.

Audit Reports. A publication of the Commission on Audit, as the Supreme Audit Institution, that include:

Annual Financial Reports on the financial conditions and results of operations of the government, its subdivisions, agencies, and instrumentalities, including government corporations and local government units.

Annual Audit Reports of each government agency, local government unit, and government corporation, which, among others, contain auditors’ findings on the fairness of financial statements, other observations as well as recommendations.

Augmentation. Refers to additional funding from savings or by use of appropriations authorized in the General Appropriations Act to a program, activity, or project with an appropriation, which upon implementation or subsequent evaluation of needed resources, is determined to be deficient.

B

Balanced Budget. Occurs when revenues collected equal cash disbursements (excluding debt repayments and payments on nonbudgetary accounts) of the NG during a given year.

A budget is said to be balanced when revenues match expenditures or disbursements. When expenditures exceed revenues, the government incurs a deficit which may result in the following situations;

The government borrows money either from foreign sources or from the domestic capital. The government borrows money from the Bangko Sentral ng Pilipinas.The government withdraws funds from its cash balances in the National Treasury.

Balance of Payments (BOP). A system of accounts covering a particular period and is intended to record systematically:

a) flows of real resources, including the services of the original factors of production, between the domestic economy of a country and the rest of the world;

b) changes in the country’s foreign assets and liabilities that arise from economic transactions; and,

c) unrequited transfers, which are the counterpart of real resources or financial claims provided to, or received from, the rest of the world without requital.

Balance on Current Account. The sum of visible or merchandise trade balance (exports and imports services). This balance measures the net transfer of real resources between the economy of the Philippines and the rest of the world.

Bank Statement. Statement prepared by the government servicing banks showing the daily negotiated Modified Disbursement System (MDS) checks that are charged against the MDS central account and replenishments made by the Bureau of Treasury (BTr).

Bicameral Conference Committee. Refers to the committee created by the House of Representatives and the Senate to thresh out differences and arrive at a common version of the General Appropriations Bill.

Borrowings. Funds obtained from repayable sources, including loans secured by the government from financial institutions and other sources internal and external, to finance development projects and/or budget support.

Bottom-up Budgeting. An approach to preparing the budget proposals of agencies taking into consideration the development needs of poor cities or municipalities as identified in their respective local poverty reduction plans.

A participative approach started for the 2013 Budget to identify programs/projects addressing the development needs of poor cities/municipalities based on local poverty reduction plans, with the active participation of national agencies, civil society organizations and localities. These programs/projects are included in the budgets of participating national agencies.

A distinct fund or program in the 2013 and 2014 GAA. Renamed as Grassroots Participatory Budgeting Process.

Budget. An estimated schedule of expenditures, based on either obligations or cash concepts and sources of financing, either from revenues, borrowings or cash balance drawdowns.

Budget Accountability Reports (BARs). Reports on the agencies’ actual financial and physical accomplishments/performance for a given period.

Budget Call. A document issued by the DBM at the start of the budget preparation. It contains the following:

Budget Priorities Framework, which sets budget priorities, macroeconomic assumptions, and fiscal parameters for the Proposed Budget

National Budget Call, which sets guidelines, procedures, and prescribed forms in formulating budget proposals; a separate Corporate Budget Call is issued for government corporations.

Budget Deficit. The shortfall of revenues from disbursements excluding debt repayments and payments on budgetary accounts.

Budget, Proposed. A document submitted by the Executive to Congress for its review and approval. It is composed of the following documents;

President’s Budget Message, where the President explains to Congress the rationale behind the proposed Budget.

Budget of Expenditures and Sources of Financing (BESF) contains macroeconomic parameters and breakdown of expenditures and funding sources

National Expenditure Program (NEP) contains the Propose Budget in the form of proposed legislation; contains targeted outcomes and outputs with correspondingindicators alongside the financial plan.

Details of the Budget contains the disaggregation of programs, activities and projects of each agency.

Staffing Summary contains a summary of the staffing complement of each agency, including the number of positions and amounts allocated for these.

Budget, Enacted. The annual General Appropriations Act (GAA) as well as supplemental budgets that have been approved by Congress and signed by the President into law; it comes with the President’s Veto Message, where certain budget items are subjected to direct veto or conditional veto.

Budget, Delayed Enactment. The situation that occurs if Legislature fails to pass before the start of a new fiscal year a general appropriations bill under the deadline set by the Constitution.

Budget, Reenacted. The situation that occurs if the Legislature fails to pass a general appropriations bill for the ensuing year under the deadline set by the Constitution. The general appropriations law of the preceding fiscal year is deemed re-enacted and remain in force until the general appropriations bill is passed by Congress.

Budget Execution Documents (BEDs). Annual documents required at the onset of the budget execution phase, which contain the agencies’ targets and plans for the current year.

Budget of Expenditures and Sources of Financing (BESF). A document which reflects the annual program of estimated expenditures presented by the executive branch to the legislature for spending authority, accompanied by an estimate of expected sources of financing.

A document which reflects the annual program of estimated expenditures of the National Government accompanied by an estimate of expected sources of financing, which is constitutionally mandated to be submitted by the executive branch to the legislature to support the National Budget proposal.

Budgetary Power. The power of the president to determine the government needs for which he or she proposes corresponding appropropriations.

Budgetary Support. Proceeds of program loans and grants that are attributed to expenditure items previously authorized in the General Appropriations Act.

Budgetary Support to Government Corporations. The National Government assistance to GOCCs in the form of equity, subsidy, relent loan proceeds or advances for the servicing of debts guaranteed by the national government.

Budgetary Support to Government Corporations. Refers to either subsidies for operations or projects, equity contributions, and net lending and/or advances to Government-Owned or Controlled Corporations (GOCC) for loan repayment.

Build-Operate-and-Transfer. A contractual arrangement whereby the project proponent undertakes the construction, including financing of a given infrastructure thereof. It has several variances such as Build Operate and Own, Build Lease and Transfer, Build and Transfer, Build Transfer and Operate, etc.

C

Capital Expenditures or Capital Outlays. Expenditures for the acquisition of fixed assets and other goods and services the productive benefits of which extend beyond the fiscal year. These include acquisition of land and improvements, buildings and structures, equipment and furniture, information technology, transportation and equipment, machineries, public infrastructure and investments in the capital stock of Government Owned or Controlled Corporations and their subsidiaries.

Capital Inflows. Private and official inward flows of money to the country in the form of investments, grants and loans.

Capital Revenues. Proceeds from the sale of fixed or capital assets such as land, buildings, machinery, stocks and intangibles, including receipts of unrequited transfers for capital purposes from non-governmental sources.

Cash Advances. Advances granted to officers and employees which may be classified into: (a) regular cash advance – those granted to cashiers, disbursing officers, paymasters and/or property/supply officers for salaries and wages, commutable allowances, honoraria and other similar payments and petty cash operating expenses; (b) special cash advances – those granted on the explicit authority of the agency heads to duly designated disbursing officers or employees for other legally authorized purposes.

Cash Budget. Aggregate of revenues, borrowings and disbursements of the national government showing a cash deficit or surplus. It reflects the actual deposits and withdrawals of cash by the national government agencies to the Bureau of the Treasury.

Cash Disbursement Ceiling (CDC). An authority issued by the DBM to departments with overseas operations e.g., DFA and DOLE to utilize their income collected/retained by their foreign service posts (FSPs) to cover its operating requirements but not to exceed the released allotment to the said post.

Cash Operations Reports. A statement containing cash receipts, cash disbursement, the resulting surplus or deficit, and the corresponding domestic and foreign financing to cover such surplus or deficit.

Cash Release Program (CRP). Overall ceiling of disbursement authorities which may be issued to the agencies for a particular period.

Check Floats/Outstanding Checks. Checks issued by agencies which were not yet encashed by the payee.

Commitment Fee. A levy or charge imposed by creditors on the undrawn amount of the loan.

Commodity Grants. Donations/ contributions/gifts in kind received and which are subsequently monetized. The peso proceeds are thereafter deposited with the BTr to be used or expended for projects specified in the grant documents between the donor and the NG.

Commodity Loans. Foreign loans in the form of goods received which are subsequently monetized to finance programs and projects of implementing agencies. Peso proceeds are thereafter deposited with the BTr to be used or expended for projects specified in the loan documents.

Common Fund Concept. A budgetary procedure whereby cash allocation released to agencies may be used to cover payment of obligations made during the year, chargeable against available allotment, regardless of source.

Conditional Veto. A type of veto in which the President objects to parts of a bill and proposes amendments or set conditions that would make it acceptable.

Consolidated Public Sector Deficit or Surplus. The combined deficit of the NG, the Central Bank restructuring accounts, the major non-financial government corporations, the government financial institutions, the local government units, the social security institutions, and the Bangko Sentral ng Pilipinas.

Consolidated Public Sector Fiscal Position CPSFP). Refers to the net deficit or surplus calculated after summing-up the budget balances of all government entities, namely the national government, the non-financial government corporations,

Constructive Cash. Non-cash availment of foreign loans for utilization by NG agencies and GOCCs, i.e., payment to suppliers directly made by lending institutions.

Contingent Fund. Refers to requirements of new and/or urgent projects and activities that need to be implemented during the year; as well as to augment existing appropriations for local and foreign travels of the President. All releases require the President’s prior approval.

Conversion of GOCC Debts into Equity/Subsidy. A mechanism by which the government, through the BTr, converts into government equity and/or subsidy all outstanding debts of the GOCCs in the event any GOCC is unable to settle its obligations.

Cost of Qualified Borrowings. The weighted average interest paid by the World Bank or the Asian Development Bank on portions of its borrowings.

Counterpart Fund. The portion of the cost of a foreign-assisted project, which is, shouldered by the borrower as contribution to the completion of the project as stipulated in the foreign loan or grant agreement.

Current Operating Expenses. Refers to appropriations for the purchase of goods and services for current consumption or for benefits expected to terminate within the fiscal year.

Amount budgeted for the purchase of goods and services for the conduct of normal government operations within a budget year. Includes goods and services that will be used or consumed during the budget year.

Current Surplus. Excess of revenues over expenditures.

Custodial Funds. Refer to receipts or cash received by any government agency – whether from a private source or another government agency – to fulfil a specific purpose. Custodial receipts include receipts collected as an agent for another entity. These include trust receipts – both from an individual or corporation – that are required to be held by government until the outcome of a court’s case or procurement activity is determined, as well as cases where a department or agency holds receipts as a trustee for the fulfilment of some obligations.

D

Debt Amortization. The sum of principal repayments for loans payable by regular installments, and the annual contribution to the debt sinking fund for debts payable only upon maturity.

Debt Buy-Back Operation. A debt reduction scheme which involves the repurchase of outstanding debts by the government from the secondary market at a discount using its reserves or resources from official sources.

Debt Service. The sum of loan repayments, interest payments, commitment fees and other charges on foreign and domestic borrowings.

Debt Service – Interest Payments. Payments treated as part of the expenditure program representing cost of borrowed funds of the government.

Automatic appropriations for interest payments that the national government incurs from foreign and domestic borrowings.

Debt Service – Principal Payments. An off-budget item treated as such because it is merely a return of borrowed funds; hence, it is reflected as financing account.

Payment to service the principal components of foreign or domestic borrowings. Debt Service-Principal Payments is not included in the budget authorization process but is reflected usually in the last page of the General Appropriations Act. Debt-for-Assets Swap. The redemption by NG of its debt paper in exchange for an asset being disposed of by the Asset Privatization Trust (APT) with the BTr.

Decentralization. The dispersion or distribution of functions and powers from a central authority to regional and local authorities. It is synonymous to devolution. The concept of decentralization is the improvement of governance and public service delivery. Its main goal is to increase efficiency, both allocative efficiency and productive efficiency.

Deficit. Shortfall or deficiency of revenues over expenditures of the government.

Department. The primary subdivision of the Executive Branch responsible for the overall management of a sector or a permanent national concern with nationwide or international impact. A department is headed by a Secretary or an official with an equivalent position level. For budget and accounting purposes, Constitutional Offices, the Judiciary and the Legislature are categorized as department-level entities.

Department and agency and "department or agency. Refers to all departments, bureaus, offices, boards, commissions, courts, tribunals, councils, authorities, administrations, centers, institutes, state colleges and universities, and all other establishments and instrumentalities of the National Government as defined in the preceding paragraph.

Details of the Budget. The document that contains the disaggregation of programs, activities and projects of each agency.

Development Budget Coordinating Council (DBCC). An inter-agency committee tasked primarily to formulate the National Government’s fiscal program. It is responsible for the annual and multi-year budget planning. It is responsible for policy and decision-making on all fiscal matters.

The DBCC is composed of the Secretary of the Department of Budget and Management (DBM) as Chairman, Director-General of the National Economic Development Authority (NEDA) as co-chairman, the Executive Secretary, Secretary of the Department of Finance (DoF) and the Governor of the Bangko Sentral ng Pilipinas as members.

The DBCC was created under Executive Order No. 232 dated May 14, 1970.

Devolution. The transference of the rights, powers, property or responsibility to another, especially the surrender of powers to local authorities by a central government.

Department of Budget and Management (DBM). The executive department that is tasked with the formulation and implementation of the National Budget with the goal of attaining national socio-economic plans and objectives, and the efficient and sound utilization of government funds and revenues to effectively achieve development objectives.

The DBM is composed of the Fiscal Planning Bureau, Budget Operations Group and the Management and Support Services Group.

The DBM was created under Executive Order No. 21 dated April 25, 1936.

Direct NG Loans/Liabilities. Loans for obligations, either domestic or foreign, directly contracted by the NG.

Disbursements. Settlement of government obligations and/or accounts payable by cash; movement of cash from the BTr or from an authorized disbursing officer to the final recipient. Disbursement is synonymous with liquidation/settlement/payment of an obligation.

Disbursement Authority. Document issued to an agency authorizing them to liquidate obligations incurred.

Discretionary Expenditures. Refer to expenditure items that can be changed or adjusted defending on government spending priorities, available fiscal space and absorptive capacity of agencies. This type of expenditure is usually annually appropriated by Congress and enacted as the general appropriations law. By expense class, expenditure items that fall under this category include maintenance expenses ties up with the implementation of various programs/projects, tax expenditure fund and regular subsidy to GOCCs. Capital expenditures for both infrastructure and non-infrastructure programs/projects, including equity infusion to GOCCs are also considered under the discretionary portion of the budget.

Dividends. GOCC declaration and remittance of their annual net earnings as cash, stock or property dividends to the NG, at a rate prescribed by law.

Dubai Oil Price. A macroeconomic indicator that take into consideration changes in the price of Dubai crude oil. Local refiners in the country use the Dubai crude to calculate their retail prices. It is also used as a macroeconomic indicator as changes in the prices of crude directly affects the local economy.

E

E-Government Fund. Refers to expenditure for the implementation of strategic information and communications technology projects that enhance transparency, accountability and efficiency in government.

Earmarked Revenues. These identified revenues are required by statute to be used for designated activities, benefits, or purposes, and must be accounted for separately from government's general revenues.

Equity. National government investment in the authorized capital stock of government-owned or controlled corporations.

Excise Tax. Tax, either specific and/or ad valorem, imposed on selected articles manufactured or produced in the country for domestic sale or consumption or for any other disposition, and on selected imports.

Existing Revenue Measures. Collections from present revenue structure under the National Internal Revenue Code and Tariff Customs Code and non-tax sources (i.e., fees and charges and other receipts).

Expected result. Service, product, or benefit that will accrue to the public, estimated in terms of performance measures or targets.

Expenditure Program. The ceiling on the obligations that could be incurred by the government in a given budget year. The said ceiling is supported by estimated financial resources.

Expenditure by Object. Expense Class. Appropriations or expenditures categorized as Personal Services, Maintenance and Other Operating Expenses, Capital Outlay, and recently Finance Expenses.

Exports. These are data on export shipments which essentially include all goods leaving the country that are properly cleared through the BOC.

Export Taxes. Ad valorem levies on goods that are shipped out of the territorial jurisdiction of the Philippines.

Extraordinary Income. Collections derived from the repayment of loans and advances made by the government as well as from other non-recurring sources.

Extraordinary Receipts. Income which does not regularly accrue to the government, the collection for which is indefinite or does not depend entirely on the authority of the government.

F

Feasibility Studies Fund. Refers to expenditures for the conduct of feasibility studies by an agency proposing a project other than Public-Private Partnership projects – rather than being financed by prospective bidders. The new fund is administered by the National Economic and Development Authority.

Fees, Charges and Assessment. Amounts collected by government agencies for administrative and regulatory purposes (such as passport fees, driver’s licenses, court fees, building permit fees, assessment fees etc.) as well as payments exacted in exchange for goods and services.

Fiduciary Fund. A government fund where monies which have come into the possession of the government officer as trustee, agency or administrator, or which have been received as a guarantee for the fulfillment of some obligations are recorded and kept. Only the interest earnings of the fund principal, which is deposited in an authorized government depository bank, are utilized.

Financial Assistance to Metropolitan Manila Development Authority. Refers to national government subsidy in the form of regular appropriations as provided in the GAA which shall only be used to augment any deficiency in the consolidated funds of the MMDA to cover valid and authorized expenditures. Financial Restructuring. A mechanism to improve the GOCC’s financial condition through assumption by NG of the former’s non-performing assets.

Financing. The means by which a government provides financial resources to cover a budget deficit or allocates financial resources arising from a budget surplus.

Financing Program. Refers to projected revenues from both existing and new measures, the planned borrowings to finance budgetary transactions and the payment of debt principal falling due.

Financing Requirement. The portion of current and capital expenditures, plus lending minus repayments in the case of government and distributions of equity income to shareholders in the case of enterprises, that is not covered by the revenues and transfers received and must consequently be met through changes in liabilities and in claims on others, held for liquidity purposes in the case of government. It is equivalent to an overall deficit/surplus but carries the opposite sign.

Fiscal Policy. The part of government policy which is concerned with raising of resources through taxation and borrowing and deciding on the level and pattern of expenditures.

Fiscal Year. Refers to the period beginning with the first day of January and ending with the thirty-first day of December of each calendar year.

Foreign-Assisted Projects. Government projects which are wholly or partly financed by foreign loans and/or foreign grants.

Foreign-Assisted Projects Support Fund. A lump-sum budget provision for the expenditure requirements of foreign assisted projects.

Foreign Exchange Rate. The rate at which a currency is exchanged for another currency – in the case of the Philippines, the peso to the US dollar.

Any change in the exchange rate assumption will correspondingly change the peso cost of all expenditures paid in US dollars like foreign debt service – both repayment and interests – the regular operating requirements of foreign-based government offices like embassies, consulates, etc and other government contracts, which are to be settled using foreign currency.

The foreign exchange rate is part of the macroeconomic assumptions used in the preparation of the national budget.

Forward Estimates (FEs). Projections or estimation of the future costs of existing policies. It also serves as the validation instrument of determining the reasonableness of agency proposals on existing programs/projects/activities.

Forward Obligational Authority. Certificate of commitment or authority issued by the DBM to a NG agency certifying that funds shall be made available to cover the total project cost. This will serve as an assurance that the loan proceeds and the peso counterpart contribution are included in the long term capital program of the National Government.

Franchise Taxes. Taxes imposed on the special privilege or right conferred by the state on an individual or corporation, through legislation, to exercise certain powers and privileges such as the operation of public utilities.

Fund. Refers to an appropriation which is a legislative authorization to spend or an allotment which is an authorization by the DBM to various departments and agencies to obligate, or as actual cash available.

G

GAA-as-Release Document. A new policy regime that seeks to de-clog budget execution process. Budgets or appropriations except for those included in the Negative List - are already considered released to agencies as allotments when the GAA takes effect.

General Administration and Support. Activities and expenditure that deals with the provision of overall administrative management and operational support to entire agency operations.

General Appropriations Act. The legislative authorization that identifies new appropriations in terms of specific amounts for salaries, wages and other personnel benefits; Maintenance and Other Operating Expenses (MOOE), Financial Expenses (FEx) and Capital Outlays (CO) for the implementation of programs, projects and activities of all departments, bureaus and offices of government for a given year.

It is the detailed and comprehensive menu of programs, activities and projects (PAPs) that will be undertaken by the national government in any given year. The GAA defines by how much the programs are funded, through what agencies are these implemented, and in what manner are the funds released.

The GAA is a financial plan to pursue priority PAPs of the government in line with its economic growth and human development thrusts.

General Fund. Fund which is available for any purpose to which the legislative body may choose to apply, and is composed of all receipts or revenues which are not otherwise accruing to other funds.

General Provisions. Restrictions, regulations and limitations on the use of funds in the General Appropriations Act that applies to all departments and agencies. These usually contain major sections such as Receipts and Income, Expenditures, Personnel Amelioration, Release and Use of Funds and Administrative Procedures.

Government. The National Government, including the Executive, the Legislative and the Judicial Branches, and the Constitutional Commissions.

Government-Owned or Controlled Corporation. A stock or a non-stock corporation, whether performing government or proprietary functions, which is directly chartered by special law or, if organized under the general corporation law, is owned or controlled by the government directly or indirectly, through a parent corporation, to the extent of at least a majority of its outstanding capital stock of the outstanding voting capital stock.

Government Securities. Evidences of indebtedness of the Republic of the Philippines or its instrumentalities, government-owned and/or controlled corporations, or the Central Bank and must be freely negotiable and regularly serviced.

Government Servicing Banks. Financial institutions authorized, upon accreditation by the Monetary Board, to accept government deposits and perform banking services on behalf of government agencies. Presently, only three government financial institutions have been designated to be servicing banks of the MDS, namely: Land Bank of the Philippines, Development Bank of the Philippines, and Philippine Veterans Bank.

Grace Period. Period commencing from the time a loan agreement becomes effective to the time when the initial principal repayment becomes due.

Grants. All non-repayable transfer received from other levels of government, or from private individuals, or institutions including reparations and gifts given for particular projects or programs, or for general budget support.

Grassroots Participatory Budgeting Process (GPBP). Formerly known as Bottom-up Budgeting, is a budget reform measure aimed at giving communities a direct voice and vote in the budget process. Communities and local civil society organizations are engaged in the crafting of local poverty reduction plans.

A consultative process that provides an avenue for local basic sector organizations (BSOs), civil society organizations (CSOs), and other stakeholders to work hand in hand with their city or municipal governments in the crafting of the Local Poverty Reduction Plan (LRPAP). Projects identified under the plan are included in the National Budget.

Gross Domestic Product (GDP). The measure of the total output within the geographic boundaries of the country, regardless of the nationality of the entities producing the output.

The measure of the market value of the output of final goods and services produced by a national economy during a specific period of time, usually a year.

The measure of the total amount of goods and services produced within a country’s geographic borders.

The GDP is used as a major indicator in determining the macroeconomic targets and assumptions by the Development Budget Coordinating Committee in preparing the national budget.

Gross National Income (GNI). Consists of the total value of goods and services produced within a country (i.e. GDP) together with its income receive from other countries (notably interests and dividends), less similar repayments made to other countries (net income from international assets and gross exports less gross imports and indirect business taxes). NGI is equal to GDP less primary incomes payable to non-resident units plus primary incomes receivable from non-resident units. In other words, GNI is equal to GDP less taxes (less subsidies) on production and imports, compensation of employees and property income payable to the rest of the world plus the corresponding items receivable from the rest of the world.

Gross National Product (GNP). The measure of the total market value of all final goods and services produced in an economy in a given year. It takes into account everything produced by Philippine nationals or companies within or without the country and includes remittances by Overseas Filipino Workers (OFWs).

The GNP is used as a major indicator in determining the macroeconomic targets and assumptions by the Development Budget Coordinating Committee (DBCC) in the preparation of the national budget.

Guaranteed Obligations. Debt obligations for which a juridical entity assumes secondary liability as guarantor. If the primary obligor fails to pay, the guarantor becomes liable for the amount due.

I

Informing power. The power and responsibility of the president to render his or her accomplishment report and to outline priority programs, plans and agenda of the government. The information he or she gives serves as the basis for the legislative enactment of laws including the national budget.

Implementing Agency. A unit of government that implements development projects. An implementing agency can be the Office of the Secretary of a department, an agency attached to a department, a line bureau or a government owned or controlled corporation.

Imports. These are data on import arrivals which essentially include all goods entering any of the seaports or airports of entry of the Philippines properly cleared through customs or remaining under customs control.

Import Duties and Taxes. Taxes and levies, generally in ad valorem form, imposed on goods that enter the country, for the purpose of protecting locally manufactured goods of similar nature, or for the purpose of generating revenues under the Tariff and Custom Code. Includes specific taxes on imported goods, advance sales tax and compensating tax on imported goods.

Income from Public Enterprises and Investments. Receipts paid to the government from all properties and investments income such as dividends, interest, rent and royalties.

Indirect Tax. Tax levied on the sale of, use of or expenditure on goods and services, such as excise tax, sales tax, VAT, import duties, export tax, documentary and stamp taxes, forest charges, and others.

Inflation. Refers to the persistent upward movement in the general price level resulting in the diminishing purchasing power of a given nominal sum of money. The inflation rate is the annual rate of change in the general price level often measured by the Consumer Price Index.

Infrastructure Outlays. Expenditures for roads, bridges, airports, and other similar capital goods which have productive benefits that extend the fiscal year.

Internal Revenue Allotment. The account created under PD 144, as amended, representing the portion of total national government revenues which accrue to the local governments. Includes the local government share in the specific tax on oil products authorized by PD 436, as amended. This share has been revised under the Local Government Code of 1991 and is now termed as internal revenue allotment.

International Commitments Fund. Refers to expenditure support to government commitments to international organizations, such as membership contributions and the hosting of international conferences. All requests are submitted to the Department of Foreign Affairs and approved by the President.

Interest. Charges imposed as a consequence in the use of money. It is deemed synonymous with discount when applied to government securities.

In-Year Reports. Periodic reports that provide a snapshot of the budget implementation during the budget year, as defined by the Open Budget Index. It includes the following:

Agency Budget Accountability Reports are submitted by agencies to report on how their funds are spent alongside their accomplishments. Agencies must publish these in their respective website via their Transparency Seals.

Budget Reports by the DBM, published on its website, and includes Status of Allotment Releases, Statement of Allotments, Obligations and Balances, Reports on the Utilization of Cash Allocation, National Government Fiscal Reports published by the Department of Finance and the DBM on a regular basis to report on the status of government’s revenue collection, expenditures, deficits, and debt including, Reports by the DoF that include monthly Cash Operations Report (BTr), reports on collections (BIR and BoC) and Outstanding Debt (BTr), and Assessment of Disbursements published monthly by the DBM providing a more detailed reporting on government’s disbursement performance.

Itemized Positions. Approved positions in the regular personnel plantilla of all agencies of the national government.

J

Judiciary Development Fund. Created by Presidential Decree No. 1949; a fund sourced from legal fees to augment the allowances of the members and personnel of the Judiciary and to finance the acquisition, maintenance, and repair of office equipment and facilities.

K

Key Result Area. The part in the Strategic Objectives in the GAA that states the specific and concise objectives of the agency or department.

Key Positions. Refers to executive, managerial, chief of division or equivalent position in a department or agency.

L

Line Item Veto. The power of the president or other elected executive to reject individual provisions of a bill.

Loan Availments/Proceeds. Amount drawn, in cash or in kind, against existing or new loan commitments.

Locally-Funded Projects. Projects financed out of revenue collections and domestic borrowings.

London Interbank Offered Rate (LIBOR). This is the rate offered to prime borrowers in the internal capital market based in London, which serves as the basis for most foreign interest rate quotations.

M

Maintenance and Other Operating Expenses (MOOE). Outlays for the purchase of goods and services (e.g. supplies, materials, transportation and travel, utilities, repairs, professional services, etc) in order to conduct normal government operations and to implement its programs.

Major Final Outputs (MFOs). Goods and services that a department or agency are mandated to deliver to external clients through the implementation of programs, activities and projects. It is also the quantification of the targets and key result areas and is the basis for the analyses of the performance of each agency and department.

Mandate. The part in the section of the Strategic Objectives that describes the legal character, mandate and functions of a particular agency or department.

Medium Term Philippine Development Program (MTPDP). The country’s economic blueprint for the attainment of the economic growth and development goals and targets. Also called the Philippine Development Plan, the MTPDP usually encompasses a six-year time frame.

Medium Term Expenditure Framework (MTEF). A planning budgeting framework of the government which provides a medium term three year perspective to decision making process during budget preparation.

Mid-year Report. A new report by the Development Budget Coordination Committee (DBCC) on the macroeconomic environment and revenue and expenditure performance midway into the fiscal year, as well as the outlook for the remainder of the year.

Miscellaneous Income. Non-tax revenues not elsewhere classified such as proceeds from the sale of goods or confiscated merchandise, inventory adjustments, and waste materials.

Miscellaneous Personal Services (MPBF). Appropriations for the “Payment of Other Benefits”. This includes payments for deficiencies in authorized salaries, bonuses, allowances, associated premiums and other similar benefits for National Government employees, including Magna Carta Benefits of Public Health Workers, Scientists, Engineers and Researchers in government.

Mission. The part in the Strategic Objectives in the GAA that states the end goals of the agency or department. Modified Disbursement Scheme (MDS). A procedure whereby disbursements by NG agencies chargeable against the account of the Treasurer of the Philippines are effected through GSBs.

Monetary Policy. The part of economic policy which regulates the level of money or liquidity in the economy to achieve desired policy objectives, such as inflation control, improvement of the BOP or growth of the economy.

Monthly Cash Program (MCP). The estimated monthly disbursement requirements of the operating units (OUs) of departments/agencies.

Motor Vehicle User’s Charge (MVUC). An earmarked revenue whereby fixed percentages are automatically appropriated to the Office of the Secretary of the Department of Public Works and Highways and the Department of Transportation and Communications.

Multi-Year Obligational Authority - (MYOA). An authority issued by the DBM to enable an agency to enter into a multi-year contract whether for locally funded projects (LFPs) or foreign assisted projects. (FAPs).

N

National Disaster Risk Reduction Management Fund (Calamity Fund). Refers to relief, reconstruction and other works or services related to natural calamities, epidemics, crises resulting from armed conflicts and other catastrophes. Releases may only be made upon the recommendation of the National Disaster Risk Reduction and Management Council (NDRRMC) and the approval of the president.

National Expenditure Program (NEP). The document that contains the Propose Budget in the form of proposed legislation; contains targeted outcomes and outputs with corresponding indicators alongside the financial plan.

This volume of the President's Budget is submitted to assist Congress in the review and deliberation of the proposed national budget for the legislation of the annual appropriations measures for the next fiscal year. It contains the details of the government's proposed program and is presented into four (4) parts, namely: Part I - National Government Budget; Part II - Budgets of the three (3) Energy Corporations; Part III - General Provisions; and, Part IV - Detailed Annexes.

National Government budget. Refers to the totality of the budgets of various departments of the national government including support to Local Government Units (LGUs) and Government-Owned and/or Controlled Corporations (GOCCs). It is what the national government plans to spend for its programs and projects, and the sources of what it to projects as funds, either from revenues or from borrowings with which to finance such expenditures.

It also includes income, expenditures, sources of borrowings of the National Government that are used to achieve national objectives, strategies and programs.

Negotiated Checks. Modified Disbursement Scheme or MDS checks already paid/encashed by government servicing banks.

Net Income (Loss). The difference between revenues and expenses, reflecting the results of operations of corporations for a given period. A positive balance indicates a net income while a negative balance, a net loss.

Net Lending. Advances by the national government for the servicing of government guaranteed corporate debt during the year, net of repayments on such advances. This includes loans outlays or proceeds from program loans relent to government corporations. In short, these are payments for debts of the private sector.

New General Appropriations. Annual appropriations for incurring obligations during a specified budget year, as listed in the General Appropriations Act (GAA).

Non-Budgetary Accounts. Trust liabilities, securities unloaded or purchased, sinking fund, and other accounts not included in the NG budget.

Non-Cash Availment Authority. Authority granted by DBM to government agency to account for the cash equivalent of loan proceeds availed of through supplier’s credit/constructive cash.

Non-Fiscal Transaction. Items that represent expenditures that are non-fiscal in character but have been carried in the expenditure program of the national government over the last four years. These include debt payments on assumed liabilities, interest payment on CB open market support transactions, the debt reduction program, and the subsidy for the Oil Price Stabilization Fund.

Non-NCA Expenditures. Budgetary accounts which are paid without requiring the issuance of notices of cash allocation during the budget year in consideration.

Non-Tax Revenues. Revenues collected from sources other than compulsory tax levies. Includes those collected in exchange for direct services rendered by government agencies to the public, or those arising from the government's regulatory and investment activities.

These includes Bureau of Treasury's income derived from investment activities particularly on interests on bond holdings, gain on foreign exchange, interests on deposits and other proprietary government ventures.

Non-tax revenues also include inputs from foreign grants and income derived from privatization of government utilities.

Examples of collecting agencies for non-tax revenues are President’s Offices, CICT, National Computer Center, National Commission on Indigenous Peoples, Agricultural Training Institute, others.

Notice of Cash Allocation (NCA). Cash authority issued quarterly by the DBM to central, regional and provincial offices and operating units to cover the cash requirements of the agencies.

O

Obligations. Liabilities legally incurred and committed to be paid for by the government either immediately or in the future.

Refers to an amount committed to be paid by the Government for any lawful act made by an authorized officer for and in behalf of the government.

Obligation Budget. Programmed amount out of total appropriations to enable the national government to contract delivery of goods and services in a given fiscal period.

Off-Budget Items. Any expenditure item which is not part of the National Expenditure Program. Principal repayments are considered off-budget items.

Off-Budget Funds. Refer to receipts for expenditure items that are not part of the National Expenditure Program, and which are authorized for depositing in governmental financial institutions. These are categorized into: Retained Income/Receipts and Revolving Funds.

One-Fund Concept. The policy enunciated through Presidential Decree No. 1177 which requires that all income and revenues must accrue to the General Fund and thus can be freely allocated to fund programs and projects of the government as prioritized.

Open Market Operations. The most important instrument of a central bank or monetary authority for controlling the supply of money and credit in the economy through the purchase or sale of government securities in the open market.

Open Market Support. The assistance provided by the national government to the Central Bank through the flotation of national government debt instruments, the proceeds of which are deposited with the Central Bank. The timing and magnitude of the flotation’s are used to control the liquidity of the financial system.

Operating and Service Income. Nontax revenues generated in the exercise of the administrative and regulatory functions by the national government. Includes hospital income, tuition fees of government schools and admission fees to government museums and parks. Also includes revenues realized by government agencies from their business undertakings called for by the nature of their functions, and those income generated by social security agencies in the form of premiums earned from life and non-life insurance.

Operating Expenditures. Costs incurred by Government in the exercise of its administrative, regulatory, or service functions.

Operating Program. The portion of the expenditure program for a given fiscal year used for the delivery of goods and services. This includes Personal Services (PS), Maintenance and Other Operating Expenses (MOOE), and Capital Outlays (CO).

Operating Revenues. Receipts from the conduct of regular business operations.

Operating Units. Organization entities charged with carrying out specific substantive functions or with directly implementing programs/projects of a department or agency, such as line bureaus and field units.

For budget and accounting purposes, these are organizational units under a Department or an Agency which may be:

1. Directly receiving budgets from DBM, including SUCs2. Recipients of fund transfers from higher level OUs, and/or3. Authorized to collect revenues.

Operations. Consist of programs and corresponding expenditures which relate to the main purpose for which an agency has been created. It involves direct production of goods or delivery of services or direct engagement in regulations.

Organizational Outcome. The part in the Strategic Objectives in the GAA that describes the expected or targeted performance of a department or agency.

Organizational Performance Indicator Framework (OPIF). An approach to expenditure management that directs resources towards results or major final outputs and measures agency performance by key quality and quantity indicators.

OPIF Logical Framework. A planning tool which provides a graphical presentation of the linkage among societal and sectoral goals, organizational outcomes, major final outputs, and the programs, activities, and projects undertaken to produce or deliver goods and services.

Other Executive Offices (OEOs). Agencies, GOCCs, offices that are directly under the Office of the President that were created by law or executive order as special bodies to carry out the mandate of the executive department and implement a specific function.

Outstanding Checks / Check Floats. Checks issued by agencies (in the current or previous year) which are not yet presented by the payee to the bank for payment.

Outstanding Debt. Unpaid Obligations

P

Paid-in Capital. The amount paid for the subscription of capital stock.

Paris Club. The major forum within which debtor countries negotiate the restructuring of debts owed to foreign government or their export agencies including the U.S., Great Britain, Japan, and European countries.

Performance Indicator. Characteristic of performance such as quality, quantity, timeliness and cost that measures how efficiently a department or agency delivers its Major Final Outputs (MFOs).

Pension and Gratuity Fund. Refers to payment of pensions of police, military and other uniformed personnel that are fully subsidized by the national government; retirement and terminal leave benefits; separation benefits and incentives; and monetization of leave credits.

Performance Indicator. A predetermined measure of the results of an activity against a standard of performance required to achieve a set of policy objectives within a given period.

Performance Target. A predetermined level of quantity, quality, timeliness and cost of outputs.

Personal Services. Also called Personnel Services. Provisions for the payment of salaries, wages and other compensation (e.g., merit, salary increase, cost-of-living-allowances, honoraria and commutable allowances) of permanent, temporary, contractual, and casual employees of the government.

Peso-Denominated Transactions. Involves cash obligations and receipts expressed in the local currency.

Philippine Inter Bank Offered Rate (PHIBOR). An interest rate reference that is expected to replace the Treasury Bill yield as the basis for the lending and pricing commercial papers.

Planning-programming-budgeting system (PPBS). A concept that stresses the importance of establishing a strong linkage between planning and budgeting. It emanates from the policy of the government to formulate and implement a national budget taht is an instrument of national development, reflective of national objectives, strategies and plans. Under the PPBS concept, the budget is anchored on the degree by which the accomplishment of economic plans and the attainment of target contained in the Medium-Term Philippine Development Plan (MTPDP) and the Medium-Term Public Investment Program (MTPIP) are supported.

President’s Budget Message. The budget document where the President explains to Congress the rationale behind the proposed Budget.

President’s Veto Message. The budget document where the President signals his approval of the general appropriations act and his disapproval, if any, of line items contained therein.

Principal Payment. The sum of the first component of debt amortization, i.e., principal repayments for loans payable in regular installments and actual releases out of the sinking fund for the eventual payment of debt. These are the cash outlays from the BTr in payment of principal amounts of foreign and domestic borrowings.

Priority Development Assistance Fund. Allocation for projects and programs nominated by legislators for the benefit of their constituents. Also known as “pork barrel”, this fund was declared unconstitutional by the Supreme Court.

Productive Efficiency. Efficiency achieved through increased accountability of local governments to citizes, fewer levels of bureaucracy and better knowledge of local costs.

Program. A homogeneous group of activities necessary for the performance of a major purpose for which a government agency is established, for the basic maintenance of the agency’s administrative operations or for the provisions of staff support to the agency’s administrative operations or for the provisions of staff support to the agency’s line functions.

Refers to the functions and activities necessary for the performance of a major purpose for which a government agency is established.

Programs are basically composed of three line items: General Administration and Support, Support to Operations and Operations.

Program Loan. A multi-purpose foreign loan not used to finance a specific project but is conditioned on basic changes in economic, monetary or fiscal policies, among others.

Program/Project Assessment. A review of accomplishments against target objectives.

Programmed Appropriations. Appropriations supported by corresponding resources, that is, they already have definite funding sources and are readily implementable.

Total appropriations available for release during the year.

Project Cost. The total amount necessary to implement and complete a project over a given period of time.

Project Loan. A foreign loan obtained to finance a specific project.

Projection. Data which approximates future event, derived from statistics/econometric tool.

Project(s). Refers to a component of a program covering a homogenous group of activities that results in the accomplishment of an identifiable output.

Special agency undertakings which are to be carried out within a definite time frame and which are intended to result some pre-determined measure of goods and services.

Projects are classified into locally-funded projects and foreign-assisted projects.

Projects are deemed terminated with the completion of the project or the lack of feasibility or probability of attaining said objectives.

Property Taxes or Taxes on Property. Taxes on the ownership of wealth or immovable properties levied at a regular intervals and on transfer of real or personal properties.

Public Debt. Includes the total indebtedness of the National Government, local government and government corporations or financial institutions from industries, corporations or financial institutions, whether private or government, foreign or domestic, which are fully supported and guaranteed by NG.

Public Sector Borrowing Requirement (PSBR). The deficit of the national government and the 14 monitored government corporations less the budgetary assistance to the monitored corporations in the form of equity contributions and net lending. This is one of the performance criteria being monitored by the International Monetary Fund.

R

Receipts. The sum of revenues and gross borrowings for a given period.

Receipts Automatically Appropriated. Receipts from grants, donations, insurance proceeds, and other sources which by law may be immediately used by the agency without undergoing the usual legislative process.

Regional Development Council (RDC). It is the primary institution that coordinates and sets the direction of the region’s economic and social development effort It serves as a forum to relate and integrate local efforts with national development activities. It serves as NEDA Board’s counterpart at the regional level.

The RDC was established on December 31, 1972 based on Letter of Instruction (LOI) no. 22 as part of the 1972 Integrated Reorganization Plan.

Regional Office. An organizational subdivision, headed by a Regional Director, that is responsible for the performance of an entity’s functions within a region. In effect, an RO is a miniature department or agency and is responsible for all activities in the area under its jurisdiction.

Regular Budget. The line item budgets of thirty-four line departments and agencies covering all the line agencies of the Executive, Judiciary, Legislative branches of government including the independent commissions.

Refers to the current expenditures and the capital outlay for the operation and implementation of programs and projects of various government departments and agencies

Relent Loans. Loans directly contracted by the NG, the proceeds of which are relent to GOCCs, GFIs, LGUs, or the private sector.

Reserve Control Account.

Resources. In budgeting, a term frequently used to refer to revenues, gross borrowings, and free or unencumbered cash balances.

Retained Income/Funds. Collections that are authorized by law to used directly by agencies for their operation or specific purposes. These include but are not limited to receipts from:

State Universities and Colleges (SUCs) – tuition and matriculation fees and other internally generated receipts;

Department of Health – hospital income such as hospital fees; medical, dental and laboratory fees; rent income from the use of hospital equipment and facilities; proceeds from sale of hospital therapeutic products, prosthetic appliances and other medical devices; diagnostic examination fees; donations in cash from individuals or non-governmental organizations satisfied with hospital services.

Retirement and Life Insurance Premiums. The share of the national government in the premium payments to Government Service Insurance System (GSIS), for the life insurance and retirement benefit fund of government employees as well as pensions of former presidents and widows of former presidents as mandated by R.A. 2087 and R.A. No. 5059.

Revenue. A cash inflow which does not increase the liability of the government.

Revenue Program. Target collections by tax and non-tax accounts of collecting agencies.

Revolving Fund. Receipts derived from business-type activities of departments/agencies as authorized by law, and which are deposited in an authorized government depository bank. These funds shall be self-liquidating. All obligations and expenditures incurred because of these business-type activities shal be charged against the Revolving Fund.

S

Salary Standardization Scheme. Application of the principle of “equal pay for substantially equal work” which effectively abolished existing pay differentials among government agencies and standardize compensation of all comparable positions.

Savings. Refer to portions or balances of any programmed appropriation in this Act free from any obligation or encumbrance which are: (i) still available after the completion or final discontinuance or abandonment of the work, activity or purpose for which the appropriation is authorized; (ii) from appropriation balances arising from unpaid compensation and related costs pertaining to vacant positions and leaves of absence without pay; and (iii) from appropriation balances realized from the implementation of measures resulting in improved systems and efficiencies and thus enabled agencies to meet and deliver the required or planned targets, programs and services approved in the General Appropriations Act at a lesser cost.

School Building Program (SBP). Also known as the DepEd School Building Program, is an item under the Special Purpose Funds (SPF).

Sector Outcome. The part in the Strategic Objectives in the GAA that expresses quantifiable objectives of an agency or department for the fiscal year.

Selective Taxes on Services. Taxes imposed on persons and entities engage in providing services to the customers such as miller’s tax imposed on proprietors or operators of rope factories, coconut oil mills and desiccated coconut factories; the contractor’s tax imposed on contractors, proprietors of dockyards, general construction and the like; the percentage tax on hotels, motels, restaurants, caterer’s and others; percentage tax on common carriers whether by air, land or water services and keepers of garages; taxes on stock, real state commercial, customs and immigration brokers or cinematographic film owners, lessors or distributors; and taxes on dealers of securities and lending investors. Also includes taxes imposed on gross receipts by all banks and financial institutions; taxes imposed on premiums received by insurance companies; and amusement taxes.

Senate Committee on Finance. The Committee of the Senate that has jurisdiction over “All matters relating to funds for expenditures of the National Government and for the payment of public indebtedness, auditing of accounts and expenditures of the National Government, claims against the government, inter-governmental revenue sharing, and in general all matters relating to public expenditures.

Simplified Fund Release System (SFRS). A standardized system of releasing allotments based on a predetermined categorization or disaggregation of agency budgets. Under this system, the category of the expenditure item determines the timing and the magnitude of the release of agency allotments. Releases, in turn, are made in accordance with a prioritization scheme consistent with government’s overall development policy.

Sinking Fund. A fund that is established for the purpose of repaying a debt with a lumpy maturity schedule. Payment to a sinking fund are generally vested in safe securities until the debt reaches maturity. By this time, the cumulative payments to the sinking fund and its interest earnings should match the amount of principal to be paid.

Special Accounts in the General Fund (SAGF). A fund whereby proceeds of specific revenue measures and grants earmarked by law for specific priority projects are recorded. These sources are automatically appropriated.

Special Allotment Release Order (SARO). A specific authority issued to identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated. It shall cover expenditures the release of which is subject to compliance with specific laws or regulations, or is subject to separate approval or clearance by competent authority.

Special Allowance for the Judiciary. Created by Law (RA 9227), granting additional compensation in the form of special allowances for justices, judges and all other positions in the judiciary with the equivalent rank of justices of the court of appeals and judges of theregional trial court equivalent to 100 percent of the basic monthly specified for their respective salary grades; sourced from from legal fees.

Special Drawing Rights (SDR). Unconditional reserve assets that are created by the International Monetary Fund to supplement existing reserve assets SDRs represent asset that have no corresponding liability.

Special Provisions. The part of the GAA that pertains to the regulations, restrictions and limitations on the use of funds to particular appropriations of each department and agency.

Special Purpose Funds. Appropriations in the GAA provided to cover expenditures for specific purposes for which recipient agencies/departments have not yet been identified during budget preparation. These shall be available for allocation to agencies/departments in addition to built-in appropriations, during budget execution, pursuant to special conditions per SPF. Among such SPFs are Calamity Fund, Contingent Fund, E-Government Fund, International Commitments Fund, Priority Development Fund, Pension and Gratuity Fund.

Unprogrammed SPFs, e.g. BSGC, FAPS, are provided to cover deficiencies, i.e., requirements cannot be fully accommodated, vis-a-vis provisions in the agency specific budgets, subject to availability of excess/unexpected inflow of revenues / financing sources.

Budget items that are non-permanent in nature, an appropriations designed to augment the Regular Budget of selected departments and agencies, and subject to the approval of the president.

Lump-sums included in the GAA which are not within the approved appropriations of De-partments/Agencies/Lower Level Operating Units, and which are available for allocation to any Department/Agency/Lower Level Operating Unit or Local Government Unit for a specific purpose, as may be duly approved in accordance with special provisions on the use of these funds.

Items in the National Budget allocated for specific purposes. They are usually lump sums in nature, as the recipient departments only identify the specific programs and projects during budget execution. They are released to agencies after conditions have been complied with.

Staff Bureau. A principal subdivision of a department which primarily performs policy, program development, and advisory functions.

Staffing Summary. The document that contains a summary of the staffing complement of each agency, including the number of positions and amounts allocated for these. The Staffing Summary also includes Key Positions, Technical Positions, Support to Technical Positions and Administrative Positions with corresponding salary grades.

Strategic Objectives. The set of information in the GAA that informs on the purpose of the funds, the outputs in terms of goods and services to be produced, the intended outcomes that these goods and services will achieve and the cost of these programs and projects.

Strategic Objectives are presented in the Mandate, Vision, Key Result Areas, Sector Outcome, and Organizational Outcome that precede the appropriations for each department and agency. The inclusion of Strategic Objectives in the form and structure of the GAA is one of the changes in the national budget. Supplemental Appropriations. All appropriation proposal shall be included and considered in the budget preparation process. After the President shall have submitted the Budget, no supplemental appropriation measure supported from existing revenue measures shall be passed by the National assembly. However, supplemental or deficiency appropriations involving the creation of new offices, programs or activities may be enacted if accompanied and supported by new revenue sources.

Support to Operations. Consists of programs and corresponding expenditures which provide staff, technical and/or substantial support to operations, but do not produce goods or deliver services or directly engage in regulation.

Support to Technical Positions. Refer to those position which provide staff or technical support functions to key and technical positions but do not have frontline service functions.

Subsidy. A grant or financial aid, usually by a government body, to some other persons or institution for general purposes. When applied to GOCCs, it may also refer to amounts used to cover operational expenses not supported by corporate revenues or to cover corporate deficits and losses.

Surplus. Excess of revenues over expenditures.

Surplus Budgeting. Budget policy that encourages economic growth. The less the govern-ment borrow from the public, the lesser the pressure on interest and inflation rates and the more funds are made available in the financial market. Such funds may be used by business-men to build factories, hire workers, buy equipment and open more employment opportu-nities. By keeping more funds in the hands of the private sector rather than competing for credit, the government helps make financing available for families who want to own homes or support their children’s education.

The government also needs to generate a budget surplus to repay the huge debt it has ac-cumulated over the years. The reduction of the national debt will correspondingly lessen government’s requirement for interest and principal payments.

T

Target. Goal or specific objective of a program.

Tax Expenditure Subsidy/Fund. Subsidy given to national government agencies, government corporations and local government units in lieu of payment of taxes and custom duties. This fund does not involve actual cash disbursement.

Tax on Property. Tax imposed on the ownership of wealth or immovable properties and on the transfer of real or personal properties, both tangible and intangible.

Tax Remittance Advice (TRA). Document which agencies issue/file with the BIR to report and record remittances (constructive payment) of all taxes withheld from transactions. This serves as basis for BIR and BTr to record as income, the tax collection and deposit in their books of accounts.

Tax Revenues. Tax revenues are the income that are gained by government through the exercise of the sovereign power taxation.

Compulsory charges or levies imposed by government on goods, services, transactions, individuals, entities, and others, arising from the sovereign power of state. Examples of the collecting agencies for tax revenues are DENR, Bureau Of Customs, Bureau of Internal Revenue, Bureau of Fire Protection, Bureau of Immigration, Land Transportation Office and Other Executive Offices (OEOs).

Tax on Domestic Goods and Services. Tax levied on the domestic production, sale or transfer, leasing, use or delivery of goods, and rendering of services.

Tax on Income and Profits. Tax imposed on all taxable income earned/received by a taxpayer whether an individual, partnership, or corporation during a particular period of time, usually one year.

Taxes on International Trade and Transactions. The sum of import and customs duties, and other international trade-related tax collections of the national government.

Taxes on the Use of Goods or Property or Permission to Perform Activities. Taxes paid for the privilege of engaging in business or pursuing an occupation, calling, or profession. Includes franchise taxes, fixed annual business taxes, fixed taxes payable by manufacturers, producers or importers engaged in business subject to percentage taxes, and miscellaneous fixed taxes payable by brewers, distillers of spirits, manufacturers, importers, and exporters of cigars and cigarettes.

Taxes on Income and Profits. Taxes imposed on all taxable income earned or received by a taxpayer, whether individual, partnership, or corporation, during a particular period of time, usually lasting one year.

Technical Positions. Refer to position directly performing the substantive and/or front-line services or functions of the agency prescribed by its mandate.

T.O.P. Special Accounts. Deposit of the Treasurer of the Philippines (T.O.P.) with Authorized Government Depository Banks (AGDBs) accruing from proceeds of foreign loans or grants earmarked for special projects.

Total Resource Budget. A concept which requires the preparation of the national government within the framework of the total impact of all government entities on the national economy Under this concept, the National Government budget is

considered as only one component of the entire public resources. Government-Owned and/or Controlled Corporations (GOCCs) are also considered as substantial contributors to total public resources. GOCCs and LGUs are therefore required to prepare their budget consistent in form and timing with that of the National Government to facilitate comprehensive evaluation of the overall budget. In total resource budgeting, the energies and capabilities of all public entities are harnessed in drawing up the optimal package of goods and services that can be sustained by available resources.

Trade Balance. The difference between the values of export shipments and import arrivals. There is a trade surplus if export shipments exceeded import arrivals and a trade deficit if the latter exceeded the former.

Transfer Taxes. Taxes imposed on property transfers through sale, donation or inheritance.

Treasury Bills. Short-term debt instruments issued by the NG.

Treasury Bonds/Notes. Certificates of indebtedness issued by the National Government, the maturity of which extends beyond one year.

Treasury Bills. The direct and unconditional short-term obligations of the National Government to finance public expenditures. These are issued by the Bureau of Treasury can carry a maturity of a year or less.

The 91-day Treasury Bill rate refers to the interest rates on the Treasury Bills maturing within 91 days issued by the National Government to general funds for general purposes including payment of outstanding obligations of the government. It serves as a bellweather indicating the rate of interest in the market as well as important macroeconomic indicator in preparing the national budget.

Trust Fund. Fund which accounts for the receipts by any agency of government or by a public officer acting as trustee, agent, or administrator for the fulfillment of some obligations.

Trust Liabilities. An accounts used to record collections, income, or receipts of agencies held in trust or guarantee for another agency and for a specific purpose.

Trust Receipts. Receipts that are officially in the possession of government agencies or a public officer as trustee, agent, or administrator, or which have been received for the fulfil-ment of a particular obligation. These receipts may be classified as:

Inter-Agency Transferred Funds (IATF), which are receipts or fund transfers from any gov-ernment-agency or Government Owned and/or Controlled Corporations (GOCC) to another agency, and which are deposited in the National Treasury to facilitate project implementa-tion.

Receipts deposited with the National Treasury other than IATF, which are receipts from other sources – including private persons or foreign institutions – which are deposited with the National Treasury, pursuant to E.O. No. 338, for the fulfillment of some obligations; and,

Receipts deposited with Authorized Government Depository Bank (AGDB), which are re-ceipts from other sources that should be deposited in the AGDB for the fulfillment of some obligations.

U

Unobligated Allotment. An allotment released by the Department of Budget and Management through a Special Allotment Release Order but have not been awarded to a supplier and have reached the end of their validity period.

Unprogrammed Appropriations. Appropriations that are not yet supported by corresponding resources.

Unreleased Appropriation. An appropriation that have not been released by the Department of Budget and Management.

Unprogrammed Appropriations. Appropriations which provide standby authority to incur additional agency obligations for priority programs or projects when revenue collections exceed targets, and when additional foreign funds are generated.

Standby appropriations for priority programs or projects of the government. The utilization of Unprogrammed Funs may be approved if any of the following conditions are met: revenue collections for the year exceed targets, new revenues not included in the original revenue targets are successfully generated, or foreign loan proceeds are generated for newly approved projects covered by perfected loan agreements.

Budget appropriations that are not yet supported by corresponding resources in the GAA.

Unused Appropriations. Appropriations that have not been released by the DBM to a department or agency and allotments released to the department or agency through a Special Allotment Release Order but have not been awarded to a supplier and have reached the end of their validity period. It is composed of Unreleased Appropriations and Unobligated Allotments.

V

Veto. A constitutional right to reject a decision or proposal made by a law-making body

The refusal of the President to agree to a bill that has been approved by the legislature, thereby depriving the bill of any legally binding effect.

Vision. The part of the Strategic Objectives in the GAA that reflects the developmental goals of a specific agency or department. It is either a direct veto or a conditional veto.

W

Withdrawal Authorization. A written application to withdraw from a loan/grant, accomplished by a borrower/grantee and duly authorized by a lender/donor.

Working Fund. An advanced fund or seed money from loan/grant proceeds established to accelerate disbursements of funds and ensure efficient projects implementation.

Y

Year-End Report. A new publication by the DBCC on the macroeconomic outurn, performance of revenues, disbursements, and debt for the whole year, as well as detailed discussions on government expenditures and highlights on key programs.

Z

Zero-Based Budgeting (ZBB). A budgeting approach which involves a review/evaluation of major on-going programs and projects implemented by different departments/agencies, in order to : (a) establish the continued relevance of program objectives given the current developments/directions; (b) assess whether the program objectives/outcomes are being achieved; (c) ascertain alternative or more effective and efficient ways of achieving the objectives, and ultimately; (d) guide decision makers on whether the resources for the program/project should continue at its present level, or be increased, reduced or discontinued.