Public Fiscal Administration and Budgeting: Process and Controls
Budget Cycle
Master the four phases: budget preparation (executive, through DBM), legislation (Congress), execution (agencies, with allotments and cash programming), and accountability (COA audit). Know the Philippine budget process: the President submits the National Expenditure Program; Congress enacts the General Appropriations Act; releases flow through allotments and cash allocations.
Principles and Concepts
Understand fiscal policy (taxation and spending to stabilize the economy), balanced budget, deficit, public debt, and automatic appropriations. Review fundamental principles: no money shall be paid out of the Treasury except in pursuance of an appropriation; appropriations must be for public purposes; and the one-year life of appropriations with limited reversion rules. Know internal control, pre-audit vs. post-audit, and the GAA vs. supplemental budget distinction.
Traps
Questions swap allotment (authorization to incur obligations) with cash allocation (authority to pay). They also confuse obligation (commitment) with disbursement (payment). Watch for options claiming Congress may increase the President's budget for items outside the executive proposal, which is restricted.
Rule of Thumb
Trace the money: appropriation → allotment → obligation → disbursement → audit. Each step is a distinct authority.
Worked example: An agency signs a contract for supplies. That creates an obligation; payment later is a disbursement; the COA audit comes after.