Department of Budget and Management

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The Department of Budget and Management (DBM; Filipino: Kagawaran ng Badyet at Pamamahala[1]) is an executive department of the Philippine government tasked with ensuring the sound and efficient use of government resources for national development.

The current secretary of the department is Wendel Avisado, as of 5 August 2019.[2] The department has four undersecretaries and four assistant secretaries.

History

American Period

In the early 20th century, the Second Philippine Commission, otherwise known as the Taft Commission, enacted appropriation measures for the Commonwealth government’s annual expenditures. This was pursuant to the Philippine Bill of 1902, which decreed that disbursements from the national treasury were to be authorized only according to appropriations made by law.

When Jones Law was passed in 1916, the Philippine Legislature -- which originally had the Philippine Commission and the Philippine Assembly as its upper house and lower house, respectively -- was set up with two chambers: the Philippine Senate and the House of Representatives. The governor-general was tasked to submit the annual budget within 10 days of the opening of the legislature's regular session. Two years later, the Council of the State was formed to prepare the budget that the governor-general was required to submit to the Philippine Legislature.

A budget office was formed to help with the preparation, enactment, and implementation of such appropriations made by law. Four divisions constituted the office: a budget division was responsible for agency regular budgets; an expense-central division was responsible for special budgets; a service inspection division was tasked with screening appointments and requests for the creation of positions; and an administrative division took care of routine administrative matters.

The Constitution of 1935 established both budget policy and procedure, which were further detailed in a series of laws and executive acts over the years.

The Budget Commission was established by Executive Order (EO) No. 25, issued on April 25, 1936. Presidential Decree (PD) No. 1405, signed on June 11, 1978, turned the commission into a ministry Patterned after the United States Federal Government, the Budget Commission was, and the Ministry of the Budget continued to be, part of the Office of the President and separate from the other fiscal agencies of government that were part of the Ministry of Finance.

Commonwealth Act (CA) No. 246 was the first budget law passed, on December 17, 1937. Taking  effect on January 1, 1938, it provided for a line-item budget as the framework of the government's budgeting system. CA No. 246 called for a "balanced budget" that emphasized matching proposed expenditures with existing revenues.

Revised Budget Act

Republic Act (RA) No. 992, otherwise called the Revised Budget Act, was enacted on June 4, 1954 providing for an expanded role of the Budget Commission as the fiscal arm and budgeting adviser of the president. Budget preparation was to include the aggregation of the programs of the different departments and agencies of the government. A performance budgeting system was introduced during this period.

The Integrated Reorganization Plan of 1972, under Presidential Decree No. 1, implanted re-organizational changes in the Budget Commission with four of its units retained: the Budget Operations Office; National Accounting Office; Management Office; and Wage and Position Classification Office (GWAPOCO). Five staff units were provided the commission: for planning service; for financial and administrative services; or training and information services; a legislative staff; and a data processing center.

The 1973 Constitution instituted a change to a parliamentary form of government. The legislative branch of the government, then referred to as the Batasang Pambansa, saw the minister in charge of the budget chairing the Committee on Appropriations and Reorganization. Through the Budget Reform Decree of 1977, the planning, programming and budgeting linkages of the ministry were further strengthened.

The 1973 Philippine Constitution was superseded by the Provisional Constitution under Proclamation No. 3 of President Corazon C. Aquino. The legislative power was temporarily placed in the hands of the president. Budgetary functions once more were exercised by the Office of Budget and Management.

EO No. 292, issued in pursuance of the 1987 Constitution, provided for major organizational subdivisions of the Department of Budget and Management.

In 1992, under Fidel V. Ramos, government budgeting was aimed at making the national budget instrumental in breaking the boom and bust cycle that had characterized the Philippine economy in the past. Beyond sustaining the operations of government and its projects, the budget was utilized as an economic stimulus and a means to disperse the gains of economic development.

Asian Financial Crisis

At the outset of Joseph Estrada's presidency, the Asian financial crisis during the period prompted the national leadership to take a second look at the country's economic policies and strategies. To maintain macroeconomic stability amid the effects of the economic turmoil, the government had to raise domestic demand by sustaining expenditures and pump-priming the areas of public infrastructure and social services. It had to adopt an expansionary fiscal policy by allowing a reasonable level of cyclical deficit to be financed largely through foreign borrowing while offsetting the negative impact of the deficit by introducing structural reforms in the budget process.

During this period, from mid-1998 to the end of 2000, the DBM continued to introduce budgeting reforms that were aimed at improving cash management, reducing uncertainty in the allotment and cash flow, and enhancing transparency and accountability.

Under President Gloria Macapagal-Arroyo, the DBM focused its efforts on deepening fiscal responsibility, enhancing the efficiency of public expenditures, and promoting good governance. Along with these major areas of concern, it intensified efforts at strengthening inter-governmental relations, eliciting increased participation from the private sector in the overall budget process and in intensifying public information on the administration's fiscal policy, thrusts, and budget policies and procedures. It likewise stepped up efforts at enhancing internal management in line with its vision to be seen as an organization that influences the spending behavior and management of resources of agencies towards transparency, equity, and accountability.

On April 25, 2011, the department celebrated its 75th anniversary. It was kicked off with a flag-raising ceremony and a signing of a pledge of commitment by all its employees and executives, including Sec. Florencio Abad. In the evening of the same day, the entire DBM family went to the Philippine International Convention Center in Pasay for a grand ball in honor of the department's service to the country. President Benigno Aquino III graced the event and delivered his speech. On the other hand, Antonietta "Nonette" Arquiza of DBM Regional Office IX was given the title Miss DBM by renowned fashion guru Mama Renee Salud in the spirit of fun as DBM celebrated its 75th anniversary.

Bureaus

  • Budget Operations Office
Budget and Management Bureau A
Coverage:
• Department of Finance (DOF)
• Department of Public Works and Highways (DPWH)
• Department of Tourism (DOT)
• Department of Trade and Industry (DTI)
• Department of Transportation (DOTr)
• National Economic and Development Authority (NEDA)
• Mindanao Development Authority, LEDAC, CDA
Budget and Management Bureau B
Coverage:
• Department of Health (DOH)
• Department of Labor and Employment (DOLE)
• Department of Social Welfare and Development (DSWD)
• Commission on the Filipino Language (CFL)
• Film Development Council of the Philippines (FDCP)
• Housing and Land Use Regulatory Board (HLURB)
• Housing and Urban Development Coordinating Council (HUDCC)
• Movie and Television Review and Classification Board (MTRCB)
• National Anti-Poverty Commission (NAPC)
• National Commission for Culture and the Arts (NCCA)
• National Historical Commission of the Philippines
• National Library of the Philippines
• National Archives of the Philippines
• National Commission on Indigenous Peoples
• Optical Media Board (OMB)
• Philippine Commission on Women
• Philippine Sports Commission (PSC)
• Presidential Commission for the Urban Poor
Budget and Management Bureau C
Coverage:
• Office of the President (OP)
• Office of the Vice President (OVP)
• Department of Budget and Management (DBM)
• Presidential Communications Operations Office (PCOO)
• Career Executive Service Board
• Congress of the Philippines
• Civil Service Commission (CSC)
• Commission On Audit (COA)
• Commission on Elections (COMELEC)
• Development Academy of the Philippines
• Anti-Money Laundering Council (AMLC)
• Games and Amusements Board (GAB)
• Government-Owned and/or – Controlled Corporations (GOCCs)
• Philippine Institute for Development Studies
• Philippine Racing Commission
• Presidential Legislative Liaison Office (PLLO)
• Presidential Management Staff (PMS)
• Senate
Budget and Management Bureau D
Coverage:
• Department of Foreign Affairs (DFA)
• Department of Interior and Local Government (DILG)
• Department of Justice (DOJ)
• Department of National Defense (DND)
• The Judiciary
• Autonomous Region in Muslim Mindanao (ARMM)
• Office of the Ombudsman
• Commission on Human Rights
• Commission on Filipinos Overseas
• Dangerous Drugs Board (DDB)
• National Commission on Muslim Filipinos
• National Intelligence Coordinating Agency (NICA)
• National Security Council (NSC)
• Office of the Presidential Adviser on the Peace Process
• Philippine Drug Enforcement Agency (PDEA)
• International Commitments Fund
Budget and Management Bureau E
Coverage:
• Department of Agrarian Reform (DAR)
• Department of Agriculture (DA)
• Department of Energy (DOE)
• Department of Environment and Natural Resources (DENR)
• Department of Information and Communications Technology (DICT)
• Climate Change Commission
• Energy Regulatory Commission
• Fertilizer and Pesticide Authority
• Pasig River Rehabilitation Commission
• National Disaster Risk Reduction and Management Fund (NDRRMF)
Budget and Management Bureau F
Coverage:
• Monitoring and Evaluation
• Department of Education (DepEd)
• Department of Science and Technology (DOST)
• Commission on Higher Education (CHED)
• State Universities and Colleges (SUCs)
• University of the Philippines
• Mindanao State University
Local Government and Regional Coordination Bureau
Coverage:
• Internal Revenue Allotment (IRA)
• Allocation to Local Government Units

Attached agencies

  • Government Procurement Policy Board-Technical Support Office
  • Procurement Service

List of the Secretaries of the Department of Budget and Management[edit]

The following is a list of the secretaries of the department since its inception.

# Name Term Began Term Ended President
Minister of Budget and Management
1 Jaime C. Laya June 12, 1978 January 12, 1981 Ferdinand Marcos
2 Manuel Alba January 25, 1981 February 25, 1986
3 Alberto Romulo February 25, 1986 March 8, 1987 Corazon Aquino
Secretary of Budget and Management
4 Guillermo Carague March 13, 1987 February 12, 1992 Corazon Aquino
5 Salvador Enriquez, Jr. February 12, 1992 June 30, 1992
June 30, 1992 February 1, 1998 Fidel V. Ramos
* Emilia Boncodin February 1, 1998 June 30, 1998
6 Benjamin Diokno June 30, 1998 January 20, 2001 Joseph Ejercito Estrada
7 Emilia Boncodin January 23, 2001 July 8, 2005 Gloria Macapagal Arroyo
8 Romulo Neri July 19, 2005 February 15, 2006
9 Rolando Andaya, Jr. February 15, 2006 February 24, 2010
* Joaquin Lagonera March 8, 2010 June 30, 2010
10 Florencio Abad June 30, 2010 June 30, 2016 Benigno S. Aquino III
(6) Benjamin Diokno June 30, 2016 March 4, 2019 Rodrigo Roa Duterte
* Janet Abuel March 5, 2019 August 5, 2019
11 Wendel Avisado August 5, 2019 Incumbent

References