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Assistant Director Rodrigo M.

Marquez
DBM MiMAROPA
Introduction
Legal Basis of Budget Authorization
Key Players in Budget Authorization
The Budget Authorization Flow Chart
Steps in the Budget Authorization Phase
Changes in the Annual Budget
Starts Ends
with… with…
• Introduction
• Legal Basis of Budget
Sanggunian Enactment of Authorization
receives the the AO and • Key Players in Budget
LEP approval Authorization
submitted by thereof by • The Budget Authorization
the LCE the LCE Flow Chart
• Steps in the Budget
Authorization Phase
• Changes in the Annual
Budget
• Introduction
• Legal Basis of Budget
Authorization
On or before the end of the current fiscal year, • Key Players in Budget
the Sanggunian concerned shall enact, through Authorization
an ordinance, the annual budget of the local • The Budget Authorization
government unit for the ensuing fiscal year on Flow Chart

the basis of the estimates of income and • Steps in the Budget


Authorization Phase
expenditures submitted by the local chief
Changes in the Annual
executive (Section 319, RA No. 7160). •
Budget
LOCAL CHIEF EXECUTIVE

• Introduction
• Legal Basis of Budget
Authorization
 shall submit the LEP to the Sanggunian for
authorization (Section 318, RA No. 7160) • Key Players in Budget
Authorization
 shall approve or veto the Appropriation • The Budget Authorization
Ordinance after its enactment Flow Chart
• Steps in the Budget
(Sections 54 and 55, RA No. 7160)
Authorization Phase
• Changes in the Annual
Budget
SANGGUNIAN

• Introduction
Legal Basis of Budget
 shall enact the annual & supplemental •
Authorization
budgets • Key Players in Budget
 appropriate funds for specific programs, Authorization

projects, services & activities, or for other • The Budget Authorization


Flow Chart
purposes not contrary to law, in order to
• Steps in the Budget
promote the general welfare of the locality & Authorization Phase
its inhabitants. • Changes in the Annual
(Sections 447 (2) (ii), 458 (2)(i), and 468 (2)(i), RA No. 7160) Budget
Committee on Appropriations/Finance

• Introduction
• Legal Basis of Budget
Authorization
 shall be responsible for conducting a
• Key Players in Budget
preliminary review & evaluation of the Local Authorization
Expenditure Program • The Budget Authorization
Flow Chart
 shall submit its report & recommendation to
• Steps in the Budget
the Sanggunian proper Authorization Phase
• Changes in the Annual
Budget
Secretary to the Sanggunian

• Introduction
 shall stamp the Appropriation Ordinance with the seal of the • Legal Basis of Budget
Sanggunian & record the same in a book kept for the purpose Authorization

 shall affix his signature to the enacted Appropriation Ordinance • Key Players in Budget
& present the same to the Presiding Officer for his signature & Authorization
forward copies thereof to the LCE for approval (Section 469, RA • The Budget Authorization
No. 7160) Flow Chart
 shall cause the posting of an ordinance or resolution in the • Steps in the Budget
bulletin board at the entrance of the provincial capitol & the city, Authorization Phase
municipal, or barangay hall in at least two (2) conspicuous
• Changes in the Annual
places in the local government unit concerned not later than
Budget
five (5) days after approval thereof (Sec. 59 (b), RA No. 7160)
Local Finance Committee

• Introduction
• Legal Basis of Budget
Authorization
 shall assist the Sanggunian in the analysis & • Key Players in Budget
review of the annual & supplemental budgets Authorization

to determine compliance with statutory & • The Budget Authorization


Flow Chart
administrative requirements (Section 316 [g],
• Steps in the Budget
RA No. 7160). Authorization Phase
• Changes in the Annual
Budget
Heads of Departments and Offices

• Introduction
• Legal Basis of Budget
Authorization
 Upon request of the Sanggunian through the • Key Players in Budget
LCE, Heads of Departments and Offices may Authorization

appear before the body or the Committee on • The Budget Authorization


Flow Chart
Appropriations/Finance to explain or justify
• Steps in the Budget
their proposals Authorization Phase
• Changes in the Annual
Budget
CSOs and Private Sector Groups

• Introduction
• Legal Basis of Budget
Authorization
 Should the Sanggunian allow the CSOs to • Key Players in Budget
participate in the budget authorization phase, Authorization

it may refer to the Handbook on the • The Budget Authorization


Flow Chart
Participation of Civil Society Organizations in
• Steps in the Budget
the Local Budget Process. Authorization Phase
• Changes in the Annual
Budget
• Introduction
• Legal Basis of Budget
Authorization
• Key Players in Budget
Authorization
• The Budget
Authorization Flow
Chart
• Steps in the Budget
Authorization Phase
• Changes in the Annual
Budget
• Enact the Appropriation Ordinance
Step 1

• Approve the Appropriation Ordinance • Introduction


Step 2 • Legal Basis of Budget
Authorization
• Key Players in Budget
• Post the Appropriation Ordinance Authorization
Step 3
• The Budget Authorization
Flow Chart
• .Forward copies of the approved Appropriation • Steps in the Budget
Step 4 Ordinance to the reviewing authority Authorization Phase
• Changes in the Annual
Budget
“No money shall be paid out of the local
Step 1: Enact the
treasury except in pursuance of an Appropriation Ordinance
Appropriation Ordinance or law” (Section Step 2: Approve the
305 (a), RA No. 7160). Appropriation Ordinance
Step 3: Post the
Appropriation Ordinance
Step 4: Forward copies of the
approved Appropriation
Ordinance to the reviewing
authority
LBA Form No. 1A – Checklist on Documentary and Signature
Requirements for Annual Budget
Step 1: Enact the
Document Signatory Appropriation Ordinance
Budget Message LCE Step 2: Approve the
Appropriation Ordinance
LEP LCE
Step 3: Post the
Plantilla of Personnel Schedule HRMO/LCE Appropriation Ordinance
Step 4: Forward copies of the
Annual Operating Budget of Local Head of the Local Economic approved Appropriation
Economic Enterprise, if any Enterprise/ LCE Ordinance to the reviewing
authority
Secretary to the Sanggunian/
AIP (Approved by the Sanggunian
Presiding
through a Resolution)
LBA Form No. 1B – Checklist on Documentary and Signature
Requirements for Supplemental Budget
Step 1: Enact the
Document Signatory
Appropriation Ordinance
Funds Actually Available: Step 2: Approve the
• Certified Statement of Additional Appropriation Ordinance
Local Treasurer & Local Accountant*
Realized Income
Local Treasurer & Local Accountant* Step 3: Post the
• Certification of Savings
Appropriation Ordinance
New Revenue Measure/s:
• Certified Statement of Income from Step 4: Forward copies of the
New Revenue Measure/s approved Appropriation
• Copy of duly enacted ordinance Local Treasurer and Local Ordinance to the reviewing
which imposes new local taxes, Accountant* authority
charges, fees, fines, or penalties or
which raises existing local taxes,
charges, fees, fines and penalties.
*As recommended by COA
LBA Form No. 1B – Checklist on Documentary and Signature
Requirements for Supplemental Budget
Step 1: Enact the
Document Signatory Appropriation Ordinance
Step 2: Approve the
• Copy of official communication stating that the Appropriation Ordinance
LGU is a recipient of new or higher remittances,
contributions, subsidies or grants in aid from the Step 3: Post the
National Government or from government Appropriation Ordinance
corporations and private entities
Step 4: Forward copies of the
Realignment of Appropriations in Times of Natural approved Appropriation
Calamity Local Treasurer Ordinance to the reviewing
Local Accountant authority
• Certificate of Source of Funds Available for LCE
Appropriations
The Sanggunian, with the assistance of the
LFC, shall evaluate and deliberate on the LEP Step 1: Enact the
in terms of compliance with the budgetary Appropriation Ordinance
Step 2: Approve the
requirements & general limitations. Appropriation Ordinance
Step 3: Post the
Appropriation Ordinance
Step 4: Forward copies of the
approved Appropriation
Ordinance to the reviewing
authority
The Receipts Portion in the LEP

Check:
Step 1: Enact the
 BY’s aggregate estimated income vs. aggregate Appropriation Ordinance
expenditure program (Section 324 [a], RA No. 7160); Step 2: Approve the
Appropriation Ordinance
 If the taxes & fees identified as sources of the Step 3: Post the
estimated income are in accordance with the Appropriation Ordinance
approved LRC; Step 4: Forward copies of the
approved Appropriation
 If the estimated receipts from RPT correspond to the Ordinance to the reviewing
total amount of due and demandable RPT, including authority
delinquent accounts;
The Expenditure Program
Determine/Check/Verify
 Overall level of appropriations by dep’t/office/unit & special Step 1: Enact the
purpose appropriations & the overall total; Appropriation Ordinance
 Provisions for associated PS costs;
Step 2: Approve the
 That the provision for debt services does not exceed the
Appropriation Ordinance
ceiling required by law - 20% of the regular income of the LGU
concerned (Section 324 (b), RA No. 7160); Step 3: Post the
 That the provision for LDRRMF is not less than 5% of the Appropriation Ordinance
estimated regular income required by law (RA No. 10121); Step 4: Forward copies of the
 That the provision from IRA for development projects is not approved Appropriation
less than 20% required by law (Section 287, RA No. 7160); Ordinance to the reviewing
 That the provision for discretionary expenses, if any, does not authority
exceed 2% of the actual receipts derived from basic RPT in the
next preceding year (Section 325 (h), RA No. 7160); and
 If the projects in the budget are consistent with the AIP.
The Sanggunian shall consider the LEP as a
Step 1: Enact the
priority measure, if certified as urgent by the Appropriation Ordinance
LCE, thus, shall take precedence over all other Step 2: Approve the
Appropriation Ordinance
pending and proposed measures. As a rule,
Step 3: Post the
all Sanggunian sessions shall be open to the Appropriation Ordinance
public, unless otherwise provided by law Step 4: Forward copies of the
(Article 105 [b], IRR of RA No. 7160). approved Appropriation
Ordinance to the reviewing
authority
1.3.2 Deliberation Proper

Step 1: Enact the


 May vary depending on the IRP adopted by the Appropriation Ordinance
Sanggunian members Step 2: Approve the
Appropriation Ordinance
 Committee on Appropriations/Finance may Step 3: Post the
conduct its own budget hearing, call upon the Appropriation Ordinance
LFC and Heads of Departments & Offices, then Step 4: Forward copies of the
renders its report & recommendations to the approved Appropriation
Ordinance to the reviewing
Sanggunian proper. authority
After budget deliberation, the Sanggunian authorizes
the annual budget through an Appropriation
Step 1: Enact the
Ordinance. Appropriation Ordinance
Step 2: Approve the
An appropriation refers to an authorization made by Appropriation Ordinance
ordinance directing the payment of goods and Step 3: Post the
services from local government funds under specified Appropriation Ordinance
conditions or for specific purpose (Section 306 [b], RA Step 4: Forward copies of the
No. 7160) approved Appropriation
Ordinance to the reviewing
authority
Contents of the AO

 Assigned number, title/caption, enacting/ordaining Step 1: Enact the


Appropriation Ordinance
clause, & date of proposed effectivity (Article 107
Step 2: Approve the
[b], IRR of RA No. 7160); Appropriation Ordinance
Step 3: Post the
 Provision identifying the documents appended to Appropriation Ordinance
the AO; Step 4: Forward copies of the
approved Appropriation
 Receipts Program Ordinance to the reviewing
authority

 Expenditure Program by Department/Office/Unit


Contents of the AO

 Special Purpose Appropriations Step 1: Enact the


Appropriation Ordinance
 General Provisions; and Step 2: Approve the
Appropriation Ordinance

 Summary of new appropriations by object of Step 3: Post the


Appropriation Ordinance
expenses & by sector, & by Department/Office, &
Step 4: Forward copies of the
Summary Statement of all Statutory & Contractual approved Appropriation
Obligations Due. Ordinance to the reviewing
authority
Rules Governing the Enactment of an AO

 Rules prescribed in Sec. 54, LGC and Article 107 of Step 1: Enact the
Appropriation Ordinance
IRR, as well IRP adopted by the Sanggunian
Step 2: Approve the
 Majority of all the members of the Sanggunian who Appropriation Ordinance
have been elected and qualified shall constitute a Step 3: Post the
Appropriation Ordinance
quorum to transact official business
Step 4: Forward copies of the
 Proposed AO shall be accompanied by a brief approved Appropriation
explanatory note containing the justifications for its Ordinance to the reviewing
authority
approval
Rules Governing the Enactment of an AO
 Proposed AO shall be signed by the author or authors
and submitted to the Secretary to the Sanggunian
 If the proposed AO is certified as urgent by the LCE, it Step 1: Enact the
may be presented to & considered by the sanggunian at Appropriation Ordinance
the same meeting it was 1st reported Step 2: Approve the
Appropriation Ordinance
 No ordinance shall be considered on 2nd reading in any
regular meeting unless it has been reported out by the Step 3: Post the
Appropriation Ordinance
proper committee to which it was referred, normally the
CA, or certified as urgent by the LCE Step 4: Forward copies of the
approved Appropriation
 Secretary to the Sanggunian shall prepare copies of the Ordinance to the reviewing
proposed AO in the form it was passed during the 2nd authority
reading & shall distribute to each Sanggunian member a
copy thereof for the 3rd reading & final consideration
Rules Governing the Enactment of an AO

 If the proposed AO is certified as urgent by the LCE, it


may be submitted for final voting immediately after
Step 1: Enact the
debate or amendment during the 2nd reading Appropriation Ordinance
 Proposed AO shall require the affirmative vote of a Step 2: Approve the
majority of all the Sanggunian members for its passage Appropriation Ordinance
 Approved AO shall be stamped with seal of the Step 3: Post the
Sanggunian & recorded in a book kept for the purpose Appropriation Ordinance
 Secretary to the Sanggunian shall affix signature to the Step 4: Forward copies of the
enacted AO & present the same to the Presiding Officer approved Appropriation
for signature Ordinance to the reviewing
authority
 Secretary to the Sanggunian shall forward the signed
AO to the LCE for approval
Voting Requirement to Enact an AO
 “x x x. Any ordinance or resolution directing the payment
of money . . ., shall require the affirmative vote of a majority
of all the Sanggunian members for its passage.” Step 1: Enact the
Appropriation Ordinance
 While the IRR of RA No. 7160 does not explicitly state that Step 2: Approve the
an AO requires the majority vote of all the members of the Appropriation Ordinance
Sanggunian (qualified majority), it does not likewise Step 3: Post the
expressly state that it requires only a majority vote of the Appropriation Ordinance
members present there being a quorum (simple majority). Step 4: Forward copies of the
approved Appropriation
Ordinance to the reviewing
Simple Majority means the majority vote of all those present in a
authority
session there being a quorum, while qualified majority refer to the
majority vote of all the members duly elected and qualified
regardless of wehther all of them were present or not in a particular
session (La Carlota City vs. Rojo, G.R. No. 181367, April 24, 2012).
Voting Requirement to Enact an AO

In determining the total membership of the


Sanggunian, the Vice-Governor or the Vice- Step 1: Enact the
Appropriation Ordinance
Mayor, as the case maybe, is included
Step 2: Approve the
(Gamboa vs. Aguirre and Araneta, G.R. No. Appropriation Ordinance
134213, July 20, 1999). Step 3: Post the
Appropriation Ordinance
Step 4: Forward copies of the
approved Appropriation
Ordinance to the reviewing
authority
Voting Requirement to Enact an AO

ZAMORA VS. CABALLERO, G.R. No. 147767, January 14,


2004
Step 1: Enact the
Appropriation Ordinance
“Lastly, for a resolution authorizing the Governor to enter into a
construction contract to be valid, the vote of the majority of all Step 2: Approve the
Appropriation Ordinance
members of the Sanggunian, and not only of those present
during the session, is required in accordance with Section Step 3: Post the
468[54] of the LGC in relation to Article 107[55] of its IRR Appropriation Ordinance
Step 4: Forward copies of the
x x Applying Section 468 of the LGC & Article 107 of its IRR, approved Appropriation
there being 14 members in the Sanggunian, the approval of 8 Ordinance to the reviewing
members is required to authorize the governor to enter into authority
the Contract with the Allado Company since it involves the
creation of liability for payment on the part of the LGU.”
Voting Requirement to Enact an AO
QUISUMBING VS. GARCIA, G.R. No. 175527, December 8,
2008
Step 1: Enact the
“The question of whether a sanggunian authorization separate Appropriation Ordinance
from the AO is required should be resolved depending on the
Step 2: Approve the
particular circumstances of the case. Resort to the AO is Appropriation Ordinance
necessary in order to determine if there is a provision therein
which specifically covers the expense to be incurred or the Step 3: Post the
Appropriation Ordinance
contract to be entered into. Should the AO, for instance, already
contain in sufficient detail the project and cost of a capital Step 4: Forward copies of the
outlay such that all that the local chief executive needs to do approved Appropriation
after undergoing the requisite public bidding is to execute the Ordinance to the reviewing
authority
contract, no further authorization is required, the AO already
being sufficient.”
Limitations on Legislative Actions

 Sanggunian may not increase the proposed Step 1: Enact the


amount in the executive budget nor include Appropriation Ordinance

new items Step 2: Approve the


Appropriation Ordinance
Step 3: Post the
 Exception: to provide for statutory and Appropriation Ordinance
contractual obligations Step 4: Forward copies of the
approved Appropriation
Ordinance to the reviewing
 In no case shall total appropriations in the authority

executive budget exceeded


Failure to Enact the Annual Appropriations

 Ordinance authorizing the appropriations of the preceding


year shall be deemed re-enacted. Step 1: Enact the
Appropriation Ordinance
 Sanggunian shall continue to hold sessions, without additional
Step 2: Approve the
remuneration for its members, until the ordinance authorizing Appropriation Ordinance
the annual appropriations is approved, and no other business
may be taken up during such sessions Step 3: Post the
Appropriation Ordinance
 If the Sanggunian still fails to enact such ordinance after 90 Step 4: Forward copies of the
days from the beginning of the fiscal year, the preceding approved Appropriation
year’s budget shall remain in force and effect until such time Ordinance to the reviewing
authority
that the ordinance authorizing the annual appropriations is
passed by the Sanggunian concerned
 Only the annual appropriations for salaries & wages of
existing positions, statutory and contractual obligations,
Step 1: Enact the
& essential operating expenses authorized in the annual
Appropriation Ordinance
& supplemental for the preceding year shall be deemed
re-enacted & disbursement of funds shall be in Step 2: Approve the
Appropriation Ordinance
accordance therewith.
Step 3: Post the
Appropriation Ordinance
 Essential operating expenses refer to specific objects of
expenditure under MOOE, which are necessary for the Step 4: Forward copies of the
approved Appropriation
operation of a particular LGU to carry out its mandate in Ordinance to the reviewing
providing efficient & effective basic services. authority
 In the implementation of the reenacted ordinance, the
local treasurer concerned shall exclude from the
estimates of income for the preceding fiscal year those
realized from nonrecurring sources like national aids,
Step 1: Enact the
proceeds from loans, sale of assets, prior year Appropriation Ordinance
adjustments, and other analogous sources of income.
Step 2: Approve the
Appropriation Ordinance
 In case the revised income estimates be less than the
Step 3: Post the
aggregate reenacted appropriations, the local treasurer
Appropriation Ordinance
concerned shall accordingly advise the Sanggunian
concerned which shall, within 10 days from receipt of Step 4: Forward copies of the
approved Appropriation
such advice, make the necessary adjustments or Ordinance to the reviewing
reductions. authority

 No ordinance authorizing supplemental appropriations


shall be passed in place of the annual appropriations.
Enacted AO presented to the LCE for approval. LCE
affix his signature in every page thereof, otherwise, he
shall veto it and return the same with his objections to Step 1: Enact the
the sanggunian Appropriation Ordinance
Step 2: Approve the
Appropriation Ordinance
 Veto shall be communicated by the LCE to the
Step 3: Post the
Sanggunian within Appropriation Ordinance
 15 days - for province or
Step 4: Forward copies of the
 10 days - for city or municipality approved Appropriation
 Failure to communicate - the ordinance shall be Ordinance to the reviewing
deemed approved as if the LCE has signed it [Sec. authority

54(b), LGC]
Veto Power of the LCE

 LCE may veto an ordinance on the ground that it is ultra Step 1: Enact the
Appropriation Ordinance
vires (“beyond the powers”), or prejudicial to public
Step 2: Approve the
welfare Appropriation Ordinance
Step 3: Post the
 LCE, except the Punong Barangay, shall have the power Appropriation Ordinance
to veto: Step 4: Forward copies of the
 any particular item or items of the AO, approved Appropriation
Ordinance to the reviewing
 ordinance or resolution adopting local development
authority
plan and public investment program, or
 ordinance directing the payment of money or
creating liability (Sec. 55, LGC)
 Veto may be partial or total
Step 1: Enact the
 Veto shall not affect the item or items that are not Appropriation Ordinance
objected to Step 2: Approve the
Appropriation Ordinance

 Vetoed item or items shall not take effect unless the Step 3: Post the
Appropriation Ordinance
Sanggunian overrides the veto; otherwise, the item
Step 4: Forward copies of the
or items in the AO of the previous year approved Appropriation
corresponding to those vetoed, if any, shall be Ordinance to the reviewing
deemed reenacted authority

 LCE may veto an ordinance or resolution only once


Override of the Veto

 The Sanggunian may override the veto of the LCE Step 1: Enact the
Appropriation Ordinance
by 2/3 vote of all its members.
Step 2: Approve the
Appropriation Ordinance
Step 3: Post the
 Such override will make the ordinance effective for Appropriation Ordinance

all legal intents and purposes even without the Step 4: Forward copies of the
approved Appropriation
approval of the LCE. Ordinance to the reviewing
authority
 The secretary to the sanggunian concerned shall
cause the posting of an ordinance or resolution in
the bulletin board at the entrance of the provincial
capitol and the city, municipal, or barangay hall in Step 1: Enact the
Appropriation Ordinance
at least two (2) conspicuous places in the LGU
Step 2: Approve the
concerned not later than 5 days after the approval Appropriation Ordinance
thereof. (Section 59 (b), RA No. 7160) Step 3: Post the
 The text of the ordinance or resolution shall be Appropriation Ordinance
disseminated and posted in Filipino or English or in Step 4: Forward copies of the
the language or dialect understood by the majority approved Appropriation
of the people in the LGU concerned, & the Ordinance to the reviewing
authority
secretary to the sanggunian shall record such fact
in a book kept for the purpose, stating the dates of
approval and postings.
 In the case of HUC & ICC, the main features of the
ordinance or resolution duly enacted or adopted shall,
in addition to being posted, be published once in a local
Step 1: Enact the
newspaper of general circulation. (Section 59 (d), RA No. Appropriation Ordinance
7160).
Step 2: Approve the
 The AO shall take effect after 10 days from the date a Appropriation Ordinance
copy thereof is posted in the bulletin board at the
Step 3: Post the
entrance of the provincial capitol and the city, municipal, Appropriation Ordinance
or barangay hall as the case may be, and in at least 2
Step 4: Forward copies of the
other conspicuous places in the government unit approved Appropriation
concerned. (Section 59 [a], RA No. 7160; DILG MC No. Ordinance to the reviewing
2010-149, 12/14/10) authority
 In Tanada vs Tuvera, the SC declared that a law “which
have not been published has no force and effect” (136
SCRA 27, April 24, 1985).
 Component cities & municipalities:
Secretary to the Sanggunian shall Step 1: Enact the
forward to the Sangguniang Panlalawigan within three Appropriation Ordinance
(3) calendar days after approval, copies of the Step 2: Approve the
approved AO for review in accordance with Sec. 327 of Appropriation Ordinance
the LGC (Sec. 56, LGC) Step 3: Post the
Appropriation Ordinance
 Provinces, HUC, independent component cities and Step 4: Forward copies of
municipalities within Metro Manila: the approved
Secretary to the Sanggunian shall forward to the DBM Appropriation Ordinance
within three (3) calendar days after approval, copies of to the reviewing authority
the approved AO for review in accordance with Sec.
326 of the LGC (Sec. 56, LGC)
 General Rule
 All budgetary proposal shall be included and considered
in the budget preparation process • Introduction
 After the LCE has submitted the executive budget to the • Legal Basis of Budget
Sanggunian, no ordinance providing for a supplemental Authorization
budget shall be enacted (Sec. 321, LGC) • Key Players in Budget
Authorization
 Exceptions • The Budget Authorization
Changes in the annual budget may be done through Flow Chart
Supplemental Budget: • Steps in the Budget
 When supported by funds actually available as certified Authorization Phase
by the local treasurer • Changes in the Annual
 If covered by new revenue sources Budget
 In times of public calamity (Sec. 321, LGC)
 General Rule • Introduction
 Funds shall be available exclusively for the specific • Legal Basis of Budget
purpose for which they have been appropriated Authorization
 No ordinance shall be passed authorising any transfer of • Key Players in Budget
appropriations from one item to another (Sec. 336, LGC) Authorization
• The Budget Authorization
 Exceptions Flow Chart
 The LCE or the Presiding Officer of the Sanggunian may, • Steps in the Budget
by Ordinance, be authorized to augment any item in the Authorization Phase
approved annual budget for their respective officers from • Changes in the Annual
savings in other items within the same expense class of Budget
their respective appropriations
(Sec. 336, LGC)
 The ordinance enacting the annual budget shall
take effect at the beginning of the ensuing calendar
year • Introduction
 An ordinance enacting a supplemental budget shall • Legal Basis of Budget
Authorization
take effect upon its approval or on the date fixed
• Key Players in Budget
therein Authorization
 The effectivity of budgets is subject further to • The Budget Authorization
compliance with the posting requirements. Flow Chart
• Steps in the Budget
Authorization Phase
• Changes in the Annual
Budget