Admin Code for DBM
Content
EXECUTIVE ORDER NO. 292
INSTITUTING THE
“ADMINISTRATIVE CODE OF 1987″
Budget and Management
General Provisions
SECTION 1. Declaration of Policy.—The national budget shall be formulated and implemented as
an instrument of national development, reflective of national objectives and plans; supportive of and
consistent with the socio-economic development plans and oriented towards the achievement of
explicit objectives and expected results, to ensure that the utilization of funds and operations of
government entities are conducted effectively; formulated within the context of a regionalized
governmental structure and within the totality of revenues and other receipts, expenditures and
borrowings of all levels of government and of government-owned or controlled corporations; and
prepared within the context of the national long-term plans and budget programs of the Government.
SECTION 2. Mandate.—The Department shall be responsible for the formulation and
implementation of the National Budget with the goal of attaining our national socio-economic
plans and objectives.
The Department shall be responsible for the efficient and sound utilization of government
funds and revenues to effectively achieve our country’s development objectives.
SECTION 3. Powers and Functions.—The Department of Budget and Management shall assist the
President in the preparation of a national resources and expenditures budget, preparation,
execution and control of the National Budget, preparation and maintenance of accounting
systems essential to the budgetary process, achievement of more economy and efficiency in the
management of government operations, administration of compensation and position classification
systems, assessment of organizational effectiveness and review and evaluation of legislative
proposals having budgetary or organizational implications.
CHAPTER 2
CHAPTER 2
Department Proper
SECTION 4. Office of the Secretary.—The Office of the Secretary shall consist of his immediate staff,
the Budget Control Staff, Research Staff, a Regional Coordination Staff for Luzon, and a Regional
Coordination Staff for Visayas and Mindanao.
SECTION 5. Undersecretaries.—The Secretary shall be assisted by five (5) Undersecretaries, who
shall all be appointed by the President upon the recommendation of the Secretary. They shall
exercise supervision over the offices, services, operating units and individuals under their authority
and responsibility.
SECTION 6. Assistant Secretaries.—There shall be five (5) Assistant Secretaries, each of whom shall
assist the Secretary and the Undersecretaries in the
formulation, determination and
implementation of laws, policies, plans, programs and projects on budget and management
and shall oversee the day-to-day administration of the constituent units of the Department.
CHAPTER 3
Department Services
SECTION 7. Management Services Office.—The Management Services Office shall consist of the
following bureaus:
(1) The Systems and Procedures Bureau which shall review and design the management reporting
systems,
review
and
evaluate
the
applicability
and
economics
of
computerization,
purchasing/inventory systems, formulate measures on internal controls to ensure accuracy, integrity
and reliability of records systems, and develop a system of controls for capital operational and cash
budgeting;
(2) The Organization and Productivity Improvement Bureau which shall develop performance
standards as bases for agency budgeting and performance evaluation, conduct studies on work
simplification and methods improvement, review the equipment procurement programs of agencies,
and prepare operations manuals and conduct continuing studies on organizational changes of
government agencies;
(3) The Compensation and Position Classification Bureau which shall classify positions and determine
appropriate salaries for specific position classes and review the compensation benefits programs of
agencies and shall design job evaluation programs.
SECTION 8. The Legislative, Administrative and Procurement Services Office.—The Legislative,
Administrative, Procurement and Services Office shall consist of:
(1) The Legislative Services which shall provide legal advice and service to the Department Officers
and employees, review legislative proposals and provide clarificatory opinions on budget laws.
(2) The Administrative Services which shall provide the services relative to personnel, records
management, allocation of property and supplies, and shall perform security and custodial functions.
(3) The Procurement Services which shall implement an integrated programs for the procurement of
supplies and materials for the Department.
SECTION 9. The Financial and Computer Services.—The Financial and Computer Services shall
consist of:
(1) The Financial Services which shall provide services relative to cash management, budgetary and
financial matters.
(2) The Data Processing Service which shall provide computer services, prepare and generate
management reports, maintain and operate computer-based information monitoring systems.
CHAPTER 4
Bureaus
SECTION 10. The Budget Operations Office.—The Budget Operations Office shall review and
analyze the work and financial flows, the budgetary proposals of national and local government
agencies and corporations, check each agency’s compliance with the budgetary policies and project
priorities, determine the budgetary implications of foreign-assisted projects from the time of project
design to the negotiation for financial assistance, prepare recommendations for fund releases,
formulate and implement fiscal policies and plans for budget preparation and control, and conduct
studies on economic trends and factors affecting government revenues, expenditures and borrowings.
It shall consist of the following Bureaus:
(1) National Government Budget Bureaus A and B which shall evaluate and review the budgetary
proposals, work and financial flows of the national government and ensure its compliance with
budgetary policies and project priorities of the bureaus assigned to each group.
(2) Local Government Budget Bureau which shall recommend and effect the release of National
Assistance for Local Government (NALGU) funds and those for autonomous regions based on
approved work and financial plans as limited by the Secretary.
(3) Government Corporation Budget Bureau which shall evaluate and analyze the budgetary
proposals, plans and financial flows of government corporations and agencies and ensure its
compliance with budgetary policies and project priorities;
(4) Budget Planning Bureau which shall assist the Secretary in the preparation and management of
fiscal policies and plans for budget coordination, conduct studies on economic trends and factors
affecting government revenues, expenditures and borrowings, and shall collaborate with the Office of
the President, Department of Finance, Central Bank, National Economic and Development Authority,
and other agencies in the formulation of financial plans.
(5) Foreign-Assisted Projects Bureau which shall review and evaluate foreign-assisted projects to
determine the annual funding requirements of certain projects identified by implementing agencies
and supported by foreign funding; assist the Secretary in determining the budgetary implications of
foreign-assisted projects from the time of project design to negotiations for financial assistance;
ensure the concurrence of the Secretary of Budget on all loan agreements; evaluate the workfinancial plan of projects chargeable against the Foreign Assistance Projects (FAPS) support fund;
and recommend and effect the releases from such fund based on the approved work financial plans
as may be directed by the Secretary.
SECTION 11. National Accounting and Finance Office.—The National Accounting and Finance Office
shall take charge of the maintenance of the data bank of financial information and shall provide the
necessary data required by the President, fiscal agencies and international financial institutions,
analyze and evaluate the accounts and overall financial performance of the government, and
supervise the management of the accounts of government agencies and instrumentalities. It shall
consist of the following Bureaus:
(1) National Government Account and Finance Bureau;
(2) Local Government Accounting and Finance Bureau; and
(3) Government Corporate Accounting and Finance Bureau.
SECTION 12. Regional Offices.—The Regional Offices shall implement the policies, programs,
standards and guidelines on budget administration and management in the regions.
INSTITUTING THE
“ADMINISTRATIVE CODE OF 1987″
Budget and Management
General Provisions
SECTION 1. Declaration of Policy.—The national budget shall be formulated and implemented as
an instrument of national development, reflective of national objectives and plans; supportive of and
consistent with the socio-economic development plans and oriented towards the achievement of
explicit objectives and expected results, to ensure that the utilization of funds and operations of
government entities are conducted effectively; formulated within the context of a regionalized
governmental structure and within the totality of revenues and other receipts, expenditures and
borrowings of all levels of government and of government-owned or controlled corporations; and
prepared within the context of the national long-term plans and budget programs of the Government.
SECTION 2. Mandate.—The Department shall be responsible for the formulation and
implementation of the National Budget with the goal of attaining our national socio-economic
plans and objectives.
The Department shall be responsible for the efficient and sound utilization of government
funds and revenues to effectively achieve our country’s development objectives.
SECTION 3. Powers and Functions.—The Department of Budget and Management shall assist the
President in the preparation of a national resources and expenditures budget, preparation,
execution and control of the National Budget, preparation and maintenance of accounting
systems essential to the budgetary process, achievement of more economy and efficiency in the
management of government operations, administration of compensation and position classification
systems, assessment of organizational effectiveness and review and evaluation of legislative
proposals having budgetary or organizational implications.
CHAPTER 2
CHAPTER 2
Department Proper
SECTION 4. Office of the Secretary.—The Office of the Secretary shall consist of his immediate staff,
the Budget Control Staff, Research Staff, a Regional Coordination Staff for Luzon, and a Regional
Coordination Staff for Visayas and Mindanao.
SECTION 5. Undersecretaries.—The Secretary shall be assisted by five (5) Undersecretaries, who
shall all be appointed by the President upon the recommendation of the Secretary. They shall
exercise supervision over the offices, services, operating units and individuals under their authority
and responsibility.
SECTION 6. Assistant Secretaries.—There shall be five (5) Assistant Secretaries, each of whom shall
assist the Secretary and the Undersecretaries in the
formulation, determination and
implementation of laws, policies, plans, programs and projects on budget and management
and shall oversee the day-to-day administration of the constituent units of the Department.
CHAPTER 3
Department Services
SECTION 7. Management Services Office.—The Management Services Office shall consist of the
following bureaus:
(1) The Systems and Procedures Bureau which shall review and design the management reporting
systems,
review
and
evaluate
the
applicability
and
economics
of
computerization,
purchasing/inventory systems, formulate measures on internal controls to ensure accuracy, integrity
and reliability of records systems, and develop a system of controls for capital operational and cash
budgeting;
(2) The Organization and Productivity Improvement Bureau which shall develop performance
standards as bases for agency budgeting and performance evaluation, conduct studies on work
simplification and methods improvement, review the equipment procurement programs of agencies,
and prepare operations manuals and conduct continuing studies on organizational changes of
government agencies;
(3) The Compensation and Position Classification Bureau which shall classify positions and determine
appropriate salaries for specific position classes and review the compensation benefits programs of
agencies and shall design job evaluation programs.
SECTION 8. The Legislative, Administrative and Procurement Services Office.—The Legislative,
Administrative, Procurement and Services Office shall consist of:
(1) The Legislative Services which shall provide legal advice and service to the Department Officers
and employees, review legislative proposals and provide clarificatory opinions on budget laws.
(2) The Administrative Services which shall provide the services relative to personnel, records
management, allocation of property and supplies, and shall perform security and custodial functions.
(3) The Procurement Services which shall implement an integrated programs for the procurement of
supplies and materials for the Department.
SECTION 9. The Financial and Computer Services.—The Financial and Computer Services shall
consist of:
(1) The Financial Services which shall provide services relative to cash management, budgetary and
financial matters.
(2) The Data Processing Service which shall provide computer services, prepare and generate
management reports, maintain and operate computer-based information monitoring systems.
CHAPTER 4
Bureaus
SECTION 10. The Budget Operations Office.—The Budget Operations Office shall review and
analyze the work and financial flows, the budgetary proposals of national and local government
agencies and corporations, check each agency’s compliance with the budgetary policies and project
priorities, determine the budgetary implications of foreign-assisted projects from the time of project
design to the negotiation for financial assistance, prepare recommendations for fund releases,
formulate and implement fiscal policies and plans for budget preparation and control, and conduct
studies on economic trends and factors affecting government revenues, expenditures and borrowings.
It shall consist of the following Bureaus:
(1) National Government Budget Bureaus A and B which shall evaluate and review the budgetary
proposals, work and financial flows of the national government and ensure its compliance with
budgetary policies and project priorities of the bureaus assigned to each group.
(2) Local Government Budget Bureau which shall recommend and effect the release of National
Assistance for Local Government (NALGU) funds and those for autonomous regions based on
approved work and financial plans as limited by the Secretary.
(3) Government Corporation Budget Bureau which shall evaluate and analyze the budgetary
proposals, plans and financial flows of government corporations and agencies and ensure its
compliance with budgetary policies and project priorities;
(4) Budget Planning Bureau which shall assist the Secretary in the preparation and management of
fiscal policies and plans for budget coordination, conduct studies on economic trends and factors
affecting government revenues, expenditures and borrowings, and shall collaborate with the Office of
the President, Department of Finance, Central Bank, National Economic and Development Authority,
and other agencies in the formulation of financial plans.
(5) Foreign-Assisted Projects Bureau which shall review and evaluate foreign-assisted projects to
determine the annual funding requirements of certain projects identified by implementing agencies
and supported by foreign funding; assist the Secretary in determining the budgetary implications of
foreign-assisted projects from the time of project design to negotiations for financial assistance;
ensure the concurrence of the Secretary of Budget on all loan agreements; evaluate the workfinancial plan of projects chargeable against the Foreign Assistance Projects (FAPS) support fund;
and recommend and effect the releases from such fund based on the approved work financial plans
as may be directed by the Secretary.
SECTION 11. National Accounting and Finance Office.—The National Accounting and Finance Office
shall take charge of the maintenance of the data bank of financial information and shall provide the
necessary data required by the President, fiscal agencies and international financial institutions,
analyze and evaluate the accounts and overall financial performance of the government, and
supervise the management of the accounts of government agencies and instrumentalities. It shall
consist of the following Bureaus:
(1) National Government Account and Finance Bureau;
(2) Local Government Accounting and Finance Bureau; and
(3) Government Corporate Accounting and Finance Bureau.
SECTION 12. Regional Offices.—The Regional Offices shall implement the policies, programs,
standards and guidelines on budget administration and management in the regions.
