Statemanship in budgeting

Media

Part of Philippine Armed Forces Journal

Title
Statemanship in budgeting
Language
English
Source
Philippine Armed Forces Journal Volume IX (No. 5) March 1956
Year
1956
Rights
In Copyright - Educational Use Permitted
Fulltext
Government budgeting has its own demand for statesman ship from the time the budget is prepared up to the time fund'i are allocated and later accounted for in a system where there shou.ld not be ouer-centralizQfion of accounting authority ·~~ ~~mJ~ HE LIFE CYCLE of gov- budget, after a thorough study of ernment budgeting begins with the the matter. It is reasonable to exbudget policy statement of the Pre!i- pect that such a study has been ident. With the interest of the thoroughly made by the National whole country in mind, he indicates Economic Council. And, as an imwhat his fiscal plan is for the nn- mediate staff office of the execution in any specific year. tive, the Budget Commission can be The President usually issues a po- expected as usually furnishing pert\ icy statement, including that on the inent data before the President makes any commitment. his department's level, based on the directive issued in accordance with the budget policy of the President. The chicC o[ bureau or office does the same on his level A budget directive results in the determination of programs and projects which are translated mto peso costs preferably as far as units of work measurements. The estimate results are funnelled upward where they undergo a series of reviews. Honest Budget Review Budget reviews are no more than general surveys, re-examinations, or - critiques on the proposed budgets lila formulated. Such reviews are expressed in the form of a systematic statement, and slated definitely and clearly, in terms of the forrnu - la enunciated by the President. It is computed pursuant to the guidance furnished by the Commissioner o[ t!te Budget. In a school Ol' collPge, a budget review is likened to a re:petition of a lesson after its original assignment with the difference that the reviewer is not the same person as the one to whom the lesson was originally assigned. Actually, it is the Commissioner of the Budget that interprets the budget formula of the President. He sets up the requirements and at the same time iudicates the methods and procedures to be followed in accordance with the formula. The Commissioner of the Budget does this by the issuance of a budget circular which has the weight and force of a directive coming from the President himself. Actually, reviewing a budget means that the reviewer has to detach himself from the personal angle of the problem, like the ideal researcher, to remove bias and un· fairness not much to the agency concerned but more in favor of the general welfare. In the military, it is about the same as that of an inspection: to determine the state of discipline, the condition of the equipment, the actual morale of the troops, and the like. It is the duty of a Secretary of a Department to 11repare his plans at It is necessary that a reviewer be up-right, honest, careful and true to On the notoono! le•el. the only po"'e' thor con authorize o budget" the Congr•u of rh~ Phohpp•tles, co,.,;,,.,g of the Houu• ol Repre•entotiuo and the Senote his oath to uphold the ideals of his ties. The combination this year o(. government and sincere in his ac- proposed current and capital expentions for the benefit and good of ditures of the national government his country. This is or should be together with the proposed public of equal application to all types of works outlays during the budget budget reviewers, whether a mem- year beginning from 1 July 1956 is her of the budgeting agency, the in the proper direction. It is good budget commission, or of the law- mainly for clarity because the budmaking body. For to be otherwise, gets of all units that compose the a reviewer, regardless of the agency whole arc added together to give which he represents, would be be- the sum of the whole. traying his employment and the ve- To integrate, however, is ,l_lot an ry people who are footing his sala- easy matter even on the agency !cry in the expectation that he will vel. Actually, there is a lot more be of help in their government in hardship in integrating the budget particular, and to them in general. at intermediate or higher levels beModern Concept of Budgeting cause the factors of (I) economy of One of the more modern concept the country, (2) administrative neeof government budgeting envisions essity and (3) political expediency a single budget document for a cer- necessarily come into the picture. tain definite period for all activi- It is natural that estimating units have tho:! tendenC)' to inflate the cost of their requirements. The practice is not only dishonest but also it mislends the reviewer who, in almost all cases, will he forced to apportion what small ceiling he has at his command. It is more dangerous 11hen the reviewer is one who is nul fl·um the agency concerned because such a J"evicwer, being unfamiliar with the working characteristic~ of th<' agency, will have a tendency of trusting mere!)· to his general knowll'llgc which, in the past, has p1·ove<l to be unreliable. There is one pnctice that is commendable in this connection and that during a budget year demand~ not is the courtesy of having the agency select where to cut when the cut• tin~ is t o be imposed. It should be encouraged by the powers that he in the office where reviewers, regardless of what lev<'!, arc con1\f'cted. only industry but also patience and readiness to understand problems of national import. The ascertainment by Congress of how much of the government's income should be allocated to a particular activity is as difficult if not actually hanll'r to do Budget Author1ty considering the unending list of proOn the national level, the <l:1ly jects, all apparently af; important as power that can authorize a budget the other, demanding funds anrl i~ the Congress of the Philippines more funds. r•msisting of the House of Repre- The incidence of balancing the in-~f'ntatii"CS anrl the Senate. Spcci- come against the expenditure!'i refical!y, it i~ Congress that invests suiting from the unprogressive but a budget \\·ith authority, C!f legal ne1·ertheless unavoidable proccduro:> )lower. Stating it in another way, of minimizing the expcnditurf's heit i~ onlr Congro:>s~ whic-h can au- cause of the inadequacy of incoml'" thoriz<', appro,·P, pf'rmit, or sanction is of course readilr rf'coguizf'<i. :l national budget. Statemanship should, howc\"l•r hf', th,. Ru<iget authorization, hr Cungress, focus of attention in any casf' if i~ ct>rtainl~· a difficult JH"OtPas and our young Republic is to h<> <"11'1"('\invo],·es r 1 J <'Scertainment of what oped properly. the ~overnmcnt can appropriatP, and One rea~on why ~rcat t:are should (2) how much of the go\'Prnment's always he the rule when pa~sinJZ: income Congress is willint:: t .. allo upon the me1·iu; of a [HOIJOf;<>ll nac;~tc to a. particular activity. tio1111l budget is its importanr<' to The dl'tcrminatinn of whHI s11all tl1t"" country an.-1 its peopk Spccithc !llCOmf' of th" governmcn1. be fH;allv. !h~ mant-y allocation may be so little that accomplishment intend- propriation from the govemment, it ed to be achieved may turn out to is but proper to demand that the be too big an order. Another is be- same operating agency state the mocause an insignificant acth•ity may neys received and spent Juring a be given funds over and abO\"e what given period. Actually, this is be· it really needs with the result that ing made now. But it is being made while one agency which should have b)' the Budget Commission through been given more is having a hard its representative in the agency. time, the other agency which has Why? Because the Commissioner of a less priority right for more funds the Budget hns an over-nil control is taking it easy. of all accounting services in the na· Performa nce Budget tiona] government much against thl." In performance budgeting, the fo· ever-denfening cry against too much cus is on the accomplishment. The centralization in this country acactor, naturally, is the operating cording to public administration exagency, The agency's heari, the1·e· perts. fore, should be afforded all the means and de\·ices to enable him to Moreover, accountability has a• show beneficial results of his admi· more practical approach now than nistration. the olrt and almost useless trial baUnder the ]ll"esent scheme of lancl" method. Actually, the more things. however, the accounting se r- modern meaning of accountability \'ice which is for all intents and is that it is a statement of accomJlUrposes a managerial tool, is not plishments in terms of how much an a part of the operating agency. In agency has spent for each. The !ataddition, there is also an auditor in ter is definitely better because it each operating agenc~' that tends to is more understandable and thl.'rebe more of a hindrance in operat-ion!' fore can really be up to dat(' to than a help. serve as a managerial instrument to Specifically, the accounting sen·ice better sen·e for purposes of good should he transferred from the Bud- management. get Commission as envisioned in the bill of Senator Gil J . Puyat about two years ago. The auditing sei'Vice should be limited to post audit rath· er than pre-audit if the intention is to really give the operating agencies a fai r chance to achieve what the~· are ex pected to accomplish with the small amount of funds that the gover nment can afford to appro· priate for them. Over. Centralization When an agency receives an apIn an atmosphere where the accounting service is the responsibility of the Commissioner of the Budgt.>t and the pre-audit system being. the focus of activity of the Auditor Gen~ eral, it is doubtful wht>ther an op· erating agency can be accountable to anybody for what it is doing. The thing is this: Can one cook be responsible for a menu when ac· tually there are three cooks in all who made it ?