The Government Budget Process and Accounting Framework

Comprehensive vocabulary flashcards definitions covering the national budget cycle, legal concepts, budget registries, expenditure classifications, accounting entries, and revenue types based on government accounting lecture notes.

National Budget

The government's estimate of the sources and uses of government funds within a fiscal year.

Budget Cycle

The four-phase process summarizing the formulation and eventual utilization of the national budget, consisting of Budget Preparation, Budget Legislation, Budget Execution, and Budget Accountability.

Incremental Budgeting

A budgeting approach where the current year's budget is formulated based on the previous year's budget using a 'roll-over' approach.

Zero-Based Budgeting

A budgeting approach where the current year's budget is formulated without regard to the previous year's budget using a 'back-to-zero' or 'clean slate' approach.

Budget Call

An official document issued by the Department of Budget and Management (DBM) to all government agencies that signals the start of budget preparation.

Balanced Budget

A budget where estimated revenues are equal to or exceed estimated expenditures.

Annual Budget

A budget covering a period of one year that forms the basis for the annual appropriation.

Special Budget

A budget that provides for items not covered or included in the General Appropriations Act.

Line Item Budget

A budget that focuses on specific expenditures such as salaries and wages, travel expenses, freight, supplies, materials, and equipment.

Performance Budget

A plan of activities to be undertaken, including their related costs, with an emphasis on meeting targets and desired results.

Obligations Budget

A budget focusing on expenditures incurred in the current year which are to be paid either in the same year or in the following year.

President's Budget Message

A document included in the President's Budget that contains the President's explanation of the country's fiscal policy and budget priorities.

National Expenditure Program (NEP)

A budget document containing the details of all government entities' proposed expenditures in the coming year.

Budget of Expenditures and Sources of Financing (BESF)

A budget document containing estimated expenditures accompanied by estimates of expected sources of financing.

Appropriation

A legislative authorization to allocate funds for specific purposes.

Approved Budget

Expenditure authority derived from appropriation laws, government ordinances, and other decisions related to anticipated revenue or receipts for the budgetary period.

New General Appropriations

Annual spending limits approved via the General Appropriations Act (GAA).

Continuing Appropriations

Unspent funds rolled over from previous periods.

Supplemental Appropriations

Additional funding approved to cover budget deficits or urgent needs.

Automatic Appropriations

Pre-approved funding fixed by law, such as debt servicing and retirement funds.

Unprogrammed Funds

Standby allocations released only when surplus revenues or loans are secured.

Retained Income/Funds

Income generated by agencies that is kept for their own operational use.

Revolving Funds

Self-replenishing funds derived from business-like operations.

Trust Receipts

Money held by government agencies for specific third-party purposes or legal trusts.

Budget Execution Documents (BEDs)

Documents submitted by agencies summarizing fiscal-year plans and performance targets, including physical/financial plans, monthly cash programs, and estimates of monthly income.

Government-Owned and Controlled Corporations (GOCCs)

Corporations owned or controlled, directly or indirectly, by the government and vested with functions relating to public needs.

Allotment

An authorization issued by the DBM to government agencies to incur obligations for specified amounts contained in a legislative appropriation; also known as obligational authority.

Obligation

An act of a duly authorized official that binds the government to the immediate or eventual payment of a sum of money.

Allotment Release Program (ARP)

A program formulated by the DBM to set limits for allotment releases during the upcoming year and serve as a control device.

GAARD (General Appropriations Act Release Document)

Authority for the comprehensive release of budget items under the General Appropriations Act.

GARO (General Allotment Release Order)

General authority issued to National Government Agencies to incur obligations for specified expenditures.

SARO (Special Allotment Release Order)

Authority issued for For Later Release (FLR) items and certain special-purpose funds.

Budget Accountability

The phase occurring concurrently with Budget Execution where actual results of government activities are regularly monitored against planned targets.

Responsibility Accounting

A system of providing cost and revenue information over which a specific manager has direct control.

Responsibility Center

A part, segment, unit, or function of a government agency headed by a manager who is accountable for a specified set of activities.

Controllable Costs

Costs that a manager has the power to incur within a given period at a given level of managerial responsibility.

Non-controllable Costs

Costs incurred indirectly and allocated to a specific responsibility level.

Government Accounting

The process comprising activities of analyzing, recording, classifying, summarizing, communicating transactions involving government funds and property, and interpreting results.

General Journal

An accounting journal used to capture non-routine transactions or adjustments that do not fit into special journals.

Cash Receipts Journal

A special journal used to track all cash collections and deposits coming into an agency.

Cash Disbursement Journal

A special journal used to record cash payments made directly out of cash or petty cash funds.

Check Disbursement Journal

A special journal used to track payments made specifically through checks or bank transfers.

Registries of Revenue and Other Receipts (RROR)

Budget registries used to monitor budgeted amounts, actual collections, and remittances of revenue and other receipts.

Registries of Allotments, Obligations, and Disbursements (RAOD)

Budget registries used to monitor allotments received, obligations incurred, and actual disbursements made.

Registries of Budget, Utilization, and Disbursements (RBUD)

Budget registries used to record approved special budgets along with corresponding utilizations and disbursements charged to retained income.

Personnel Services (PS)

An expenditure object classification pertaining to all types of employee benefits such as salaries, bonuses, allowances, and cash gifts.

Maintenance and Other Operating Expenses (MOOE)

An expenditure object classification pertaining to operational expenses other than employee benefits and financial expenses, including travel, utilities, and supplies.

Financial Expenses

An expenditure object classification pertaining to finance costs such as interest expense, bank charges, and losses on foreign exchange transactions.

Capital Outlays (CO)

An expenditure object classification pertaining to capitalizable expenditures on the construction of public infrastructure, acquisition of equipment, and other capital assets.

Obligation Request and Status (ORS)

The primary document used to request, certify, and document the incurrence and status of government obligations.

Notice of Obligation Request and Status Adjustment (NORSA)

A document used to execute positive or negative adjustments to obligations previously recorded in the RAOD and ORS.

Notice of Cash Allocation (NCA)

A cash authority issued by the DBM specifying the maximum amount of withdrawal an agency can make from a government bank for a period.

Registry of Allotments and Notice of Cash Allocation (RANCA)

A registry used to determine allotments not covered by NCA and to monitor the available balance of NCA.

Registry of Allotment and Notice of Transfer of Allocation (RANTA)

A registry used to determine allotments not covered by NTA and to monitor the available balance of NTA.

Disbursement

The actual release or payout of funds from an account to settle a financial obligation.

Tax Remittance Advice (TRA)

A document used to record constructive remittances of taxes or customs duties withheld and constructive receipts of NCA and revenue.

Revised Chart of Accounts (RCA)

A structured listing of standard account titles and 8-digit codes issued by COA for use by government entities.

Revenue

The gross inflow of economic benefits or service potential during the reporting period that increases equity, other than contributions from owners.

Receipts

Actual cash collections from all sources received during a given period.

Exchange Transactions

Transactions in which one entity receives assets or services and directly gives approximately equal value to another entity in exchange.

Non-Exchange Transactions

Transactions in which an entity receives value from another entity without directly giving approximately equal value in exchange, such as taxes, fines, and donations.

Services In-Kind

Non-exchange services received (e.g., technical assistance, volunteer work) that are not recognized as revenue due to uncertainties in control and measurement.

Bequests

Transfers of resources made according to the provisions of a deceased person's will.

Pledges

Unenforceable undertakings to transfer assets to a recipient entity, which are not recognized as revenue until the items are actually transferred.

Concessionary Loans

Loans granted at below-market terms, requiring evaluation of any non-exchange element as revenue or liability.

Non-Cash Availment Authority (NCAA)

A disbursement authority covering non-cash disbursements, such as direct payments made by foreign lenders to suppliers.

Cash Disbursement Ceiling (CDC)

A cash authority issued to Foreign Service Posts allowing them to utilize their income for operating costs.