Philippine Budget Process Explained | How Government Spends Your Taxes — Transcript

Full transcript

1. 0:05[Musika]
2. 0:11Have you ever wondered where your taxes
3. 0:13actually go? Like when you buy milk tea
4. 0:15or gas and see that tiny vat added? Who
5. 0:19decides how that money is spent? Well,
6. 0:22it does not just magically disappear
7. 0:24into some giant government piggy bank.
8. 0:26It goes through a very detailed and
9. 0:28sometimes dramatic budget process.
10. 0:32Welcome back to Project Accounting, your
11. 0:34guide to mastering accounting one
12. 0:36concept at a time. And today we're
13. 0:39breaking down how the Philippine
14. 0:40government turns every collected into
15. 0:43roads, schools, hospitals, and yes, even
16. 0:47free Wii in barangay halls. Stick around
17. 0:50because understanding this process is
18. 0:52like holding the government's receipts
19. 0:53in your hand.
20. 0:57The national budget is basically the
21. 0:59government's game plan for the year.
22. 1:01Think of it like a family budget except
23. 1:04instead of saving for tuition or
24. 1:05groceries, the government's budget
25. 1:08covers trillions of for public services,
26. 1:11infrastructure and social programs. And
27. 1:14just like in any household, the budget
28. 1:17answers two big questions. Where does
29. 1:19the money come from and where does it
30. 1:22go?
31. 1:25But here's the twist. The Philippine
32. 1:27budget is not made overnight. It goes
33. 1:29through four big faces like a Netflix
34. 1:32series with four episodes each with its
35. 1:35own cliff hanger.
36. 1:39Episode 1 starts with the executive
37. 1:41branch the president and the department
38. 1:43of budget and management or DBM. This
39. 1:46happens about 18 months before the
40. 1:48actual fiscal year. So imagine the
41. 1:51government already thinking of 2027's
42. 1:53budget in early 2025. Here's how it
43. 1:57unfolds. First, the budget call. DBM
44. 2:00sends a memo to agencies saying, "Hey,
45. 2:02it's budget season. Tell us what you
46. 2:05need."
47. 2:05Next, agencies submit their proposals
48. 2:08like wish lists for projects, salaries,
49. 2:11and programs. Then DBM reviews this
50. 2:15requests and holds budget hearings. Kind
51. 2:18of like agency defense sessions where
52. 2:20they justify why they need the funds.
53. 2:23Finally, DBM compiles everything into
54. 2:25the national expenditure program or NAP
55. 2:29which the president reviews and sends to
56. 2:31Congress. So the big output here, the
57. 2:34NAP, the government's draft budget
58. 2:37proposal.
59. 2:40Now the story moves to the con.
60. 2:45The MP lands in the house of
61. 2:47representatives and the committee on
62. 2:49appropriations holds hearings. Agencies
63. 2:53show up again to defend their budgets,
64. 2:55picture it like a budget talent show but
65. 2:57with power instead of singing.
66. 3:00From here, the house drafts the general
67. 3:03appropriations bill or Gab. This bill is
68. 3:06then sent to the Senate where the
69. 3:08committee on finance holds its own
70. 3:10review. Of course, the House and Senate
71. 3:13rarely agree 100%. So, they form a
72. 3:16bicameral conference committee to iron
73. 3:19out the differences. The final
74. 3:21harmonized version, that's the gab sent
75. 3:24to the president's desk.
76. 3:27All right. So, the president signs the
77. 3:30Gab into law and it becomes the general
78. 3:32appropriations act or Gaa. This is where
79. 3:35the plan turns into action. Here's how
80. 3:38it works. DBM issues special allotment
81. 3:41release orders saros to agencies.
82. 3:44Agencies then obligate funds, meaning
83. 3:47they enter contracts or commit to
84. 3:49projects. Finally, they make
85. 3:51disbersements which is the actual
86. 3:53payment for goods and services.
87. 3:56This is the stage where budget lines
88. 3:57become real world results. Roads paved,
89. 4:00classroom builts, nurses paid, and
90. 4:03social programs delivered.
91. 4:06But wait, the story does not end with
92. 4:09spending. Q episode 4 accountability.
93. 4:13Agencies submit financial and
94. 4:15performance reports. Then the commission
95. 4:18on audit or COA comes into check if
96. 4:21funds were spent legally and
97. 4:22effectively. Congress and DBM also
98. 4:25evaluate performance. And here's my
99. 4:28favorite part. The public gets to pick
100. 4:31through initiatives like the people's
101. 4:33budget, ordinary citizens can track
102. 4:36where the money goes. It's like checking
103. 4:38your groupmates receipts after a group
104. 4:40project, making sure they didn't use
105. 4:43your share for milk tea.
106. 4:46So, in case you need a quick recap,
107. 4:48preparation, executive drafts the NAP,
108. 4:51legislation, Congress debates, passes
109. 4:54the gab and it becomes the GA. Execution
110. 4:59agencies roll out programs and projects
111. 5:01and accountability. COA Congress, DBM
112. 5:05and citizens check if money was well
113. 5:07spent and that's the Philippine budget
114. 5:10process a cycle that turns every peso of
115. 5:13tax money into action while making sure
116. 5:15no one spends it carelessly. It is not
117. 5:18perfect but it is built on checks,
118. 5:21balances and public scrutining. If you
119. 5:24found this breakdown helpful, don't let
120. 5:26it stop here. Hit that like button,
121. 5:28subscribe for more educational deep
122. 5:30dives, and share this video with someone
123. 5:33who complains about taxes. They might
124. 5:35just thank you later. See you in the
125. 5:37next video.
126. 5:39[Musika]