BUDGETING THE EDUCATION PLAN

PREPARED BY: RONALD DECHOS GOMEZ

Why is budgeting so important?
 Since budgeting allows you to create a spending plan for
your money, it ensures that you will always have enough
money for the things you need and the things that are
important to you. Following a budget or spending plan will
also keep you out of debt.
Objectives of Budgeting
 The purpose of Budgeting is to provide educational
opportunities for every students in an educational institution.

 1. Be balanced so that current revenues are sufficient to

pay for current services.
 2. Be prepared in accordance with all applicable federal,
states and local legal mandates and requirements.
 3.Provide a basis for the evaluation of the School’s service
effort, cost and accomplishment.
Budgeting and Planning
 STEPS ON BUDGETING PROCESS

 1. Identification of programs, projects and activities to be implemented during the budget

period.
 2. Identification of resources – manpower, financial, physical and other resources required
to carry out the programs, projects, and activities and the quantities for each resource.
 3. Costing of resources which would translate the resource requirements into their monetary
values.
 4. Preparation of the budget in accordance with the mandated form and content spelled
out in guidelines issued for this purpose.
 5. Securing official authorization to allocate and use resources.
The Budget Cycle
PREPARATION
 The beginning of the budget cycle should be started early in the year preceding the budget year.
 Preparing the budget is not synonymous with preparing a cash flow statement.
 An effective budget system must be conducted on a year-round basis.
 Preparations should include an assessment of the past to see if actual and estimated revenue resulted in
favorable or unfavorable results.
 There should also be projections based on past experiences as well as future expectations such as new
program needs, taxable property projects, new businesses and industry, anticipated enrollment trends,
inflation, etc.
 This analysis may require personnel officers, transportation coordinators, food service managers, plant
managers, federal program coordinators and at times assistance from outside consultants.
 The budget preparation and analysis are followed by board review and adoption of the budget.
 The remainder of the year is devoted to budget control, which is comprised of comparing estimated revenues
and appropriations with actual transactions and evaluating budget adjustment requests. This process is called
the operating budget cycle.
NATIONAL BUDGET PROCESS
 A. Budget Preparation

 1. In the preparation of the budget, each

department or agency of the government is given
a ceiling or budget level. The Development Budget
Coordination Committee (DBCC), a NEDA Board
Committee, determines the budget level. It is
composed of the Secretaries of the Budget, NEDA,
Finance and the Governor of the Central Bank of
the Philippines.
NATIONAL BUDGET PROCESS
 A. Budget Preparation

 2. The DBCC estimates the anticipated revenues

of the government on the basis of historical
performance projections of economic conditions in
the incoming year and revenue impact of
proposed revenue measures. It likewise estimates
the cost needed in the implementing the projects
that will achieve the established goals in the
development plan.
NATIONAL BUDGET PROCESS
 A. Budget Preparation

 2. The DBCC estimates the anticipated revenues

of the government on the basis of historical
performance projections of economic conditions in
the incoming year and revenue impact of
proposed revenue measures. It likewise estimates
the cost needed in the implementing the projects
that will achieve the established goals in the
development plan.