New budget system set in 2018 — DBM
The government’s national budget will transition to a new structuring system in 2018, which classifies expenditures by programs to improve transparency and ensure that agencies achieve their objectives and mandate.
Budget Secretary Benjamin Diokno issued National Budget Circular 569 dated Feb. 8, which laid out the process by which agencies can start adopting a program expenditure classification- based performance- informed budgeting (PREXC-PIB) starting fiscal year 2018 onwards.
PREXC structures an agency’s budget by grouping all recurring activities and projects under appropriate programs or key strategies. It will replace the major final outputs (MFO) as the means to structure the national budget.
“Recurring activities and projects, that contribute to a common particular organizational objective or outcome shall be grouped into a program under that outcome,” according to the circular.
“This is being done to better articulate in the agency budget the programs and strategies being employed by the agency to achieve its organizational outcomes,” it said.
The DBM is focusing more on programs or strategies that would better assess an agency’s performance.
“More so, that performance information is provided for each program, revising the agency-wide approach under the Organizational Performance Indicator Framework (OPIF),” the DBM said.
“Adopting a PREXC-based PIB, therefore, aims to facilitate the evaluation of the impact of agency strategies or interventions and provide better information for planning, prioritization, and the organizational management of agencies,” it said.
Unit heads and program managers of each agency are also recommended to take part in the formulation of the performance indicators per program.