Section 29 (1), Article VI of the 1987 Constitution provides, “No money shall be paid out the Treasury except in pursuance of an appropriation by law.” Accounting for budgetary accounts formally commences upon the enactment of the General Appropriations Act (GAA), which contains the legal authorization to use public money for the various programs, activities and projects of the national government. The approved appropriations are in turn, the bases of the Department of Budget and Management (DBM) for issuing allotments or the authority of government agencies to incur obligations or enter into commitments to spend government funds. The level of allotments, on the other hand, defines the amount of cash allocations which shall be released by the DBM.

ACCOUNTING SYSTEMS
General Accounting Plan (GAP) shows the overall accounting system of a government agency/unit. It includes the source documents, the flow of transactions and its accumulation in the books of accounts and finally the conversion into financial information/data presented in the financial reports. 1. Budgetary Accounts System

2. Receipt/income and Deposit System
3. Disbursement System
4. Financial reporting system

The National Budget
Budgeting – basically planning and control.
Planning– involves the development of future objectives and the preparation of the various budgets to achieve these objectives. Control – involves the steps taken by management to ensure that the objectives set down at the planning st...

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