The Department of Budget and Management, created under Executive Order No. 25 dated April 25, 1936, is mandated under this Order and by subsequent issuances to promote the sound, efficient and effective management and utilization of government resources (i.e., technological, manpower, physical and financial) as instrument in the achievement of national socioeconomic and political development goals.


The Department of Budget and Management shall lead public expenditure management to ensure the equitable, prudent, transparent and accountable allocation and use of public funds to improve the quality of life of each and every Filipino.


By 2020, we envision the Department of Budget and Management to be:

  • A champion of results-oriented budget and management policies and practices that enable the government to steer the country towards meaningful development that empowers the poor and the marginalized;
  • An implementer of world-class budget and management systems that enhance transparency, accountability and public participation in governance;
  • An institution composed of highly competent and motivated public servants who observe the highest standards of professionalism and integrity.

General Functions

Following are the general functions of the Department:

Formulates the overall resource application strategy to match the government’s macroeconomic policy;

Prepares the medium-term expenditure plan, indicating the programming, prioritization, and financing of capital investment and current operating expenditure requirements of medium-term sectoral development plans;

Undertakes the formulation of the annual national budget in a way that ensures the appropriate prioritization and allocation of funds to support the annual program of government;

Develops and administers a national accounting system essential to fiscal management and control;

Conducts a continuing study of the bureaucracy and assesses as well as makes policy recommendation on its role, size, composition, structure and functions to establish a government bureaucracy imbued with a spirit of public service;

Establishes the rules and procedures for the management of government organization resources i.e., physical, manpower and other resources, formulates standards of organizational program performance; and undertakes or provides services in work simplification or streamlining of systems and procedures to improve efficiency and effectiveness in government operations;

Conceptualizes and administers the government’s compensation and position classification plan; and

Monitors and assesses the physical as well as the financial operations of local government units and government-owned and/or – controlled corporations.