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Department of Budget and Management

Department of Budget and Management

With the passage of the Jones Law in 1916, the Philippine Legislature was set up with two chambers: the Philippine Senate and the House of Representative. The governor-general was to submit, within 10 days of the opening of the legislature's regular session, the annual budget. Two years later, the Council of the State was formed to prepare the budget that the governor-general was required to submit to the Philippine Legislature.

A budget office was formed to assist in the preparation, enactment and implementation of such appropriations made by law. Four divisions made up the Office: a budget division took charge of agency regular budgets; an expense-central division took care of special budgets; a service inspection division screened appointments and requests for the creation of positions, and an administrative division handled routine administrative matters.

The Constitution of 1935 established both budget policy and procedure, which were amplified in a series of laws and executive acts over the years.

The Budget Commission was established by Executive Order (EO) No. 25 issued on April 25, 1936. It became a ministry by virtue of Presidential Decree (PD) No. 1405, signed on June 11, 1978. Following the pattern in the United States Federal Government, the Budget Commission was, and the Ministry of the Budget continued to be, part of the Office of the President and separate from the other fiscal agencies of government that form part of the Ministry of Finance.