The Philippine Budget System

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The Philippine Budget System Kalaw, Maximo M.

Kalaw, Maximo M. " The Philippine Budget System. " Chap. 3 in SelfGovernment in the Philippines. New York: The Century Co., 1919. Pp. 44-58.

SUMMARY: Maximo M. Kalaw discusses the budget system of the American colonial government. He narrates that prior to the passage of Jones Law in 1916, the preparation and passage of the appropriation bill are not coordinated. The governor-general controls the budget process hindering the Philippine Assembly from fulfilling its mandate. He says that although the Jones Law does not provide a budget system, it has helped to institute preliminary steps towards a systematic appropriation of public funds. The newly reorganized Department of Finance shall coordinate the expenditure plan of all departments. And then the newly created Council of State, composed of the cabinet members and the presiding officers of both houses of Philippine Legislature, shall propose a budget which shall be sent to Congress for its approval. Kalaw concludes that this new formal budget system has helped the government to

achieve a more balanced budget and reduced national debt. fiscal policy-American period, Cooper Act, Organic Act of 1902, Jones Law, Philippine Assembly, Philippine Commission, power of the governor-general, appropriation bills-American period, Francis Burton Harrison, fiscal legislation-American period, budget system-establishment of, Department of Finance, Council of State, executive-legislative relations, separation of powers, Philippine treasury-improvement of One of the first governmental reforms carried out by the Philippine Legislature after the establishment of an autonomous government under the Jones Law was a budget system. The movement originated in the Philippines, as neither the first Organic Act of the Philippines, the Act of 1902, nor the Jones Law , suggested the establishment of the system. And the system that was established under the Organic Act of 1902 was, from the standpoint of a responsible democratic government, even worse than any American system on the continent, for it completely took away from the representatives of the people their rightful share in the appropriation and disbursement of public funds.

The Organic Law of 1902 provided that all appropriations must be made by law. (Sec. 5, Par. 15.) This apparently gave the Philippine Assembly ,

established in 1917 1 , co-equal power with the Philippine Commission in money

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