The commercial. (Union City, Tenn.) 190?-193?, 1919-10-17

IN THE PHILIPPINES

by the all-Filipino Legislature after
the establishment of an autonomous
government under the Jones Law was
budget system. The movement or
iginated in the Philippines, as this
reform has not yet been adopted by
the American Congress.
Previous to the creation of the
budget system bills appropiating
money were introduced in hit-or-
miss fashion, following no systema-
tized and unified scheme of the ma
tional improvement. They were con-
sidered on their individual merits,
and not on a well-defined fiscal plan
for the entire country. They were
not based on any possible amount
of revenue that might be gathered.
Thousands of this kind of bills were
introduced at evory session. Had
they all passed the resources of the
country for the next ten years would
have been exhausted. We never
knew whether we were expanding
more than we were earning. We
never learned even more or less de-
fnitely whether we were run
ming into bankruptcy or not. This
was shown to be the fact when on
the assumption of Office by Gov
enor Harrison there were wide assev-
crations that the Philippine Govern.
ment had been running headlong
towards financial ruin. For three
years prior to 1913" says Governor
Harrison in his first message, "the
Government had expended from two
to two and half million pesos year
| ly in excess of its ordinary income,
and in 1913 had expended more than
1000, 900 pesos of our income" Seven
million pesos in excess of our income!
The fact had never been openly COM
municated to the people or their
representatives.
This condition was solved by the
budget system. The old practice OF
having bureau chiefs prepare and
submit their estimates was changed.
Their estimates must now &c to the
department head for revision.
Before the preparation of the bud
get a general line of policy is first
agreed upon by the cabinet in meet
ing in which the presiding officers
of both houses are also present.
Once the general policy is agreed
upon a circular is sent in July to all
offices and bureaus requesting them
to send in their estimates which
should include the probable receipts
and the proposed expenditures for
| the coming year. These estimates
are made under the supervision and
control of the department heads who
have control of the department
heads who have the power to cut
down or add items. These different
estimates are then submitted by the
department heads to the Secretary
of Finance not later than August 20
of every year. The main work of the
Department of Finance is to coordi-
nate the different departmental esti-
mates in accordance with the gener-
al plan agreed upon at the Cabinet
meeting. The final budget is ap-
proved at the meeting of the Cabinet
in which the presiding officers of the
houses attend, and the Governor Gen.
eral then submits it with message
to the Legislature. The message is
read by the Secretary of Finance in a
Joint session of the Legislature. The
lower house, by agreement with the
upper, is the first one to take up the
budget. 1t sets date for the appear
ance of the Secretary of Finance to
explain the details of the budget
and to answer all questions PROFOUND
ed by the members. This appearance
usually lasts five days and full oppor-
tunity is given the minority party
to discuss the several items of the
bill. To explain further the details
of the budget, the individual depart
mental secretaries may be called, al
though this is not often rcSorted to
the Secretary of Finance generally
assuming responsibility for the whole
budget. 1t is the general rule IN
the discussion of the budget that the
Legislature may diminish the esti
mates, but may not increase them
Once the budget is approved in prin
ciple it is sent to the Committee OF
Appropriation with instructions tt
draft. the appropriation bill in &C
cordance with the budget. This com
m ttee again examines the differen
items of the budget, then frames ant
submits it's appropriation bill. Ono
the appropriation bill is approved b.
the House, it is sent to the Senate
where the Secretary of Financ
again apears to explain the differen