Conoce las 4 fases para formular el Presupuesto Público

Introduction

This tutorial outlines the four phases of formulating a public budget, as presented by the Ministry of Economy and Finance of Peru. Understanding these phases is crucial for effective financial planning and resource allocation within government institutions and agencies.

Step 1: Preparation of the Budget

• Define Objectives: Establish clear financial goals aligned with public policy and community needs.
• Collect Data: Gather relevant economic and financial data to inform budgetary decisions.
• Stakeholder Engagement: Involve key stakeholders, including government officials and community representatives, to ensure all perspectives are considered.

Step 2: Formulation of the Budget

• Draft the Budget:
  • Create detailed budget proposals based on the objectives set in the preparation phase.
  • Prioritize projects and initiatives based on their alignment with strategic goals.
• Cost Estimation: Calculate the expected costs for each project, ensuring accuracy to avoid budget overruns.

Step 3: Approval of the Budget

• Review Process: Submit the budget draft for review by relevant authorities or committees.
• Public Consultation: Engage the public for feedback on the proposed budget, enhancing transparency and accountability.
• Final Approval: Present the budget to the legislative body for approval, making necessary adjustments based on feedback received.

Step 4: Execution and Monitoring of the Budget

• Implementation: Execute the budget according to the approved plan, ensuring that funds are allocated as intended.
• Monitoring and Evaluation:
  • Regularly track expenditures and revenues to ensure compliance with the budget.
  • Adjust the budget as necessary in response to changing economic conditions or unforeseen events.

Conclusion

Understanding the four phases of public budget formulation is essential for effective governance. By following these steps—preparation, formulation, approval, and execution—government entities can ensure responsible financial management and better serve their communities. Moving forward, consider how these phases can be applied to your own budgetary processes or how they might influence future financial planning efforts.