Local Road Management Manual 96 Figure 3.18 The Local Budgeting Process a. Budget Preparation. The Local Finance Committee analyzes the revenues and expenditures of the LGU. Revenue estimates are formulated and expenditure ceilings determined. The budget formulation process also provides the framework against which the implementation of PPAs delineated in the budget will be measured. The budget document will be the benchmark for which the performance of the departments and offices are measured. Subsequently, the budget office consolidates the budget proposals of the different departments and offices and allocates the amount of funding available for new projects/ investments in accordance with priorities set out in the local development investment program and the annual investment program of the LGU; b. Budget Legislation. The local budget is authorized by the local Sanggunian starting from the time the local chief executive presents the proposed executive budget to the Sanggunian for its review. The Committee on Appropriation and Sanggunian then review the draft appropriation ordinance for (a) its consistency with the LGU goals and objectives as expressed in its local development plan; and (b) its conformity with the budgetary provisions of the Local Government Code. On or before the end of the current budget year and after securing the approval from a majority of its members, the local Sanggunian enacts the annual budget for the LGU by passing an appropriation ordinance. The appropriation ordinance is then presented to and signed by the local chief executive;