The Budgeting Phase of the PPBE Process includes formulation, justification, execution, and control of an organization’s or program’s budget. The primary purpose of the Budgeting phase is to scrutinize the first one or two years of a program’s budget to ensure efficient use of resources and to produce a DoD budget request that can be effectively defended before Congress. The budget is a comprehensive financial plan that encompassing the totality of federal receipts and outlays (expenditures).

The Budgeting Phase is the process for convincing OSD and Congress to provide the necessary resources and then balancing the checkbook to ensure the resources are spent in accordance with the law

The budgeting phase of PPBE occurs concurrently with the programming phase; each DoD Component submits its proposed budget estimate simultaneously with its Program Objective Memorandum (POM). The budget converts the programmatic view into the format of the congressional appropriation structure, along with associated budget justification documents. The budget projects resource only two years into the future, but with considerably more financial details than the POM.

Upon submission, each budget estimate is reviewed by analysts from the office of the Under Secretary of Defense (Comptroller) and the Office of Management and Budget (OMB). Their review ensures that programs are funded in accordance with current financial policies, and are properly and reasonably priced. The review also ensures that the budget documentation is adequate to justify the programs presented to Congress.

Typically, the analysts provide the DoD Components with written questions in advance of formal hearings where the analysts review and discuss the budget details. After the hearings, each analyst prepares a decision document (known as a Resource Management Decision (RMD) for the programs and/or appropriations under his or her area of responsibility.

The RMD proposes financial adjustments to address any issues or problems identified during the associated budget hearing. The RMDs are staffed for comment and forwarded to the Deputy Secretary of Defense for decisions. These decisions are then reflected in an updated budget submission provided to the OMB. After that, the overall DoD budget is provided as part of the President’s Budget Request to Congress. [1]

See Budgeting Process Overview for more information.

Budget Preparation Schedule

• February: Future Year Defense Program (FYDP) Updated
• April: DoD Send Defense Planning Guidance (DPG) to Services
• 30 July: Services submit Program Objective Memorandum (POM) and Budget Estimate Submission (BES) to OSD, CAPE and OMB for Review (FYDP Updated)
• October – December: Joint OMB-OSD review leading to Resource Management Decision (RMD)
• December: DoD Budget Request sent to OMB
• 1st Monday of February: Presidents Budget due to Congress

AcqTips:

• See Financial Management section
• See Budgeting Process

AcqLinks and References:

• [1] Defense Acquisition Guidebook (DAG) – Chapter 1
• DoD Directive 7045.14 Program Planning Budget & Execution (PPBE) Process
• DoD Army PPBE Executive Overview
• Procedures and Schedule for FY 10-15 Integrated Program and Budget Review
• DoD 7000.14-R Financial Management Regulation
• Presentation: Navy Budget PPBE System

Updated: 7/26/2021

Rank: G1