Cutting budget preparation time by 80% through smart automation

By Lcid Crescent D. Fernandez

The budget keeps the ball rolling for any government, big or small. Under Republic Act No. 7160, or the Local Government Code of 1991, local governments – barangays, municipalities, cities, and provinces alike – are empowered to govern independently. This authority, however, comes with responsibility. Local governments must carefully prepare their budgets to ensure resources are allocated to programs and services that truly matter.

The challenge is that budgeting is not freely handed out as a checklist exercise; it is a rigorous process. And for those of us who have seen it up close, we know how time-consuming and exhausting it can be. What seems like a purely technical task often has staff pulling their hair out as deadlines approach.

This is the seventh article in my series of columns on building Smart Cities. In my previous article, I discussed how Smart LGUs handle disaster risk reduction and management through tools that deliver real-time updates and improve emergency response. This time, as it is budget season for our LGUs, I want to turn to another critical pillar of governance: fiscal management – specifically how a Smart City can cut its budget preparation time by as much as 80% through automation.

Traditionally, budget preparation involves multiple steps: planning, preparation, consolidation, formulation, and review. Each step requires inputs from several departments, stacks of supporting documents, and long rounds of coordination. It is not unusual for this cycle to drag on for 90 days or more in many LGUs. But a Smart City can cut this timeline to just 15 – 20 days with the help of automation.

The transformation begins with unified financial data. Instead of each office encoding figures separately, entries from the Treasury, Accounting, Assessor, and Budget Offices automatically feed into a single system. This not only eliminates redundant work but also reduces the chances of human error. On top of that, AI-driven forecasting analyzes historical patterns and compliance data to project revenues and expenditures, improving both accuracy and foresight.

Workflows also become smoother. Automated processes with built-in approval chains reduce the bottlenecks created by manual back-and-forth between offices. Compliance checks are built into the system, instantly flagging errors or inconsistencies. This lowers audit risks and ensures that every step aligns with regulations. Because the system is cloud-based, collaboration is no longer tied to physical documents that could be lost, misplaced, or damaged. Offices can securely work together in real time, regardless of location.

What should excite LGUs is not just the efficiency gained, but the way automation changes how people work. By removing the need for repetitive data entry and manual encoding, staff can spend more of their time on meaningful financial analysis and strategic planning. When budgets are approved earlier, projects are rolled out sooner, and citizens feel the benefits more quickly.

This is budgeting reimagined – not as a bureaucratic hurdle but as a driver of development. With automated systems like The Prominent, LGUs can shift their focus away from administrative burdens and toward initiatives that build stronger communities and fuel long-term growth.

A Smart City doesn’t adopt technology for the sake of appearing modern or following trends. It adopts technology to strengthen governance, enhance efficiency, and deliver better services to its people. That is where the real promise of smart governance lies.