BOTTOM-UP BUDGETING:A Philippine Experiment

DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012

WHAT IS BUB?an approach in preparing the budget

proposal of agencies, taking into consideration the development needs of poor cities/municipalities as identified in their respective local poverty reduction action plans that shall be formulated with strong participation of basic sector organizations and other civil society organizations.

Why Bottom-Up Budgeting?

Having won a resounding electoral mandate on the back of people power, the thrust of President Aquino’s government is to give power back to the people.

President Benigno S. Aquino,III

GOALS of BUB (as part of the Empowerment of the Poor Program)

• MAKE NATIONAL GOVERNMENT MORE RESPONSIVE TO LOCAL NEEDS

• STRENGTHEN DEVOLUTION OF SERVICES

• INCENTIVIZE LOCAL GOVERNANCE REFORMS

• EMPOWER CITIZENS

Guiding Principles and Concepts of the BUB

1. Empower the poor to get themselves out of poverty

2. Poverty reduction (and local development) is a shared responsibility of government and citizens

3. Government can make its anti-poverty plans more responsive and effective by allowing for more citizens’ participation

4. Good governance (defined as transparent, accountable, participatory) significantly contributes to poverty reduction and community development

5. Good Governance can be promoted best through incentives rather than punitive measures for LGUs/NGAs

6. We can increase the demand for GG through effective and sustained citizens’ paxn in key governance processes such as planning and budgeting

Guiding Principles and Concepts of the BUB

Salient Features of the BUB1. Final output to be produced by the local

communities themselves (Local Poverty Reduction Action Plan or the LPRAP)

2. It will be produced by the Local Poverty Action Team per municipality/city (or the LPRAT) composed of equal representation from LGUs and CSOs

3. Budget for LPRAP will come from budgets of participating agencies

COMMUNITY / CIVIL SOCIETY

ORGANIZATIONS

COMMUNITY / CIVIL SOCIETY

ORGANIZATIONS

Conditional Requirements

LOCAL GOVERNMENTS

LOCAL GOVERNMENTS

PARTICIPATORY POVERTY REDUCTION PLANNING

• Local plans must be signed and endorsed by 3 CSO representatives

• LPRATs 50% LGU 50% CSOs• Local governments must also

• attain a Seal of Good Housekeeping

• strengthen their local financial management system

• Technical capacity to implement projects

• No unliquidated cash advance from host agencies

Coverage

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This circular shall cover the following participating agencies:•NGAs: 1. Department of Agrarian Reform (DAR) 2. Department of Agriculture (DA)

3. Department of Education (DepEd) 4. Department of Energy (DOE) 5. Department of Environment and Natural Resources (DENR)

6. Department of Health (DOH) 7. Department of the Interior and Local Government (DILG) 8. Department of Labor and Employment (DOLE) 9. Department of Social Welfare and Development (DSWD)

10. Department of Tourism (DOT) 11. Department of Trade and Industry (DTI)

12. Technical Education and Skills Development Authority (TESDA)

•Government Owned and Controlled Corporations (GOCCs): 13. National Electrification Administration (NEA)

•For Coordination and Oversight

1. Department of Budget and Management (DBM)2. Department of the Interior and Local Government (DILG) 3. Department of Social Welfare and Development (DSWD)4. National Anti-Poverty Commission (NAPC)5. National Economic Development Authority (NEDA)

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NAPC BASIC SECTORS Farmers and landless rural workers

Artisanal fisherfolk Urban poor Indigenous cultural communities/indigenous

peoples Workers in the formal sector and migrant workers Workers in the informal sector Women Youth and students Persons with disabilities Victims of disasters and calamities Senior Citizens Non-government organizations (NGOs) Children Cooperatives

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List of Qualified Projects

National Development PrioritiesProvision of Basic Social Services and Attainment of the MDG, including Poverty ReductionHunger Mitigation and EliminationJob Generation and Inclusive Local Economic DevelopmentClimate Change Adaptation/Mitigation and Disaster Preparedness

Fund Source

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Funding for the implementation of approved BuB Projects shall be incorporated by the participating agencies and DBM into the FY 2014 National Expenditure Program.

PROVISION OF COUNTERPART FUNDS

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Highly urbanized cities 30% of project costAll cities 20% of project cost1st class – 3rd class municipalities 15% of project cost4th class – 6th class municipalities 5% of project cost

Cash counterpart: must be sourced out from LGU funds and included in the LGUs’ 2014 AIP and local budgetNo counterpart in the 2014 local budget thru the Appropriation Ordinance : no release of funding for PPRPs

THE LOCAL POVERTY REDUCTION ACTION TEAM (LPRAT)

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the group to spearhead the formulation and monitoring of the LPRAP

COMPOSITION

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Chairperson: Local Chief Executive (LCE) Co-Chairperson: A CSO representativeMembers:Representatives from Government, to wit:

Sangguniang Panlungsod/Bayan Member who is the Chairperson of the Committee on Appropriation;

All local government department heads such as the Planning Officer, Budget Officer, Agriculture Officer, Social Welfare and Development Officer, and Health Officer;

Representatives of national government agencies (NGAs) such as the DSWD municipal links, PESO manager and the DILG City/Municipal Local Government Operations Officer, the school district supervisor and Agrarian Reform Officer

Composition

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Representatives from Civil Society Organizations (must be residents of the city or municipality), to wit:

a Pantawid Pamilya Parent-Leader;a Leader from DOH organized Community Health

Teams;a Leader of the Parent-Teacher Associations;a Leader of a CSO accredited by LGUs;a Leader of a CSO accredited or recognized by any

NGA;a Leader of a women’s group;a Leader of a basic sector organization;a Leader of a basic sector organization accredited

by NAPC;a Leader of other community or grassroots

organizations; andA representative from the business sector

The LPRAT shall be composed of an equal number of government representatives (including the LCE) and non-government representatives (civil society and business). It should also be composed of at least 40% women.

SELECTION OF CSO REPRESENTATIVES & SIGNATORIES

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The elected CSO representatives shall also elect among themselves the co-chair of the LRPAT and the three representatives who will sign the LPRAP. The three signatories must include:

1.a Pantawid Pamilya parent leader, the selection of whom shall be facilitated by the DSWD municipal link (If the city or municipality has no Pantawid Pamilya beneficiaries, a Parent Teacher Association representative can serve as an alternative);

2.a representative from a basic sector organization or cooperative of any of the following sectors: farmers and landless rural workers, artisanal fisherfolk, formal labor and migrant workers, workers in the informal sector, indigenous peoples and cultural communities, women, persons with disabilities, senior citizens, victims of calamities and disasters, youth and students, children, or urban poor, the selection of which shall be facilitated by the LPRAP facilitator; and

3.a third CSO representative who is a member of the city or municipal local development council.

MENU OF PROGRAMSDSWD MENU OFPROGRAM

A. Sustainable Livelihood Program:-Microenterprise Development Track(Php 10,000.00/pax capital assistance based on the need of the project)- Skills Training - Common Service FacilitiesB. KALAHI-CIDSS :

- Basic social services sub-projects: community water systems, day care centers, barangay health stations, electrification, and tribal housing/shelter (DCC, BHS, - Php 750k-800k)

- Basic access infrastructure: access roads, small bridges/footbridges and access trails

- Community production, economic support and common services facilities: community economic enterprise training, equipment and materials support sub-projects, pre- and post-harvest and small scale irrigation

MENU OF PROGRAMSDSWDB.KALAHI-CIDSS:

- Environmental protection and conservation: drainage, river/flood control, sea wall, soil protection (rip rap), artificial coral reef sanctuary and sanitation facilities; and- Skills training and capability building sub-projects and others like light house/eco-tourism sub-projects

C.Protective Services-Infrastructure Projects (Construction & Repair of DCC, Evacuation Center, Crisis Center)- Alternative program for older persons (feeding, CapBuild)- Capacity Building for the basic sectors- Supervised Neighborhood Play (SNP) – feeding program

PROJECT IDENTIFICATION

Project Identification: NEGATIVE LIST Projects below P500,000 Expansion of Pantawid Pamilya, Social Pension for

Indigents Senior Citizens, PhilHEALTH coverage, vaccination programs

Housing Projects Construction of school buildings, classrooms and

rural health units Farm to Market Roads Law enforcement, fire protection and jail

management related projects Construction of city hall, training centers and other

multi-purpose buildings Purchase of motor vehicles, except those used for

rescue in times of disaster International Training, scholarships