Local planning and budgeting linkage_version 2.0

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Local planning and budgeting linkage_version 2.0

  1. 1.  Legal Basis of Plan-Budget Linkage  Harmonizing Plans with the Budget oDevelopment Plan for Provinces and Highly-Urbanized Cities oDevelopment Plan for Cities and Municipalities oLocal Development Investment Program o Annual Investment Program • Key Players • Flow Chart  Policy Guides on a Plan-Budget Linkage  Synchronizing the Plan-Budget Calendar
  2. 2. LEGAL BASIS There are four basic principles provided in the Local Code of 1991: 1. Local budget plans and goals shall, as far as practicable, be harmonized with national development plans, goals and strategies in order to optimize the utilization of resources and to avoid duplication in the use of fiscal and physical resources (Section 305 h); 2. Local budgets shall operationalize approved local development plans (Section 305 i); 3. Local governments shall formulate sound financial plans. The local budgets shall be based on functions, projects and activities in terms of expected results (Section 305 g); 4. Budgets of LGUs shall include a brief description of the functions, projects and activities for the ensuing fiscal year; expected results for each function, project and activity; and the nature of work to be performed, including the objects of expenditure for each function, project and activity (Section 317b 3).
  3. 3. HARMONIZING PLANS WITH THE BUDGET  DBM-NEDA-DILG-DOF JMC No. 1, Series of 2007 dated 08 March 2007  common direction in the implementation and achievement of local endeavors  strengthen the interface and complementation between LGUs, national government agencies (NGAs), among all LGUs in all levels (vertically and horizontally), and funding institutions and donor agencies  achieving efficiency and effectiveness in the allocation of resources
  4. 4. The Plan-Budget Link Model PLAN PDPFP/CDP LDIP DEVELOPMENT PLANNING (6-15 Years) (3-6 Years) INVESTMENT PROGRAMMING LINK BUDGET AIP ANNUAL BUDGET AND SUPPLEMENTAL BUDGET (1 Year) BUDGETING ( 1 Year)
  5. 5. Development Plan for Provinces and Highly-Urbanized Cities  Provincial Development Framework Plan (PDPFP) and Physical  a six-year plan that merges the traditionally separate provincial physical framework plan and provincial development plan  contains the long-term vision of the
  6. 6. Development Plan for Cities and Municipalities  Comprehensive Development Plan (CDP)  multi-sectoral plan formulated at the city/municipal level embodying the vision, sectoral goals, objectives development strategies, and policies  contains corresponding PPAs which serve as primary inputs to investment programming and subsequent budgeting and implementation of projects
  7. 7. Local Development Investment Program  a programming document  shall be prepare when the PDPFP for provinces and CDP for cities and municipalities already approved  Investment programming covers 3 to 6 years six-year rolling program at the provincial level which coincides with the time frame
  8. 8. Annual Investment Program .  another document to be submitted by the LDC to the LFC as mandated under Article 410 of the IRR of R.A. No. 7160  prepared and approved during the fiscal year before budget preparation (basis for the preparation of Annual and Supplemental Budgets)  refers to the annual slice of the LDIP which constitutes the total resource requirements for all PPAs • annual capital expenditure • regular operating requirements of the
  9. 9. PLAN BUDGET ANNUAL INVESTMENT PROGRAM
  10. 10. Key Players Local Development Council LCE LPDC Sanggunian Budget Officer NGOs, Civil Society Groups and Other Stakeholders
  11. 11. Flow Chart Aligns Development Plan/ELA (PDPFP/CDP) with Current Development Issues LCE Presents AIP to LDC for Deliberation Updates AIP to consider new and unimplemented PPAs Prepares Draft AIP and present to LCE for Review Determines Annual Resource Requirements of Priority Development Projects from LDIP Funded from 20% of IRA, General Fund and Other Sources Funds Determines Resource Requirements of PPAs for Basic Services Delivery and Administrative/ Legislative Services LDC Deliberates on/Endorses AIP to Local Sanggunian Approves AIP for the Budget Year
  12. 12. Policy Guides on a Plan-Budget Linkage Development planning  shall not be limited to projects and activities to be funded by the 20% Development Fund  in general, medium-term and for provinces, covers a six-year period rolling plan Annual/ supplemental budgets shall be dedicated to sustainable human development Local elective officials  shall develop the capacity to mobilize resources and sustainability  to develop the capabilities of their people in the long-term ensure program Local budgets  shall be policy-driven and performance - based. Policy formulation shall include: •Explicit policy directions to eliminate poverty and unemployment; •Policies on how the budget shall be financed in the medium-term and how it is shall be allocated among priority PPAs in the short-term
  13. 13. Synchronizing the Plan-Budget Calendar Jan 1 - 15 LCE issues Executive Order directing the updating of the LDIP & the AIP Jan 16 - 31 Review of all objectives and policies Feb. 1 - 15 Feb. 16 - 28 • Objective setting / Strategy formulation • Policy revision/ formulation • Prioritization of PPAs • Consolidation of revised objectives, strategies & prioritized PPAs • Input review results in AIP forms • Multi-stakeholder consultation on draft AIP
  14. 14. March 1-15 March 16-30 April 1- 30 • Match investment requirements with available resources. • Revise draft AIP if resources are inadequate; formulate needed policies • Finalize AIP for endorsement to Sanggunian • Sanggunian deliberates LFC elevates to higher LGU/ NGRO AIP – identified projects that cannot be financed by the concerned lower LGU. Higher LDC deliberates on projects proposed by lower LGU for funding.
  15. 15. May 1- June 15 June 16-30 LFC prepares profiles of PPAs to be funded from the General Fund of the LGU • • • LCE issues “Budget Call” based on AIP (done after the initial IRA share is released by DBM) LFC finalizes spending ceiling by sector/ office LFC conducts workshop / forum on the Budget Call July 1-Aug. 15 Department Heads prepare & submit budget proposals Aug. 16–Sept. 15 LFC conducts technical budget hearings on proposals submitted by Department Heads
  16. 16. Sept. 16 - 30 Oct. 1 - 15 LFC consolidates budget proposals into a Local Expenditure Program (LEP) and prepares the Budget of Expenditure and Sources of Financing (BESF) LCE prepares Budget message & submits the same to the Sanggunian with the Executive Budget consisting of the LEP & BESF.
  17. 17. THE PLAN-BUDGET CYCLE DEVELOPMENT PLANNING (6-15 years) INVESTMENT PROGRAMMING (3-5 years) BUDGET ACCOUNTABILITY BUDGET YEAR CURRENT YEAR (Jan.- June) (Jan.- Dec.) AIP (1 year) BUDGET EXECUTION CURRENT YEAR (July- Dec.) BUDGET REVIEW BUDGET PREPARATION
  18. 18. THANK YOU

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