Bottom up Budgeting

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Bottom up Budgeting

  1. 1. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  2. 2. DEFINITION: An approach to formulating the budget proposal of national gov’t 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 sectors and civil society organizations. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  3. 3. OBJECTIVES: To make the planning and budgeting processes of both local and national governments more participatory; To strengthen the convergence of the delivery of national services in the community; Provide a balance in the identification of priorities; DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  4. 4. FOCUS LGUs: 1,233 LGUs – “Poorest of the Poor” DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  5. 5. FOCUS LGUs BY REGION: NO. OF LGUS MAGNITUDE OF POOR CAR 54 301,487 NCR 10 I NO. OF LGUS MAGNITUDE OF POOR VII 123 2,226,788 305,864 VIII 115 1,447,679 68 785,199 IX 69 1,313,573 II 49 374,187 X 87 1,691,593 III 52 516,074 XI 48 1,254,229 IV-A 52 510,784 XII 49 1,445,109 IV-B 62 841,001 XIII 64 1,027,454 V 109 2,120,466 ARMM 107 1,349,944 VI 115 1,771,494 TOTAL 1,233 19,282,925 REGION REGION DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  6. 6. Participating Agencies (12): • • • • • • • • • • • • Department of Agrarian Reform (DAR) Department of Agriculture (DA) Department of Education (Deped Department of Energy (DOE) Department of Environment and Natural Resources (DENR) Department of Health (DOH) Department of Interior and Local Government (DILG) Department of Labor and Employment (DOLE) Department of Social Welfare and Development (DSWD) Department of Tourism (DOT) Department of Trade and Industry (DTI) National Electrification Administration (NEA) DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  7. 7. PROCESS: 1. Preparation for Poverty Reduction Planning and Budgeting Includes the following activities organized by the NAPC and DILG in coordination with RPRATs: Civil Society City or Municipal Assemblies Selection of the LPRAT co-chairperson and CSO signatories of the LPRAP Updating and validation of relevant economic and social data DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  8. 8. PROCESS: 2. Conduct of LPRAP Workshop LCE to constitute / reconstitute the LPRAT LPRAT shall conduct workshop/s to formulate the LPRAP o Includes review and validation of latest relevant data and relevant sections of CDP, CLUP, ELA and AIP o Should be conducted with the active participation of CSOs, basic sector representatives and other non-government stakeholders DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  9. 9. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o Formulated with the technical assistance from the RPRAT o Should incorporate specific poverty reduction strategies to be undertaken by the LGU and other stakeholders, including NGAs o Should also incorporate good governance, gender mainstreaming and climate change mitigation/ adaptation strategies DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  10. 10. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o Should reflect priority poverty reduction projects that will submitted to the NG for funding (using format under Annex B-1) o Priority projects are identified through a vote among members of the LPRAT DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  11. 11. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o All projects submitted to the NG must contribute to the following: 1. Provision of Basic Social Services and Attainment of the Millennium Development Goals, including poverty reduction; 2. Hunger Mitigation and Elimination; 3. Job Generation and Inclusive Local Economic Development; and 4. Climate Change Preparedness Adaptation / Mitigation and Disaster DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  12. 12. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o The following projects may not be proposed as BuB Projects: 1. 2. 3. 4. 5. 6. Expansion of Pantawid Pamilya Program beneficiaries Housing Projects Major Flood Control Projects Vaccination Program National Health Insurance Program Projects related to Law Enforcement, Fire Protection and Jail Management DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  13. 13. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o The following projects may not be proposed as BuB Projects: 7. Construction of City/Municipal Halls and other Multi-purpose Buildings 8. Construction of new school buildings and classrooms and teacher deployment DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  14. 14. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o The following projects may not be proposed as BuB Projects: 9. Procurement of Furniture and Fixtures 10. Purchase of Motor Vehicles 11. International Trainings / Scholarships DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  15. 15. PROCESS: 2. Conduct of LPRAP Workshop Considerations in the Preparation of the LPRAP: o LPRAT must allocate 80% of their budget cap for projects included in the Menu (Annex C) o Remaining 20% may be allocated for new programs proposed by the LPRAT consistent with the NG priorities and the projects not allowed as BuB projects DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  16. 16. PROCESS: 3. Endorsement of CSOs List of priority projects must be approved by the three CSO members of the LPRAT DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  17. 17. PROCESS: 4. Adoption of the priority projects by the Sanggunian List of priority poverty reduction projects must be adopted by the Local Sanggunian before submitted to NG. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  18. 18. PROCESS: 5. Submission of the List of Priority Poverty Reduction Projects List of priority poverty reduction projects duly endorsed by the CSOs and approved by the Sanggunian shall be submitted to the RPRAT, through the DILG RO By February 15, 2013 DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  19. 19. PROCESS: 5. Submission of the List of Priority Poverty Reduction Projects Submission should include: o Cover letter signed by the LCE o List of Priority Projects using format (Annex B-1) o Project Brief using template in Annex B-2 o Copy of Sanggunian Resolution approving the List of Priority Poverty Reduction Projects DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  20. 20. PROCESS: 6. Consolidation of the List of Priority Poverty Reduction Projects by Region List of priority poverty reduction projects will be consolidated by the RPRAT Provide consolidated list to RPRAT members and NAPC DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  21. 21. PROCESS: 7. Validation and Review of Priority Poverty Reduction Projects by the RPRAT RPRAT: o Chairperson: DILG Regional Director o Vice-Chairperson: DBM Regional Director o Members: 1. Regional Directors of all other Participating Agencies 2. Representatives from DOE and NEA 3. Regional Director of NEDA 4. A CSO representative per province as identified by NAPC DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  22. 22. PROCESS: 7. Validation and Review of Priority Poverty Reduction Projects by the RPRAT The RPRAT shall: o Meet with the duly authorized LPRAT representative to clarify, modify or replace the rejected project/s o Ensure that previously rejected projects are finally settled/ replaced before submission to the NAPC and the RDC o Submit, through the DILG Regional Office, revised list of validated BuB projects to NAPC and the RDC DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  23. 23. PROCESS: 8. Integration of the LGU projects in the budgets of participating agencies • ACOs shall review all BuB projects submitted to them for funding • ACO shall then incorporate the projects in their “within ceiling” budget proposal which will be submitted to DBM • All agencies shall ensure that BuB projects are not duplicated in their regular programs, PAMANA program or in the ARMM Stimulus Fund DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  24. 24. PROCESS: 9. Provision of Counterpart Funds LGU CLASS REQUIRED COUNTERPART Highly Urbanized Cities 30% of project cost All Other Cities 20% of project cost 1st to 3rd Class Municipalities 15% of project cost 4th to 6th Class Municipalities 5% of project cost DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  25. 25. PROCESS: 9. Provision of Counterpart Funds Counterpart must be sourced from LGU Funds. Counterpart must be included in the 2014 AIP and Annual Budget “No Counterpart, No Release of NG Funds.” DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  26. 26. PROCESS: 10. Project Implementation Only the LGUs that meet the following requirements can implement their BuB projects in 2014: o Recipient of the DILG’s Seal of Good Housekeeping (SGH) based on the 2013 Assessment o Substantial progress in implementing its PFM Improvement Plan as determined by DBM DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  27. 27. PROCESS: 10. Project Implementation Only the LGUs that meet the following requirements can implement their BuB projects in 2014: o Technical capability to implement the project, as determined by the concerned participating agency (per project basis) o No unliquidated cash advances from participating agencies based on existing auditing rules and regulations (per agency basis) DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  28. 28. PROCESS: 10. Project Implementation If LGU is ineligible to implement a BuB Project, the project will be implemented by the concerned NGA LGUs that poorly implement their BuB projects in 2013 will not be provided funding for their priority projects under the 2014 BuB Program DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  29. 29. FUND SOURCE: Funding for the implementation of BuB projects shall be incorporated by the participating agencies and DBM into the FY 2014 National Expenditure Program DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  30. 30. KEY PLAYERS: DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 1, series of 2012, March 2, 2012
  31. 31. ROLES & RESPONSIBILITIES: Local Chief Executive (LCE): o Organize and convene the LPRAT o Ensure availability of relevant data o Ensure conduct of LPRAT workshops and meetings o Ensure that only projects prioritized by the LPRAT are submitted to the RPRAT o Ensure conduct of quarterly LPRAT meetings o Mobilize LGU to ensure compliance with SGH and implementation of PFM Improvement Plan (PFMIP) DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  32. 32. ROLES & RESPONSIBILITIES: Local Poverty Reduction Action Team (LPRAT): o Organize and facilitate the conduct of LPRAP workshops o Agree on the a list of priority poverty reduction projects for 2014 based on the LPRAP o Conduct quarterly meetings to monitor status of the approval and integration of priority poverty reduction projects into the budgets of participating agencies DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  33. 33. ROLES & RESPONSIBILITIES: Local Sanggunian: o Review and approve List of Priority Poverty Reduction Projects to be submitted to NAPC o Pass the pertinent Sanggunian Resolution DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  34. 34. ROLES & RESPONSIBILITIES: CSO Representatives: o Actively participate in the formulation of the LPRAP and identification of priority poverty reduction projects o Endorse the LPRAP and list of priority poverty reduction projects for approval of the Local Sanggunian o Monitor implementation of the projects through LPRAP DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  35. 35. ROLES & RESPONSIBILITIES: Regional Poverty Reduction Action Team (RPRAT): o Assign a permanent and alternate representative o Conduct orientation workshops for the LPRAT of focus LGUs o Engage DSWD Municipal Links and Pantawid Pamilya parent leaders and provide municipal-level NHTS data o Provide data from participating agencies and technical assistance in LPRAP preparation o Monitor activities of LGUs and progress in submission of proposals and LPRAPs DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  36. 36. ROLES & RESPONSIBILITIES: Regional Poverty Reduction Action Team (RPRAT): o Ensure compliance with budget cap and consolidate, review and validate proposed LPRAPs o Inform LCEs and RDCs on the final LPRAP projects o Monitor and evaluate performance of the LPRAT and implementation of BuB projects DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  37. 37. ROLES & RESPONSIBILITIES: National Anti-Poverty Commission: o Lead in the conduct of regional orientation for RPRATs o Ensure visibility and access to information on BuB projects through the empowerment portal o Set-up web-based software for automation of planning and consolidation of LPRAP projects, and web-based monitoring system o Facilitate overall monitoring and evaluation of the BuB initiative DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  38. 38. ROLES & RESPONSIBILITIES: Agency Central Offices (ACOs): o Incorporate list of priority projects submitted by NAPC in their 2014 within the ceiling budget o Submit to DBM the Department’s budget proposal for FY 2014 (including proposals from BuB LGUs) by April 8, 2013 o Give feedback to the RDC and LGUs on the status of proposals DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012
  39. 39. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012 dated December 20, 2012

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