1. GRASSROOTS PARTICIPATORY
BUDGETING PROCESS
(Bottom-up Budgeting)
Joint Memorandum Circular No. 4

2. OBJECTIVES
• Budget Reform
– Making the national budget more responsive to
local needs
Inclusive growth and poverty
reduction, and promoting good
governance at the local level
• Local Governance Reform
– Providing incentives for local good governance
– Strengthening the devolution of basic services
delivery
• Democratic and Empowerment Project
– Creating a conducive environment for people’s
participation
– Generating demand for good governance at the
local level.

3. OBJECTIVES:
Section 6.2.8. All projects must contribute to:
•Provision of Basic Social Services and Attainment of
the Millennium Development Goals, including poverty
reduction;
•Hunger Mitigation and Elimination;
•Job Generation and Inclusive Local Economic
Development
•Climate Change Adaptation/Mitigation and Disaster
Preparedness

4. OBJECTIVES
No. Cities & Municipalities
609
1,233
1,634
1,634
???
2013
2014
2015
2016
2017

5. COVERAGE
Participating Agencies –(12 NGAs) DAR, DA,
DepEd, DOE, DENR, DOH, DILG, DOLE,
DSWD, DTI, DOT and TESDA and (1) GOCC
NEA through which funding for GPB programs
will be allocated.
Oversight Agencies –
DILG, DBM, DSWD, NAPC and NEDA

6. BUDGET CAP
Allocation per City/Municipality ( Annex A)
-Formula:
No. of poor X P700 (Rounded to nearest million)
- Minimum of P15million, Maximum of P50,000

7. HARMONIZATION WITH LOCAL PLANNING PROCESSES
Which Mode Grassroots Budgeting (GPB)
Two Modes of SK LGUs belong?
REGULAR PROCESS:
- Regular
1)General Santos City
-
2) Alabel
LPRAT as a committee of the LDC
3) Glan
-Enhanced Process
- To be undertaken in
ENHANCED PROCESS: 271 municipalities that have graduated
from or
1)Kiamba are currently implementing KALAHI-CIDDS
2) Maasim
3) Maitum
4) Malapatan
5) Malungon
- Integrate barangay level planning in the city/municipal level
planning.
- LPRAT as a technical working group of “Enhanced LDC”;
decisions to be made in the “Enhanced LDC”

8. LPRAT
Under
Note:
Regular Process:
- Mayor (Chair), their immediate relatives
Local officials, Sangguniang Appropriations (spouse,
parent, siblings, child) and LGU employees are
Committee Chair, all local department heads, and
ineligible to be elected as CSO representatives
representatives of NGAs at the city/municipal level
(50% of LPRAT members)
Composition shall be equal number of government
(including
the
LCE)
and
non-government
representatives. of CSOs elected during the CSO
-Representatives
Assembly + 1 business group representative (50% of
All CSO representatives should be residents of the
LPRAT members). If more than 20% IPs, one elected
city/municipality.
representative must come from the IP Sector
The LPRAT should also be composed of at least 40%
women.

9. Note:
LPRAT
(LDC-TWG) Composition
LPRAT under Enhanced Process serves as the
Technical Working Group (TWG) of Enhanced Local
Under Enhanced GPB:
Development Council (LDC)
-Enhanced LDC Composition:
10 Representatives from government
Chair: Mayor
Vice-Chair: A CSO Representative Vice-Chairpersons
- 5 Barangay Development Council
Members from Government:
selected through KALAHI-CIDSS
-All Punong Barangays
-Chairperson, Committee on Appropriations
--District representatives in the Enhanced LDC
5 CSO Representative
Members from CSO:
-All Vice-Chairs of BDC
-At least 5 CSO representatives elected during
assembly

10. REGULAR GPB Process
(Steps)

11. STEPS
1) Civil Society general assemblies
Note:
- LPRAP Signatories must include: and grassroots
Orientation on local governance
budgeting
1)A Pantawid Pamilya Parent Leader (DSWD
- Municipal Link shall representatives , 3 CSOor a PTA
Election of LPRAT facilitate selection) signatories
representative if no Pantawid Pamilya Parent Leader
(including LPRAT Co-Chair)
- Report on status of 2013 and Approved list of 2014
2)A Basic Sector Organization or Cooperative
GPB (BUB)
Representativeprojects
- Poverty Situation Analysis
3)A CSO representative who is a member of LDC

12. STEPS
2) Local Poverty Reduction Action Planning
-Constitute the LPRAT
-Technical assistance by RPRAT and GPB PMO
-LPDC with LFC and other heads shall present poverty situation
-Identify specific poverty reduction strategies and projects to be
included in the LPRAP:
80% of Budget Cap within Menu (subject to RPRAT review and
validation)
20% outside of the Menu (subject to NPRAT review and
validation)
-- Prioritize poverty reduction projects
-- Multi-year Planning approach shall be undertaken

13. STEPS
Note:
Both
PRINTED
(Hard)
and
ELECTRONIC (Soft) copies should be
submitted to DILG RO. The list of
priority projects must be submitted in
both PDF and word/excel format thru
e-mail.

14. STEPS
4: Consolidation of the List of Priority Poverty Reduction Projects
by DILG RO and submission to NAPC and distribution to
RPRAT members
5: Validation, review and revision of Priority Poverty Reduction
Projects by R/NPRAT
6: Submission of revised list of priority projects
The LPRAT shall submit its revised list of projects signed by 3
CSO representatives together with project briefs for each project
and SP/B resolution to the DILG RO .

15. STEPS
7: Integration of the LGU projects in the
budgets of participating agencies.
8: Provision of LGU Counterpart
9: Project Implementation

16. COUNTERPART REQUIREMENTS
• For Municipalities: cash counterpart will be a % of
the local development fund
Proportion of GPB plus
KALAHI-CIDSS to LDF
Up to 100% of LDF
Required Cash
Counterpart
10% of LDF
Over 100% up to 150%
15% of LDF
Over 150%
20% of LDF
• For Cities: Cash counterpart will be 40% of
the Budget Cap

17. COUNTERPART REQUIREMENTS
• Non-KALAHI CIDSS LGUs, counterpart be solely based on the Budget Cap
•Additional non-cash counterpart for KALAHI-CIDSS LGUs shall be required
from the LGUs.
•LGU Counterpart Funds shall be added to the funding available for GPB.
•Counterpart funding need not be allocated on a per project basis.
•Counterpart may be used to fund projects that are 100% funded by the LGU.
•National programs that require a counterpart, as indicated in the Menu of Programs, shall
Provided that funds for monitoring and evaluation of
GPB Projects and the conduct of quarterly LPRAT or
Enhanced LDC meetings shall be included

18. COUNTERPART REQUIREMENTS
• The counterpart to be provided must be sourced from LGU
funds. This shall be formalized and included by the LGU in its
2015 AIP and annual budget.
•The LGU shall submit a copy of its 2015 AIP and annual
budget to the DILG Regional Office to provide evidence that the
required counterpart funding has been included in the LGU
budget.
Failure to provide counterpart funds in the
Appropriation Ordinance authorizing the local
Annual Budget for FY 2015 will result in the nonrelease of the national government funding for the
city or municipality’s GPB projects.

19. PROJECT IDENTIFICATION – Negative List
- Below P500,000 (they can be proposed as LGU projects to be funded
through the LGU counterpart), except for Gulayan sa Paaralan projects
under DepEd;
- Expansion of Pantawid Pamilya & Social Pension for Indigent Senior
Citizens;
- Housing Projects;
- Materials Recovery Facility and Landfills;
- Vaccination program and National Health Insurance Program;
- Construction of new school buildings and classrooms, deployment of
additional teachers and construction of Rural Health Units;
- Farm-to-market roads;
- Projects related to law enforcement, fire protection, and jail management;
- Construction of city/municipal hall, training centers, and other multipurpose buildings, and procurement of furniture and fixtures;
- Purchase of motor vehicles, except to be used for rescue in times of
disaster; and
 International trainings/scholarships

20. PROJECT IMPLEMENTATION
Funding for GPB Projects in a city or municipal government shall only be released if the LGU achieves the
following:
•Attainment of the Seal of Good Housekeeping (at least Bronze) under the CY 2013 or CY 2014 assessment.
• Submission of the PFM Improvement Plan to DBM and accomplishment of the 2014 targets or undergo
the DBM PFM assessment and develop an Improvement Plan, whichever is applicable.
• Required counterpart has been provided in the LGU Annual Budget
• Submission of proper financial and physical accomplishment reports to the concerned NGAs
•Compliance with the intent of Grassroots Budgeting for meaningful participation of CSOs and communities
in Grassroots Budgeting.

21. PROJECT IMPLEMENTATION
• Funding under agencies where LGUs have unliquidated cash
advances beyond the reglamentary period will also not be released
and the identified GPB projects for FY 2015 will not be
implemented.
• LGUs that poorly implement their GPB projects in 2014, as
determined by the RPRAT based on guidelines that will be
subsequently issued, will not be provided funding for their priority
projects under the 2015 GPB Program.

22. ENHANCED BUB PROCESS
(For Municipalities that have
Graduated from or are currently
Implementation of KALAHI-CIDSS)

23. VARIANCES IN THE PROCESS

24. VARIANCES IN THE PROCESS

25. CALENDAR
Activity
Responsible Party
For KALAHI-CIDSS areas only: DSWD Area
Selection of BDC Vice-Chairs and Coordination Teams for
Barangay-level poverty situational KALAHI-CIDSS
analysis
1
Orientation of the RPRATS
2
Conduct
of
Assemblies
Civil
DILG PMO
Society
Period
Prior to
Sept 2013
Sep
Oct
Nov 22
3
Orientation
LPRATs
workshops
for RPRATS
4
Conduct of LPRAP Workshops / LGUs
Enhanced LDC and LPRAT
meetings
Nov 1 – 15
Jan 16
Nov 16 Dec 15
Jan 17 –
Feb 7

26. CALENDAR
Activity
5
6
7
Submission of LPRAPs and list of
priority projects / LDIPs to the
DILG RO
Responsible Party
LGUs
Period
Dec 16
Feb 14
Forward copies of all LPRAPs with RPRAT
consolidated list of projects / LDIPs
to NAPC and participating regional
offices; NAPC to forward to all
participating Agency Central
Offices
Dec 23
Convening of RPRAT to validate
LGU proposals; clarify proposals
with LGUs if necessary
Jan 20 – 31
RPRAT
Dec 30 out
to NGAs
Feb 18-19

27. CALENDAR
Activity
Responsible Party
Period
8
Convening of NPRAT to review
outside of the menu programs
DILG PMO and
participating agencies
Jan 20 – 31
9
Submission of accepted and
rejected outside of the menu
projects to the RPRATs together
with revised Menu of Programs
DILG PMO
Feb 3
10 Inform LPRATs of rejected projects RPRAT
for replacement
Feb 6
11 Validation workshop to replace
projects with LPRATs
Feb 10 - 21
RPRATs
12 Submission of consolidated revised LGUs
LPRAPs/ LDIP to RPRATs
together with Sangunian Resolution
Feb 28
Feb 26

28. CALENDAR
Activity
Responsible Party
Period
13 Submission of consolidated list of
validated projects to NAPC
RPRATs
Mar 7
14 Endorsement of proposed BuB
Projects to participating agencies
NAPC
Mar 14
15 Integration of BuB Proposals with
NGA budget proposals in the NEP
DBM and Agency Central
Offices
Mar 15 April 14
16 Submission of agency proposed
budget to DBM
Participating agencies
April 15