The document outlines the guidelines for the Bottom-Up Budgeting (BuB) process between local and national governments in the Philippines. It defines BuB as an approach to formulating budgets that considers the development needs of poor cities/municipalities as identified in local poverty reduction action plans developed with community participation. 1,233 priority local governments will participate in the BuB process, submitting proposed poverty reduction projects to national agencies for funding consideration and integration into agency budgets. The document details the roles of different stakeholders and the steps for project identification, validation, funding, and implementation.

1. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012
dated December 20, 2012

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. KEY PLAYERS:
DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 1, series of 2012, March 2, 2012

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. 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. 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. 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. 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. 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. 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. 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. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3 series of 2012
dated December 20, 2012