FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
• 
S.B. No. 
212', 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
• I' 'J' ' ' ' 
.J 
Article XI, Section 1 of the Constitution provides that public officers and 
employees must at all times be accountable to the people, serve them with utmost 
responsibility, integrity, loyalty and efficiency, act with patriotism and justice, and 
lead modest lives. 
Corruption lays to waste the resources that ought to be applied to fighting 
poverty. Waste and inefficiency in government programs undermine the confidence 
of the people in government and reduce the government's ability to adequately 
address vital public needs. 
This bill seeks to institutionalize a system of performance planning and 
reporting that will strengthen the accountability of government managers and 
motivate them to improve program efficiency and effectiveness through the 
articulation of program goals and the generation of information on program 
performance. 
With 
performance 
planning 
and 
reporting, 
congressional 
policymaking, spending decisions and program oversight will be better informed 
and focused on program performance and results. 
It is further aimed that a policy of efficient public administration be 
developed in an environment where public officials are equipped with information 
that will allow them to set speCific, measurable targets in their field of service. 
In view of the foregoing, the passage of this bill is earnestly sought. 
~~ 
LOR-ENLEGARDA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
, 2127 
S. B. No. _=-="-'-'---'--
Introduced by Senator Loren Legarda 
AN ACT 
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~-..... -, .. " .. 
TO INSTITUTIONALIZE A SYSTEM OF PERFORMANCE PLANNING 
AND REPORTING IN NATIONAL GOVERNMENT AGENCIES, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of the Representatives of the Philippines in 
Congress nssembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Government 
2 
Performance Act of 2010," 
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4 
SEC. 2. Declaration of Policy and Objectives. - It is hereby declared the 
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policy of the State to formulate and implement a Government Performance System 
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with the following objectives: 
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(a) To initiate program performance reform with a series of pilot projects in 
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setting program goals, measuring program performance against those goals, 
9 
and reporting publicly on their progress; 
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(b) To improve the effectiveness of national programs by measuring results, 
11 
service quality, and public satisfaction; 
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(c) To help government managers improve service delivery, by requiring that 
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they plan for meeting program objectives and providing them with 
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information about program results and service quality; 
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(d) To improve congressional decision-making by providing more objective 
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information on achieving statutory objectives, and on the relative 
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effectiveness and efficiency of government programs and spending; 
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(e) To improve internal management of the National Government; and 
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(f) To improve the confidencl' of the people in the capability of the government, 
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by systematically holding government agencies accountable for achieving 
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program results. 
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SEC. 3. Definition of Terms. - For purposes of this Act: 
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(a) "Agency" refers to any of the various units of the Government, including a 
7 
deparhnent, bureau, office, instrumentality, or government-owned or 
8 
controlled corporations, or a local government or a distinct unit therein, as 
9 
defined in Section 2 of Executive Order No. 292 or the Revised 
10 
Administrative Code of 1991; 
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(b) "Outcome measure" refers to an assessment of the results of a program 
12 
activity compared to its intended purpose; 
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(c) "Output measure" refers to the tabulation, calculation, or recording of a 
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program activity, whether expressed in a quantitative or qualitative manner; 
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(d) "Performance goal" refers to a target level of performance expressed as a 
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tangible, measurable objective, against which actual achievement can be 
17 
compared, including a goal expressed as a quantitative standard, value, or 
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rate; 
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(e) "Performance indicator" refers to a particular value or characteristic used to 
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measure output or outcome; 
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(f) "Program activity" refers to a specific activity or project as listed in the 
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program and financing schedules of the annual budget of the government; 
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(g) "Program 
evaluation" 
refers 
to 
an 
assessment, 
through 
objective 
24 
measurement and systematic analysis, of the manner and extent to which 
25 
government programs achieve intended objectives; and 
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(h) "Secretary" refers to me Secretary of the Department of Budget and 
27 
Management (DBM). 
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SEC. 4. Strategic Plan. - No less than thirty (30) days after the start of the 
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fiscal year, the head of each agency shall submit to the Secretary and to Congress, a 
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strategic plan for program activities, to cover a period of not less than five (5) years 
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from the fiscal year in which it is submitted, to be updated and revised at least every 
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three (3) years. Such plan shall contain: 
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35 
(a) A comprehensive mission statement covenng the major functions and 
36 
operations of the agency; 
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(b) General goals and objectives, including outcome- related goals and objectives, 
2 
for the major functions and operations of the agency; 
3 
(c) A description of how the goals and objectives are to be achieved, including a 
4 
description of the operational processes, skills and technology, and the 
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human, capital, information, and other resources required to meet those goals 
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and objectives; 
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(d) A description of how the performance goals included in the plan required by 
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Medium Term Philippine Development Plan (MTPDP) shall be related to the 
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general goals and objectives in the strategic plan; 
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(e) An identification of key factors external to the agency and beyond its control 
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that could significantly affect the achievement of the general goals and 
12 
objectives; and 
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(f) A description of the program evaluations used in establishing or revising 
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general goals and objectives, with a schedule for future program evaluations. 
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SEC. 5. Annual Perfonnance Plan. - Aside from the strategic plan for 
17 
program activities, all national government agencies shall submit to the Secretary 
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and to Congress, no later than thirty (30) days after the start of the fiscal year, an 
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annual performance plan. To the extent applicable, the annual performance plan 
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shall: 
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(a) Establish performance goals to be achieved by a program or activity; 
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(b) Express such goals in an objective, quantifiable, and measurable form unless 
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authorized to be in an alternative form under Section 6 of this Act; 
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(c) Describe the operational processes, skills and technology, and the human, 
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capital, information, or other resources required to meet the performance 
27 
goals; 
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(d) Establish performance indicators to be used in measuring or assessing the 
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relevant outputs, service levels, and outcomes of each program activity; 
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(e) Provide a basis for comparing actual program results with the esta'olished 
31 
performance goals; and 
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(f) Describe the means to be used to verify and validate measured values. 
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SEC. 6. Alternative Reporting. - If an agency, in consultation with the DBM, 
35 
determines that it is not feasible to express the performance goals for a particular 
36 . program activity in an objective, quantifiable, and measurable form, the Secretary 
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1 
may authorize an alternative form of reporting. Such alternative form shall state 
2 
why it is not feasible or practical to express a performance goal in any form for the 
3 
program activity and shall include separate descriptive statements of: 
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5 
(a) A minimally effective program and a successful program; 
6 
(b) Such alternative as authorized by the Secretary, with sufficient precision and 
7 
in such terms that would allow for an accurate, independent determination of 
8 
whether the program activity's performance meets the criteria. 
9 
10 
An agency may aggregate, disaggregate, or consolidate program activities, 
11 
except that any aggregation or consolidation may not omit or minimize the 
12 
significance of any program activity constituting a major function or operation for 
13 
the agency. 
14 
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SEC. 7. Confidentiality. - An agency may submit with its annual performance 
16 
plan an appendix covering any portion of the plan that is specifically authorized 
17 
under criteria established by an executive order to be kept secret in the interest of 
18 
na tional defense or foreign policy, or is proper! y classified pursuant to such 
19 
executive order. 
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SEC. 8. Program Performance Reports. - No later than thirty (30) days after 
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the start of the fiscal year immediately following the effectivity of this Act, and every 
• 
23 
year thereafter, the head of each agency shall prepare and submit to the President of 
24 
the Philippines and to Congress, a report on program performance for the previous 
25 
fiscal year. 
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Each program performance report shall set forth the performance indicators 
28 
established in the agency performance plan under Section 5 of this Act, along with 
29 
the actual program performance achieved compared with the performance goals 
30 
expressed in the plan for that fiscal year. 
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Where a performance goal has not been met, including when a program 
33 
activity's performance is determined not to have met the criteria of a successful 
34 
program activity or a corresponding level of achievement if another alternative form 
35 
is used, the report shall contain the following: 
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(a) Reasons for failure to achieve the goal; and 
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1 
(b) Proposals for achieving the established performance goal, or if the 
2 
performance goal is impractical or infeasible, the reasons for such and the 
3 
corresponding recommended action. 
4 
5 
If performance goals are specified in an alternative form under Section 6 of 
6 
this Act, the results of such program shall be described in relation to such 
7 
specifications, including whether the performance failed to meet the criteria of a 
8 
minimally effective or successful,program. 
9 
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SEC. 9. Exemption. - The Secretary may exempt from the requirements of 
11 
Sections 4 and 5 of this Act, any agency with an annual outlay of less than Fifty 
12 
Million Pesos (PhP50,000,000). 
13 
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SEC. 10. Piloting. - The Secretary, after consultation with the head of each 
15 
agency, shall designate not less than ten (10) agencies as pilot projects in 
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performance measurement for the first three (3) fiscal years immediately following 
17 
the effectivity of this Act. The selected agencies shall reflect a representative range of 
18 
government functions and capabilities in measuring and reporting program 
19 
performance. 
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Pilot projects in the designated agencies shall undertake the preparation of 
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performance plans under Section 4, and program performance reports under Section 
23 
5, for one or more of the major functions and operations of the agency. A strategic 
24 
plan shall be used when preparing agency performance plans during one or more 
25 
years of the pilot period. 
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No later than the end of the third fiscal year from the start of the piloting, the 
28 
Secretary shall submit a report to the President and to Congress, which shall assess 
29 
the benefits, costs and usefulness of the plans and reports prepared by the pilot 
30 
agencies in meeting the purposes of this Act. 
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SEC. 11. Training. - The National Economic and Development Authority 
33 
(NED A) shall, in consultation wUh the DBM and the Commission on Audit (COA), 
34 
develop a strategic planning and performance measurement training component for 
35 
its management training program and otherwise provide managers with an 
5 


1 
orientation on the development and use of strategic planning and program 
2 
performance measurement. 
3 
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SEC. 12. Compliance. - The mandated functions under this Act shall be 
5 
considered inherently governmental functions. The drafting of performance plans 
6 
and reports shall be performed only by National Government employees. 
7 
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SEC. 13. Construction. - No provision or amendment made by this Act may be 
9 
construed as: 
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(a) Creating any right, privilege, benefit, or entitlement for any person who is not 
11 
an officer or employee of the Philippine government acting in such capacity, 
12 
and no person who is not an officer or employee of the Philippine 
13 
government acting in such capacity shall have standing to file any civil action 
14 
in a court of the Philippines to enforce any provision or amendment made by 
15 
this Act; or 
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(2) Superseding any statutory requirement, including any requirement under 
17 
Book VI of Executive Order No. 292 or the Revised Administrative Code of 
18 
1991. 
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SEC. 14. Repealing Clause. - All laws, presidential decrees, executive orders, 
21 
or rules and regulations, which are contrary to the provisions of this Act are hereby 
22 
repealed, amended and modified accordingly. 
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SEC. 15. Separability Clause. - If any part of this Act shall be held to be 
25 
unconstitutional or invalid, other parts or provisions hereof which are not affected 
26 
thereby shall continue to be in full force and effect. 
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SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
6