SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session
SENATE
Senate Bill N o2 2 1 .9
XO TIME:
BILLS & INDEX
Introduced by SENATOR LACSON
AN AC T INS r n  I TIONALIZING THE PARTICIPATION OF CIVIL 
SOCIETY OKC; AM/. A HONS (( SOs) IN THE PREPARATION AND 
AU 1 HORIZAHON PROC ESS OF H IE ANNUAL NAHONAL 
BUIKiET, PROVIDINC, EEEECHVE MFC HANISMS HIEREFOR. 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The National Budget is the government's most fundamental instrument 
in achieving its policy goals — it can improve our economy, encourage the 
business community, and improve the lives of the marginalized people. Indeed, 
it serves as the lifeblood of the economy and a powerful tool for development.
The budget encompasses all aspects of governance - policies, political 
and social preferences, administrative reforms, delivery of services, to name a 
few. It rellects the government's sincerity and political will to achieve social 
and economic change.
The vital role it plays in the operations of our government, and 
ultimately in the life of every Filipino, demands that there should be 
mechanisms in place that will enable citizens to participate in the budget 
process so as to correct spending priorities and to ensure transparency in the 
appropriation of valuable taxpayer’s money,
The budget process is the arena where a person can exercise his/her 
citizenship through the power to directly influence the social and economic 
priorities for his/her community. It is high time that we encourage our civil 
service organizations (CSOs) to focus their etlbrts into analyzing and 
scrutinizing the budget, in order to steer the government into creating 
meaningful development that is felt by the marginalized sectors.
This bill, known as "The People's Participation in Budget Deliberations 
Act," adheres to the principles of genuine democracy by enshrining the right of 
the people to directly participate in the budget process, thereby preserving the 
people's power in inlluencing priorities underlying the budget for social 
development, 
Specifically, 
this 
bill 
aims to 
institutionalize people's 
participation in the budget deliberations in various levels of government -


national, provincial, municipal down to the barangay level. Without 
underestimating and undermining the capacities of elected representatives in 
crafting a budget that is needed by a particular locality, this bill gives full play 
to the people’s right to participate in all levels of social, political and economic 
decision-making. 
Furthermore, 
it 
institutionalizes 
people’s 
access 
to 
information with regard to how taxpayers’ money is being spent. In a way, this 
is likewise an anti-corruption measure.
Now is the time for Congress to recognize the importance of the direct 
participation by people's organizations and non-government organizations in 
the budget deliberation. We should institutionalize the practice of legislature- 
civil society collaboration in order to achieve a people-oriented budget as well 
as establish transparency and accountability in the budget process.
In view of the foregoing, the immediate enactment of this bill is 
earnestly sought.
PANI
. LACSON
Senator


SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session
SENATE
Senate Bill No. 2219
Introduced by SENATOR LACSON
oUiy
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RPR 29 
P2 21
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AN ACT INSTITUTIONALIZING THE PARTIC IPATION OF CIVIL
sociFiA o r (;a n iz a t io n s (C’SOs) in t iif  p r e p a r a t io n  a nd
AU 111( )KIZA I ION PRO( ESS OF H IE ANNUAL NA I IONAL 
BUIH;F I , PRO\ II)IN(. EFFECTIVE MECHANISMS I IIEREFOR, 
AND EUR OI HER PURPOSES
Be it enacted by the Senate and House of Representatives in Congress 
assembled:
SECTION \, Short Title. This Act shall be known as the "People's 
Participation in the National Budget Process Act of 2019".
SECTION 2, Declaration of Policy, li is hereby declared the policv of 
the State to facilitate the establishment of adequate consultation and feedback 
mechanisms to promote meaningful and effective participation of Civil Society 
Organizations (CSOs) in the preparation and authorization of the annual 
national budget in order to ensure that the annual appropriations will be an 
instrument of development that is reflective of the national objectives, 
strategies and plans beneficial to the people.
SECTION 3. Definition of Terms. For purposes of this Act, the 
following terms are defined as follows:
a) “Accreditation” - refers to the registration process of CSOs with the 
National Government Agencies (NGAs) and Government Owned and 
Controlled Corporations (GOCCs). in order to allow them to participate 
in the preparation and authorization of the annual national budget.
b) “Accredited CSO" - refers to 
requirements in Section 5 of this Act.
CSO/s that have fulfilled the
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c) "Budget Call" - refers to the budget document issued by the 
Department of Budget and Management (DBM) and sent to all NGAs 
and GOCCs. which contains the policy guidelines and procedures in the 
preparation of the annual budget, including the budget preparation 
calendar for any given year. The issuance of a budget call signals the 
beginning of the budget preparation phase.
d) “Civil Society Organizations (CSOs)"- include non-government 
organizations (NGOs), cause-oriented groups, people’s organizations, 
cooperatives, trade unions, professional associations, 
faith-based 
organizations, 
media 
groups, 
indigenous 
peoples 
movements, 
foundations, and other citizen groups formed primarily for social and 
economic development, which monitor government projects, engage in 
policy discussions, and actively participate in collaborative activities 
with the Government.
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e) "ConHici of Interest" - refers to a condition which occurs when a 
CSC or any of its key officers are involved in multiple interests which 
prevent an impartial or unbiased attitude towards their participation in 
the national budget process.
0 "Constructive Engagement” - refers to a partnership between the 
Government and counterpart CSOs marked by sustained dialogue 
towards problem solving while respecting and retaining the focus on 
assertion for reforms.
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g) "Government-Owned or Controlled Corporation (GOCC)" - refers to 
any agency organized as a stock or non-stock corporation, vested with 
functions relating to public needs whether governmental or proprietary 
in nature, and owned by the Government of the Republic of the 
Philippines directly or through its instrumentalities either wholly, or. 
where applicable as in the case of stock corporations, to the extent of at 
least a majority of its outstanding capital slock.
h) "National Government Agency (NGA)" - refers to a unit of the 
National Government, including the Judiciary, both Houses of Congress, 
and Constitutional Offices.
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i) "Participatory Mechanisms" - refer to the means by which CSOs can
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participate meaningfully and effectively in the government process of
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formulating and authorizing an annual national budget that is responsive
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to the needs of the different sectors in our society.
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SECTION 4. Coverage. This Act shall apply to all NGAs and GOCCs
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whose budget is included in the Annual General Appropriations Act.


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SECTION. 5. Accreditation. The application for accreditation for the 
Senate, the House of Representatives, the Judiciary, and the Constitutional 
Offices shall be filed at the Office of the Secretary, the Secretary-General, the 
Supreme Court Clerk of Court, and the Office of the Chairman, respectively. 
The application for accreditation for other NGAs and GOCCs may be filed at 
their respective regional or central office. The application form shall be 
prescribed by each office and the application for accreditation shall be 
accompanied by the following documents:
a. Articles of Incorporation and By-Laws of the applicant CSO:
b. Certificate of Registration and/or other such similar documents, issued 
by an appropriate government agency tasked to register civil society 
organizations, such as but not limited to, the Securities and Exchange 
Commission, Bureau of Labor Relations, Housing and Land Use 
Regulatory Board, Insurance Commission, and the Cooperative 
Development Authority;
c. The list of officers, directors, trustees and members;
d. Duly audited financial statements for the past three (3) years showing 
the assets and liabilities of the organization;
e. Full disclosure of the sources of funds; and
f Full disclosure of service contracts with other NGAs, CSOs. private 
corporations, other CSOs. and other engagements, which may result in 
conflict of interest.
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Upon approval of the application, the head of the concerned NGA orGOCC
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shall issue the certificate of accreditation. This shall be valid for three (3) years
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following its Issuance except for the certificate of accreditation issued by the
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Senate and the House of Representatives, which shall be valid for the entire
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term of the Congress under which such certificate of accreditation was issued.
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No application for accreditation shall be disapproved, except upon due
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notice and hearing, The decision of the head of the concerned NGA or GOCC
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shall be rendered within twenty (20) working days from the time of the filing
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of the application. Failure to act on the application shall be deemed an
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automatic approval of the application for accreditation of the concerned CSO.
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and the issuance of a certificate of accreditation shall necessarily ensue.
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SECTION 6. CSO Participation. In the interest of transparency, CSO
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participation shall be a component in the preparation and authorization of the
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annual national budget. All NGAs and GOCCs shall be required to formulate
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and adopt guidelines outlining the mechanism for the accreditation and active
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participation of the CSOs in the preparation and authorization of the annual
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national budget.
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The DBM shall ensure that the NGA or GOCC has complied with the
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abovementioned requirement.


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Accredited CSOs. through their duly authorized representatives, shall be
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allowed to participate as resource persons in the budget hearings to be
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conducted by the appropriate Committees of each House of Congress, provided
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that they comply with the guidelines to be issued by both Houses of Congress.
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Notwithstanding their participation in the budget hearings to be conducted
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by the appropriate Committees of each House of Congress as provided in the
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preceding paragraph, the Committee on Appropriations of the House of
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Representatives and the Committee on Finance of the Senate shall schedule one
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hearing day for the presentation of the positions of accredited CSOs on the
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budget.
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SECTION 7. Privileges and incentives. An accredited CSO shall enjoy the
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following privileges and incentives:
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a) To have similar participation rights accorded to NGOs in the Local
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Development Councils pursuant to the provisions of RA No. 7160
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otherwise known as the “Local Government Code of 1991” in setting the
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direction of economic, social and other coordinating development efforts in
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the national level;
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b) To receive notices and participate as resource person through its duly
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authorized representatives in any regular and consultative public meetings.
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hearings, conferences, and dialogues on matters related to the preparation
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and authorization of the annual national budget;
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c) To be allowed to observe at the budget deliberations and at the bicameral
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conference;
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d) To have access to copies of the budget proposals submitted by the NGAs
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or GOCCs to the DBM;
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e) To provide position papers to the DBM on the budget proposal of NGAs or
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GOCCs submitted pursuant to the budget call;
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0 To submit its own alternative or proposed budget or position paper;
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g) To have access to issuances such as, but not limited to policy orders,
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circulars and memoranda that are related to the budget;
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h) To have access to the documents prepared by the DBM for submission to
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Congress by the President as a basis for the General Appropriations Bill
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required under Article V!I. Section 22 of the Constitution;
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i) To present written proposals on projects and activities of the government
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entities whose budget is under deliberation; and.


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j) To have immediate access to stenographic notes and committee reports
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released by both Houses including the bicameral conference committee
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report. The bicameral conference committee meetings and all other
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meetings related or associated thereto shall be recorded and be made
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accessible immediately to promote transparency and to allow members of
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both Houses to easily determine how conflicting provisions in 
the
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proposed national budget were reconciled or resolved prior to the
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submission thereof for ratification by both Houses of Congress.
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SECTION. 8. Notice to CSOs. - Notice to CSOs may be sent through
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electronic mail, facsimile machine, postal mail, and by posting at the website of
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the NGA or GOCC concerned. Any of the said modes of sending notices shall
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be deemed compliance to the requirements under Section 7(a) of this Act.
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SECTION. 9. Conflict of Interest. It is the responsibility of the CSO to
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inform the NGA or GOCC of a conflict of interest in their work with the
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concerned agency, if and when such situation arises.
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However, if the NGA or GOCC deems that the CSO has a conflict of
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interest with the work of such NGA or GOCC. the latter shall give the
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applicant-CSO an opportunity to explain and prove that the conflict of interest
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does not exists,
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SECTION. 10. Cancellation of Accreditation. Upon receipt of a verified
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complaint in writing, which charges the holder of a certificate of accreditation
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of having procured their certificate of accreditation by fraud or deceit, the Head
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of the NGA or GOCC shall notify and serve a copy of the complaint to the
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CSO concerned, who shall be given an opportunity to be heard.
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Inaction by the NGA or GOCC on the said complaint within twenty (20)
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working days from the receipt of such complaint shall be deemed a dismissal of
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the complaint against the CSO involved.
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SECTION 11. Non-Accredited CSOs. Non-accredited CSOs may still
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participate in the budget process by submitting position papers for the
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consideration of the NGA or GOCC and by attending and observing public
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consultations. They may be invited to expound on their critique or proposals
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when said institutions deem it fit. Nothing in this Act shall be construed to
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deprive non-accredited CSOs the rights, privileges and incentives accorded to
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them by the Constitution, existing laws, executive orders, rules and regulations
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and other issuances.
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SECTION 12. Public and Timely Disclosure of Budget Documents
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and Other Related Data. In order for CSOs to participate in an informed
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manner, the NGA or GOCC shall post on their websites or other public posting
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areas, budget documents to which CSOs shall have access, as provided for
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under Section 7 of this Act.


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SECTION 13. Separability Clause. If any provision of this Act shall be
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declared invalid or unconstitutional, the remaining part or provisions not
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otherwise affected shall remain in force.
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SECTION 
14. Repealing Clause. Any law, decree, ordinance,
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administrative circulars not consistent with any provision of this Act is hereby
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amended, repealed or modified accordingly.
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SECTION 15. Effectivity Clause. This Act shall take effect fifteen (15)
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days after its complete publication in the Official Gazette or in at least two (2)
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newspapers of general circulation.
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Approved,
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