FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THI: PHILIPPINES 
) 
First Regular Session 
'11 
MAY 31 
;:> 6 :21 
SENATE 
COMMITTEE REPORT NO. 
46 
Submitted Jointly by the Committees on 
Finance 
and Constitutional 
Amendments, Revision of Codes and Laws on 
MAY 3 1 2011 
. 
Re: Senate Bill No. 
2857 (Prepared by the Committees) 
Recommending its approval in substitution of S. B. No. 2186 
Sponsor: Senator Franklin M. Drilon 
Mr. President: 
The Committees on Finance and Constitutional Amendments, Revision of Codes 
and Laws to which were primarily and secondarily referred Senate Bill No. 2186, 
introduced by Senator Teofisto "TG" Guingona III, entitled: 
"AN ACT 
INSTITUTIONALIZING 
THE 
PARTICIPATION 
OF 
BONA 
FIDE 
PEOPLE'S 
ORGANIZATION 
(POs) 
AND 
NON-GOVERNMENT 
ORGANIZATIONS (NGOs) IN THE DELIBERATION OF THE ANNUAL 
BUDGET IN CONGRESS AND LOCAL GOVERNMENT UNITS (LGUs), 
PROVIDING 
EFFECTIVE 
MECHANISMS THEREFOR, 
AND 
FOR 
OTHER PURPOSES" 
have considered the same and have the honor to report thlil/V, ~ 
to the Senate with 
the recommendation that the attached bill, S. B. No. 
tG 0 [) '1 , prepared by the 
Committees, entitled: 
"AN ACT 
INSTITUTIONALIZING THE PARTICIPATION OF CIVIL SOCIETY 
ORGANIZATIONS 
(CSOs) 
IN 
THE 
PREPARATION 
AND 
AUTHORIZATION PROCESS OF THE ANNUAL NATIONAL BUDGET, 
PROVIDING 
EFFECTIVE 
MECHANISMS THEREFOR, 
AND 
FOR 
OTHEH PURPOSES" 
be approved in substitution of S. B. No. 2186, with Senators Guingona III and Drilon as 
authors thereof. 


RESPECTFULLY SUBMITTED 
('-&l'l~<' }1Jr;,"'''''' evch~> ,,' 
MIRIAM DEFEN,.lpOR SANTI 
0 
Chairperson, Committee on 
onstitutional 
Amendments, Revision of Codes and Laws 
Member, Committee on Finance 
EDGARDO J. ANGARA 
Vice Chairperson, Committee on Finance; 
Committee on Constitutional Amendments, 
Revision of Codes and Laws 
P~A2b~'1'sON 
M 
b9r. Committee on Finance; Committee 
on . onstitutional Amendments, Revision of 
Codes 
d Laws 
MANUEL M. LAPID 
Member, Committee Finance; Committee 
on Constitutional,Amendments, Revision of 
Codes and Laws 
MANNY VILLAR 
Member, Committee on Finance; Committee 
on Constitutional Amendments, Revision of 
Codes and Laws 
~: ~ ~~~f:~J. 
PIA f.' o.1tVET 
0 
(1" 
Member, Com i tee on Fin~ 
NKLIN M. DRILON 
Ch irperson, Committee on Finance 
M mber, Committee on Constitutional 
A endments, Revision of Codes and 
JOKER P. ARROYO 
Member, Committee on Finance 
r, Committee on Finance 
FRANCIS G. ESCUDERO 
Member, Committee on Finance 
LOREN B. LEGARDA 
Member, Committee Finance 
~ 
FERDINA~R' M1.RCOS, JR. 
Member, C mmittee Finance; 
Committe on Constitutional 
Amendments, Revision of Codes and 
Laws 


. , . , ... 
& 
• 
• 
e 
, 
• 
, 
.. 
FRA 
S. PANGILINAN .... ::: 
Member, 
ommittee Finance; Cominittee on 
Constitl,l' 
al Amendments, Revision of 
Codes and Laws 
. 
/ 
IM7i Jh.~ 
;J1!e~~ 
SERGIi"R. OSMENA III 
Member, Committee on Finance 
JUAN MIGUEL F. ZUBIRI 
Member, Committee Finance; Committee on 
Constitutional Amendments, Revision of 
Codes and Laws 
=! 
~a 
~l;l:'"i G. RECTO 
Vice c.:hairperson, Committee on Finance 
~ 
\ \---:=l--~ 
ANTONIO F. TRILLANES IV 
Member, Committee on Constitutional 
Amendments, Revision of Codes and 
Laws 
EX·OFFIC/O MEMBERS 
~UJ){lk\ 
VICENTE C. S~TTO III 
Majority Leader 
ALAN PETER "Companero" S. CAYETANO 
Minority Leader 
HON. JUAN PONCE ENRILE 
President 
Senate of the Philippines 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'11 
t'IAY 31 
:'6 :21 
SENATE 
S. B. No. 2857 
(In substitution of Senate Bill No. 2186) 
Prepared by the Committees on Finance and Constitutional Amendments, 
Revision of Codes and Laws with Senators Teofisto L. Guingona III and 
Franklin M. Drilon as authors thereof 
I 
AN ACT 
2 
INSTITUTIONALIZING THE PARTICIPATION OF CIVIL SOCIETY 
3 
ORGANIZATIONS (CSOs) IN THE PREPARATION AND AUTHORIZATION 
4 
PROCESS OF THE ANNUAL NATIONAL BUDGET, PROVIDING EFFECTIVE 
5 
MECHANISMS THEREFOR, AND FOR OTHER PURPOSES. 
6 
7 
Be it enacted by the Senate and the House of Representatives of the Philippines 
8 
in Congress assembled: 
9 
10 
SECTION 1. Short Title. 
- This Act shall be known as the "People's 
II 
Participation in the National Budget Process Act of 2011". 
12 
13 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
14 
to facilitate the establishment of adequate consultation 
and feedback 
15 
mechanisms to promote meaningful and effective participation of Civil Society 
16 
Organizations (CSOs) in the preparation and authorization of the annual national 
17 
budget in order to ensure that the annual appropriations will be an instrument of 
18 
development that is reflective of the national objectives, strategies and plans 
19 
beneficial to the people. 
20 
21 
SEC. 3. Definition of Terms. - For purposes of this Act, the following 
22 
terms are defined as follows: 
23 
24 
a) "Accreditation" - refers to the registration process of CSOs with the 
25 
National Government Agencies (NGAs) and Government Owned and 
26 
Controlled Corporations (GOCCs), in order to allow them to participate 
27 
in the preparation and authorization of the annual national budget. 
28 
29 
b) "Accredited CSO" - refers to CSOs that have fulfilled the requirements 
30 
in Section 5 of this Act. 
31 
32 
c) "Budget Call" -
refers to the budget document issued by the 
33 
Department of Budget and Management (OBM) and sent to all NGAs 
34 
and GOCCs, which contains the policy guidelines and procedures in 
35 
the preparation of the annual budget, including the budget preparation 


1 
calendar for any given year. The issuance of a budget call signals the 
2 
beginning of the budget preparation phase. 
3 
4 
d) "Civil 
Society Organizations (CSOs)"-
include non-government 
5 
organizations (NGOs), cause oriented groups, people's organizations, 
6 
cooperatives, trade unions, professional associations, faith-based 
7 
organizations, 
media 
groups, 
indigenous 
peoples 
rnovements, 
8 
foundations, and other citizen groups formed primarily for social and 
9 
economic development, which monitor government projects, engage in 
10 
policy discussions, and actively participate in collaborative activities 
II 
with Government. 
12 
13 
e) 'tonflict of Interest" - refers to a condition which occurs when a CSO or 
14 
any of its key officers are involved in multiple interests which prevents 
IS 
an impartial or unbiased attitude towards their participation in the 
16 
national budget process. 
17 
18 
f) "Constructive Engagement" -
refers to a partnership between 
19 
Government and counterpart CSOs marked by sustained dialogue 
20 
towards problem solving while respecting and retaining the focus on 
21 
assertion for reforms. 
22 
23 
g) "Government-Owned or Controlled Corporation (GOCC)" - refers to 
24 
any agency organized as a stock or non-stock corporation, vested with 
25 
functions relating to public needs whether governmental or proprietary 
26 
in nature, and owned by the Government of the Republic of the 
27 
Philippines directly or through its instrumentalities either wholly, or, 
28 
where applicable as in the case of stock corporations, to the extent of 
29 
at least a majority of its outstanding capital stock. 
30 
31 
h) "National Government Agency (NGA)" - refers to a unit of the National 
32 
Government, including the Judiciary, both Houses of Congress, and 
33 
Constitutional Offices. 
34 
35 
i) 
"Participatory Mechanisms" - refer to the means by which CSOs can 
36 
participate meaningfully and effectively in the government process of 
37 
formulating and authorizing an annual national budget that is 
38 
responsive to the needs of the different sectors in our society. 
39 
40 
SEC. 4. Coverage. - This Act shall apply to NGAs and GOCCs whose 
41 
budget is included in the Annual General Appropriations Act. 
42 
43 
SEC. 5.·Accreditation. - The application for accreditation for the Senate, 
44 
the House of Representatives, the Judiciary, and the Constitutional Offices shall 
45 
be filed at the Office of the Secretary, the Secretary-General, the Supreme Court 
46 
Clerk of Court, and the Office of the Chairman, respectively. The application for 
47 
accreditation for other NGAs and GOCCs may be filed at their respective 
48 
regional or central office. The application form shall be prescribed by each office 
49 
and the application for accreditation shall be accompanied by the following 
50 
documents: 
2 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
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, CSO, private 
corporations, other CSOs, and other engagements which may 
result in conflict of interest. 
22 
Upon approval of the application, the head of the concerned NGA or GOCC 
23 
shall issue the certificate of accreditation. This shall be valid for three (3) years 
24 
following its issuance except for the certificate of accreditation issued by the 
25 
Senate and the House of Representatives, which shall be valid for the entire term 
26 
of the Congress under which such certificate of accreditation was issued. 
27 
28 
No application for accreditation shall be disapproved, except upon due 
29 
notice and hearing. The decision of the head of the concerned NGA or GOCC 
30 
shall be rendered within twenty (20) working days from the time of the filing of the 
31 
application. Failure to act on the application shall be deemed an automatic 
32 
approval of the application for accreditation of the concerned CSO, and the 
33 
issuance of a certificate of accreditation shall necessarily ensue. 
34 
35 
SEC. 
6. 
CSO Participation. 
-
In the interest of transparency, CSO 
36 
participation shall be a component in the preparation and authorization of the 
37 
annual national budget. All NGAs and GOCCs shall be required to formulate and 
38 
adopt guidelines outlining the mechanism for the accreditation and active 
39 
participation of the CSOs in the preparation and authorization of the annual 
40 
national budget. 
41 
42 
The DBM shall ensure that the NGA or GOCC has complied with the above 
43 
mentioned requirement. 
44 
45 
Accredited CSOs, through their duly authorized representatives, shall be 
46 
allowed to participate as resource persons in the budget hearings to be 
47 
conducted by the appropriate Committees of each House of Congress, provided 
48 
that they comply with the guidelines to be issued by both Houses of Congress. 
49 
3 


I 
Notwithstanding their participation in the budget hearings to be conducted 
2 
by the appropriate Committees of each House of Congress as provided in the 
3 
preceding paragraph, the Committee on Appropriations of the House of 
4 
Representatives and the Committee on Finance of the Senate shall schedule one 
5 
hearing day for the presentation of the positions of accredited CSOs on the 
6 
budget. 
7 
8 
Sec. 7. Privileges And Incentives. - An accredited CSO shall enjoy the 
9 
following privileges and incentives: 
10 
II 
a) To receive notices and participate as resource person through its duly 
12 
authorized representatives in any regular and consultative public 
13 
meetings, hearings, conferences, and dialogues on matters related to 
14 
the preparation and authorization of the annual national budget; 
15 
16 
b) Access to copies of the budget proposals submitted by the NGAs or 
17 
GOCCs to the DBM; 
18 
19 
c) To provide 
position papers to the DBM on the budget proposal of 
20 
NGAs or GOCCs submitted pursuant to the budget call; 
21 
22 
d) To submit its own alternative or 
proposed budget 
or 
position 
23 
paper; 
24 
25 
e) Access to issuances such as, but not limited to policy orders, circulars 
26 
and memoranda that are related to the budget; 
27 
28 
f) Access to the 
documents prepared by the DBM for submission to 
29 
Congress by the President as a basis for the General Appropriations Bill 
30 
required under Article VII, Section 22 of the Constitution; 
31 
32 
g) To present written proposals on projects and activities of the 
33 
government entities whose budget is under deliberation; and. 
34 
35 
h) Access to committee reports released by both Houses. 
36 
37 
SEC. 8. Notice to CSOs. Notice to CSOs may be sent through electronic 
38 
mail, facsimile machine, postal mail, and by posting at the website of the NGA or 
39 
GOCC concerned. Any of the said modes of sending notices shall be deemed 
40 
compliance to the requirements under Section 7(a) of this Act. 
41 
42 
SEC. 9. Conflict of Interest. It is the responsibility of the eso to inform 
43 
the NGA or GOeC of a conflict of interest in their work with the concerned 
44 
agency, if and when such situation arises. 
45 
46 
However, if the NGA or GOee deems that the eso has a conflict of 
47 
interest with the work of such NGA or GOee, the latter shall give the applicant-
48 
eso an opportunity to explain and prove that no conflict of interest exists. 
49 
4 


I 
In case there is a conflict of interest, the NGA or GOCC shall automatically 
2 
suspend the privileges of the CSO and such shall remain in effect until the 
3 
conflict of interest ceases to exist. 
4 
5 
SEC. 10. Cancellation of Accreditation. - Upon receipt of a verified 
6 
complaint in writing, which charges the holder of a certificate of accreditation 
7 
of having procured their certificate of accreditation by fraud or deceit, the head 
8 
of the NGA or GOCC shall notify and serve a copy of the complaint to the CSO 
9 
concerned, who shall be given an opportunity to be heard. 
10 
II 
Inaction by the 
NGA or GOCC on the said complaint within twenty (20) 
12 
working days from the receipt of such complaint shall be deemed a dismissal of 
13 
the complaint against the CSO involved. 
14 
15 
SEC:. 11. Non-Accredited CSOs. -
Non-accredited CSOs may still 
16 
participate in the budget process by submitting position papers for the NGA's or 
17 
GOCC's consideration and by attending and observing public consultations. They 
18 
may be invited to expound on their critique or proposals when said institutions 
19 
deem it fit. Nothing in this Act shall be construed to deprive non-accredited 
20 
CSOs the 
rights, 
privileges 
and 
incentives 
accorded to them 
by the 
21 
Constitution, existing laws, executive orders, rules and regulations and other 
22 
issuances. 
23 
24 
SEC. 12. Public and Timely Disclosure of Budget Documents and 
25 
Other Relate'd Data. - In order for CSOs to participate in an informed manner, 
26 
the NGA or GOCC shall post on their websites or other public posting areas, 
27 
budget documents to which CSOs shall have access, as provided for under 
28 
Section 7 of this Act. 
29 
30 
SEC. 13. Separability Clause. - If, for any reason, any section or provision 
31 
of this Act is held unconstitutional or invalid, no other section or provision shall be 
32 
affected. 
33 
34 
SEC. 14. Repealing Clause. - All laws, decrees, executive orders, 
35 
rules and 
regulations, 
issuances or any part thereof inconsistent with the 
36 
provisions of this Act are hereby repealed or amended accordingly. 
37 
38 
SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after its 
39 
publication in at least two (2) national newspapers of general circulation. 
40 
41 
Approve~, 
42 
43 
5