TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
S. No. 32
■ -I *:• C;
25 JUL-2 P5 *15
Introduced by Senator Panfilo M. Lacson
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 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 marginalized people. As the lifeblood of the 
economy and a powerful tool for development, this reflects the government's 
commitment and political will to achieve real and meaningful social and economic 
change.
Time and again, this representation has emphasized the need for mechanisms 
that ensure that the entire budget process adheres to the principles of good 
governance. This is to assure the Filipino taxpayers that their monies are spent 
effectively, transparently, and in line with the true needs of the people.
This bill, known as "People's Participation in the National Budget Process Act", 
is therefore being proposed to empower legitimate civil service organizations (CSOs) 
to directly participate in the budget process. Specifically, this bill aims to institutionalize 
people's participation in budget deiiberations at various ievels of government -


national, provincial, municipal, and 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 about how taxpayers' 
money is being spent. In a way, this bill serves as our people's safeguard against 
corruption through public oversight on how our taxes are being spent.
Consistent with the current administration's call for a people-centered 
governance in the Philippine Development Plan 2023-2028, this proposed measure 
aims to reinforce the call for a fiscally responsible and participatory government, where 
every peso spent directly contributes to shared growth and improved public services. 
Needless to say, strengthening a collaborative approach between the legislature and 
civil society is a step towards achieving a people-oriented budget—a budget that truly 
reflects the aspirations and priorities of the Filipino people.
In view of the foregoing, the immediate enactment of this bill is earnestly
sought.
PAN
I. LACSON
Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. ag
25 JOL-2 P5:15
Introduced by Senator Panfilo M. Lacson
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 OTHER PURPOSES
Be it enacted by the Senate and House of Representatives in Congress 
assembled:
1 
Section 1. Short Title. This Act shaii be known as the "People's Participation in
2 
the National Budget Process Act".
3 
Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to
4 
facilitate the establishment of adequate consultation and feedback mechanisms to
5 
promote meaningful and effective participation of Civil Society Organizations (CSOs)
6 
in the preparation and authorization of the annual national budget in order to ensure
7 
that the annual appropriations will be an instrument of development that is reflective
8 
of the national objectives, strategies and plans beneficial to the people.
9 
Sec. 3. Definition of Terms. For purposes of this Act, the following terms are
10 
defined as follows:
11 
a. Accreditation - refers to the registration process of CSOs with the National
12 
Government Agencies (NGAs) and Government-Owned and Controlled
13 
Corporations (GOCCs), in order to allow them to participate in the preparation
14 
and authorization of the annual national budget;
15 
b. Accredited CSO- refers to CSOs that have fulfilled the requirements in Section
16 
5 of this Act;


1 
c. Budget Call - refers to the budget document issued by the Department of
2 
Budget and Management (DBM) and sent to all NGAs and GOCCs, which
3 
contains the policy guidelines and procedures in the preparation of the annual
4 
budget, including the budget preparation calendar for any given year. The
5 
issuance of a budget call signals the beginning of the budget preparation phase;
6 
d. Civil Society Organizations (CSOs) - include non-government organizations
7 
(NGOs), cause-oriented groups, people's organizations, cooperatives, trade
8 
unions, professional associations, faith-based organizations, media groups,
9 
indigenous peoples movements, foundations, and other citizen groups formed
10 
primarily for social and economic development, which monitor government
11 
projects, engage in policy discussions, and actively participate in collaborative
12 
activities with Government;
13 
e. Conflict of Interest - refers to a condition which occurs when a CSO or any of
14 
its key officers are involved in multiple interests which prevent an impartial or
15 
unbiased attitude towards their participation in the national budget process;
16 
f. Constructive Engagement - refers to a partnership between Government and
17 
counterpart CSOs marked by sustained dialogue towards problem solving while
18 
respecting and retaining the focus on assertion for reforms;
19 
g. Government-Owned or Controlled Corporation (GOCC) - refers to any agency
20 
organized as a stock or non-stock corporation, vested with functions relating to
21 
public needs whether governmental or proprietary in nature, and owned by the
22 
Government of the Republic of the Philippines directly or through its
23 
instrumentalities either wholly, or, where applicable as in the case of stock
24 
corporations, to the extent of at least a majority of its outstanding capital stock;
25 
h. National Government Agency (NGA) - refers to a unit of the National
26 
Government, including the Judiciary, both Houses of Congress, and
27 
Constitutional Offices; and
28 
i. Participatory Mechanisms - refer to the means by which CSOs can participate
29 
meaningfully and effectively in the government process of formulating and
30 
authorizing an annual national budget that is responsive to the needs of the
31 
different sectors in our society.


1 
Sec. 4. Coverage. This Act shall apply to all NGAs and GOCCs whose budget is
2 
included in the Annual General Appropriations Act.
3 
Sec. 5. Accreditation. The application for accreditation for the Senate, the
4 
House of Representatives, the Judiciary, and the Constitutional Offices shall be filed
5 
at the Office of the Secretary, the Secretary-General, the Supreme Court Clerk of
6 
Court, and the Office of the Chairman, respectively. The application for accreditation
7 
for other NGAs and GOCCs may be filed at their respective regional or central office.
8 
The application form shall be prescribed by each office and the application for
9 
accreditation shall be accompanied by the following documents:
10 
a. Articles of Incorporation and By-Laws of the applicant CSO;
11 
b. Certificate of Registration and/or other such similar documents, issued by an
12 
appropriate government agency tasked to register civil society organizations,
13 
such as but not limited to, the Securities and Exchange Commission, Bureau of
14 
Labor Relations, Department of Human Settlements and Urban Development,
15 
Insurance Commission, and the Cooperative Development Authority.
16 
c. The list of officers, directors, trustees, and members;
17 
d. Duly audited financial statements for the past three (3) years showing the
18 
assets and liabilities of the organization;
19 
e. Full disclosure of the sources of funds; and
20 
f. Full disclosure of service contracts with other NGAs, CSO, private corporations,
21 
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 shall
23 
issue the certificate of accreditation. This shall be valid for three (3) years following
24 
its issuance, except for the certificate of accreditation issued by the Senate and the
25 
House of Representatives, which shall be valid for the entire term of the Congress
26 
under which such certificate of accreditation was issued.
27 
No application for accreditation shall be disapproved, except upon due notice and
28 
hearing. The decision of the head of the concerned NGA or GOCC shall be rendered
29 
within twenty (20) working days from the time of the filing of the application. Failure
30 
to act on the application shall be deemed an automatic approval of the application for
31 
accreditation of the concerned CSO, and the issuance of a certificate of accreditation
32 
shall necessarily ensue.


1 
Sec. 6. CSO Participation. In the interest of transparency, CSO participation shail
2 
be a component in the preparation and authorization of the annuai nationai budget.
3 
All NGAs and GOCCs shall be required to formuiate and adopt guideiines outiining the
4 
mechanism for the accreditation and active participation of the CSOs in the preparation
5 
and authorization of the annual national budget.
6 
The DBM shall ensure that the NGA or GOCC has complied with the above-
7 
mentioned requirement.
8 
Accredited CSOs, through their duly authorized representatives, shall be allowed
9 
to participate as resource persons in the budget hearings to be conducted by the
10 
appropriate Committees of each House of Congress, provided that they comply with
11 
the guidelines to be issued by both Houses of Congress.
12 
Notwithstanding their participation in the budget hearings to be conducted by the
13 
appropriate Committees of each House of Congress as provided in the preceding
14 
paragraph, the Committee on Appropriations of the House of Representatives and the
15 
Committee on Finance of the Senate shali scheduie one hearing day for the
16 
presentation of the positions of accredited CSOs on the budget.
17 
Sec. 7. Priviieges and Incentives. An accredited CSO shall enjoy the following
18 
privileges and incentives:
19 
a. To have similar participation rights accorded to NGOs in the Local Development
20 
Councils pursuant to the provisions of RA No. 7160 otherwise known as the
21 
"Local Government Code of 1991", in setting the direction of economic and
22 
social development, coordinating development efforts within its territorial
23 
jurisdiction;
24 
b. To receive notices and participate as resource person through its duly
25 
authorized representatives in any reguiar and consuitative public meetings,
26 
hearings, conferences, and diaiogues on matters reiated to the preparation and
27 
authorization of the annual national budget;
28 
c. To be allowed to observe at the budget deliberations and at the bicameral
29 
conference;
30 
d. Access to copies of the budget proposals submitted by the NGAs or GOCCs to
31 
the DBM;


1 
e. To provide position papers to the DBM on the budget proposal of NGAs or
2 
GOCCs submitted pursuant to the budget call;
3 
f. To submit its own alternative or proposed budget or position paper;
4 
g. Access to issuances such as, but not limited to, policy orders, circulars and
5 
memoranda that are related to the budget;
6 
h. Access to the documents prepared by the DBM for submission to Congress by
7 
the President as a basis for the General Appropriations Bill required under
8 
Article VII, Section 22 of the Constitution;
9 
i. To present written proposals on projects and activities of the government
10 
entities whose budget is under deliberation; and
11 
j. Immediate access to stenographic notes and committee reports released by
12 
both Houses, including the bicameral conference committee report. The
13 
bicameral conference committee meetings and all other meetings related or
14 
associated thereto shall be recorded and be made accessible immediately to
15 
promote transparency and to allow members of both Houses to easily
16 
determine how conflicting provisions in the proposed national budget were
17 
reconciled or resolved prior to the submission thereof for ratification by both
18 
Houses of Congress.
19 
Sec. 8. Notice to CSOs. Notice to CSOs may be sent through electronic mail,
20 
facsimile machine, postal mail, and by posting at the website of the NGA or GOCC
21 
concerned. Any of the said modes of sending notices shall be deemed compliance to
22 
the requirements under Section 7(a) of this Act.
23 
Sec. 9. Conflict of Interest. It is the responsibility of the CSO to inform the NGA or
24 
GOCC of a conflict of interest in their work with the concerned agency, if and when
25 
such a situation arises.
26 
However, if the NGA or GOCC deems that the CSO has a conflict of interest with
27 
the work of such NGA or GOCC, the latter shall allow the applicant-CSO to explain and
28 
prove that the conflict of interest does not exist.
29 
Sec. 10. Cancellation of Accreditation. Upon receipt of a verified complaint in
30 
writing, which charges the holder of a certificate of accreditation of having procured
31 
their certificate of accreditation by fraud or deceit, the head of the NGA or GOCC shall


1 
notify and serve a copy of the complaint to the CSO concerned, who shall be given an
2 
opportunity to be heard.
3 
Inaction by the NGA or GOCC on the said complaint within twenty (20) working
4 
days from the receipt of such complaint shall be deemed a dismissal of the complaint
5 
against the CSO involved.
6 
Sec. 11. Non-Accredited CSOs. Non-accredited CSOs may still participate in the
7 
budget process by submitting position papers for the consideration of the NGA or
8 
GOCC and by attending and observing public consultations. They may be invited to
9 
expound on their critique or proposals when said institutions deem it fit. Nothing in
10 
this Act shall be construed to deprive non-accredited CSOs of the rights, privileges,
11 
and incentives accorded to them by the Constitution, existing laws, executive orders,
12 
rules and regulations, and other issuances.
13 
Sec. 12. Public and Timely Disclosure of Budget Documents and Other Related
14 
Data. For CSOs to participate in an informed manner, the NGA or GOCC shall post on
15 
their websites or other public posting areas, budget documents to which CSOs shall
16 
have access, as provided for under Section 7 of this Act.
17 
Sec. 13. Separability Clause. If any provision of this Act shall be declared invalid
18 
or unconstitutional, the remaining part or provisions not otherwise affected shall
19 
remain in force.
20 
Sec. 14. Repealing Clause. Any law, decree, ordinance, administrative circulars
21 
not consistent with any provision of this Act is hereby amended, repealed, or modified
22 
accordingly.
23 
Sec. 15. Effectivity Clause. This Act shall take effect fifteen (15) days after its
24 
complete publication in the Official Gazette or in at least two (2) newspapers of general
25 
circulation.
26 
Approved,