EIJv
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 804
mmit
25 AUG-4 PI :25
RECEIVED £V.
Introduced by Senator Loren Legarda
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 OTHER PURPOSES
EXPLANATORY NOTE
Civil society participation ensures that the voices of ordinary citizens, especially 
those from marginalized sectors, are heard in governance. In 2023, the Philippines 
scored 0.649 on the Civil Society Participation Index, slightly above the global average 
of 0.641 but down from 0.712 in 2022. This remains close to the country's historical 
average of 0.647, but marks a steady decline from the 2016 high of 0.83, reflecting a 
shrinking space for civic engagement over time.1 While civil society in the Philippines 
has historically played an active role in various facets of governance, one critical area 
that remains underutilized is national budgeting.
To reverse this trend and expand the avenues for meaningful participation, this 
bill is introduced to institutionalize civil society's role in the preparation of the annual 
national budget. By giving the people a more active voice in determining how public 
resources are allocated, the bill seeks to foster a more participatory and accountable
1 The Civil Society Participation index is produced by the Varieties of Democracy (V-Dem) Institute, a 
globally recognized research center based at the University of Gothenburg, known for its rigorous and 
peer-reviewed assessments of democratic institutions worldwide. The Global Economy. (2025). Philippines: 
Civil society participation index. Retrieved July 29, 2025, from
https://www.theglobaleconomy.com/Philippines/civil_society_participation_index/ V-Dem (2025) - 
processed by Our World in Data. Civil society participation index - V-Dem [dataset]. Our World in Data, 
"Democracy" topic. Retrieved July 29,2025, from https://ourworldindata.org/grapher/civil-society- 
participation-index?mapSelect=~PHL


budgeting process, one that directly aligns public spending with the needs and 
priorities of the communities it intends to serve.
This bill strengthens public accountability in budget preparation and 
authorization by institutionalizing the participation of legitimate and independent Civil 
Society Organizations (CSOs) at all levels of government. Beyond merely granting 
access to hearings and budget documents, the bill now establishes a comprehensive 
accreditation framework, mandates sectoral representation, and integrates CSO 
involvement within the existing performance-based budgeting system.
Among its new provisions are:
• At least 30% of participating CSOs must come from marginalized, 
disadvantaged, or underrepresented sectors, such as women. Indigenous 
Peoples, persons with disabilities, and environmental advocates. This provision 
ensures that the most affected by public spending decisions are meaningfully 
represented.
• To safeguard the independence of the process, the bill mandates full disclosure 
of affiliations, contracts, and funding sources. A Code of Conduct and Grievance 
Redress Mechanism will also be institutionalized for CSOs to uphold standards 
of ethical participation.
• It requires NGAs and GOCCs to make available all relevant budget documents, 
agency performance ratings, and hearing records, including those from the 
bicameral conference committee. This will allow for evidence-based monitoring 
and policy critique by CSOs.
• 
CSOs will have access not only to budget proposals but also to agency 
performance indicators. This empowers them to assess whether public 
expenditures are aligned with stated outcomes and national goals.
The national budget is a reflection of national priorities, a tool for governance, 
and a measure of public accountability. For civil society participation to be truly 
meaningful in this process, mechanisms must not only promote engagement but also 
ensure integrity, transparency, and fairness in how that participation is structured and 
exercised.


By embedding these new safeguards and participatory structures, this proposed 
measure seeks to shift the culture of budgeting from closed-door negotiations to one 
that is grounded in public oversight, constructive engagement, and sectoral equity.
In view of the foregoing, the immediate enactment of this bill is earnestly
sought.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Bgp ^eiu'Ue
of i?!*’ ^.'trrtarp
25 AUG-4 PI :25
SENATE
S. No. 804
RtCEIVLD BV.
Introduced by Senator Loren Legarda
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 OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "People's Participation
2 
in 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 
1. Accreditation - refers to the registration process of CSOs with the
12 
National Government Agencies (NGAs) and Government-Owned and
13 
Controlled Corporations (GOCCs), in order to allow them to participate
14 
in the preparation and authorization of the annual national budget;
15 
2. Accredited CSO - refers to CSOs that have fulfilled the requirements in
16 
Section 5 of this Act;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
3. 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;
4. 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 
Government;
5. Conflict of Interest - refers to a condition which occurs when a CSO or 
any of its key officers are involved in multiple interests that prevent an 
impartial or unbiased attitude towards their participation in the national 
budget process;
6. Constructive Engagement - refers to a partnership between Government 
and counterpart CSOs marked by sustained dialogue towards problem 
solving while respecting and retaining the focus on assertion for reforms;
7. 
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 stock;
8. National Government Agency (NGA) - refers to a unit of the National 
Government, including the Judiciary, both Houses of Congress, and 
Constitutional Offices; and


1 
9. Participatory Mechanisms - refer to the means by which CSOs can
2 
participate meaningfully and effectively in the government process of
3 
formulating and authorizing an annual national budget that is responsive
4 
to the needs of the different sectors in our society.
5 
Sec. 4. Coverage. -This Act shall apply to all NGAs and GOCCs whose budget
6 
is included in the Annual General Appropriations Act.
7 
Sec. 5. Accreditation. - The application for accreditation for the Senate, the
8 
House of Representatives, the Judiciary, and the Constitutional Offices shall be filed
9 
at the Office of the Secretary, the Secretary-General, the Supreme Court Clerk of
10 
Court, and the Office of the Chairman, respectively.
11 
Each office shall prescribe its own application form, which shall conform to the
12 
eligibility criteria provided under this Act and incorporate the minimum required
13 
information prescribed by the Department of Budget and Management (DBM). The
14 
DBM-prescribed standards shall be adopted by all NGAs and GOCCs to ensure
15 
uniformity and consistency in the accreditation process. Each office shall make the
16 
prescribed application form publicly available, including through their official websites.
17 
For all other NGAs and GOCCs, the application for accreditation may be filed at their
18 
respective regional or central offices. The completed application shall be submitted
19 
together with the following supporting documents:
20 
1. Articles of Incorporation and By-Laws of the applicant CSO;
21 
2. Certificate of Registration and/or other such similar documents, issued
22 
by an appropriate government agency tasked to register civil society
23 
organizations, such as, but not limited to, the Securities and Exchange
24 
Commission, Bureau of Labor Relations, Department of Human
25 
Settlements and Urban Development, Insurance Commission, and the
26 
Cooperative Development Authority.
27 
3. The list of officers, directors, trustees, and members;
28 
4. Duly audited financial statements for the past three (3) years showing
29 
the assets and liabilities of the organization;
30 
5. Full disclosure of the sources of fund, including grants and donations
31 
from foreign or domestic entities; and


1 
6. Full disclosure of service contracts with other NGAs, CSO, GOCC, private
2 
corporations, other CSOs, and other engagements which may result in
3 
conflict of interest.
4 
These disclosures shall be submitted under oath and made publicly available
5 
through the websites of the concerned NGA or GOCC, subject to existing laws on data
6 
privacy and confidentiality.
7 
Upon approval of the application, the head of the concerned NGA or GOCC shall
8 
issue the certificate of accreditation. This shall be valid for three (3) years following
9 
its issuance, except for the certificate of accreditation issued by the Senate and the
10 
House of Representatives, which shall be valid for the entire term of the Congress
11 
under which such certificate of accreditation was issued.
12 
No application shall be denied without due notice and hearing. The decision of
13 
the head of the concerned NGA or GOCC shall be rendered within twenty (20) working
14 
days from the time of the filing of the application. Failure to act upon the application
15 
within the prescribed period shall constitute automatic approval of the application for
16 
accreditation of the concerned CSO, and the issuance of a certificate of accreditation
17 
shall necessarily ensue.
18 
Sec. 6. Eligibility Criteria. - To be accredited under this Act, a CSO must:
19 
1. Have at least three (3) years of demonstrated experience in civic
20 
engagement, public accountability, or development work;
21 
2. Have no record of administrative or criminal liability involving fraud,
22 
misrepresentation, or misuse of public funds;
23 
3. Be independent from any political party or government official;
24 
4. Have an identifiable sectoral, geographic, or thematic constituency;
25 
5. Be able to demonstrate capacity to engage in budget analysis and
26 
advocacy, including through existing projects, networks, or trained
27 
personnel.
28 
Sec. 7. CSO Participation. - In the interest of transparency, CSO participation
29 
shall be a component in the preparation and authorization of the annual national
30 
budget. All NGAs and GOCCs shall be required to formulate and adopt guidelines
31 
outlining the mechanism for the accreditation and active participation of the CSOs in
32 
the preparation and authorization of the annual national budget.


1 
The DBM shall ensure that the NGA or GOCC has complied with the above-mentioned
2 
requirement.
3 
Accredited CSOs, through their duly authorized representatives, shall be
4 
allowed to participate as resource persons in the budget hearings to be conducted by
5 
the appropriate Committees of each House of Congress, provided that they comply
6 
with the guidelines to be issued by both Houses of Congress.
7 
Notwithstanding their participation in the budget hearings to be conducted by
8 
the appropriate Committees of each House of Congress as provided in the preceding
9 
paragraph, the Committee on Appropriations of the House of Representatives and the
10 
Committee on Finance of the Senate shall schedule one hearing day for the
11 
presentation of the positions of accredited CSOs on the budget.
12 
Sec. 8. Privileges and Incentives. - An accredited CSO shall enjoy the following
13 
privileges and incentives:
14 
1. To have similar participation rights accorded to NGOs in the Local
15 
Development Councils pursuant to the provisions of RA No. 7160
16 
otherwise known as the "Local Government Code of 1991", in setting the
17 
direction of economic and social development, coordinating
18 
development efforts within its territorial jurisdiction;
19 
2. To receive notices and participate as resource person through its duly
20 
authorized representatives in any regular and consultative public
21 
meetings, hearings, conferences, and dialogues on matters related to
22 
the preparation and authorization of the annual national budget;
23 
3. To observe at the budget deliberations and at the bicameral conference;
24 
4. Access to copies of the budget proposals submitted by the NGAs or
25 
GOCCs to the DBM;
26 
5. To provide position papers to the DBM on the budget proposal of NGAs
27 
or GOCCs submitted pursuant to the budget call;
28 
6. To submit its own alternative or proposed budget or position paper;
29 
7. Access to issuances such as, but not limited to, policy orders, circulars
30 
and memoranda that are related to the budget;


1 
8. Access to the documents prepared by the DBM for submission to
2 
Congress by the President as a basis for the General Appropriations Bill
3 
required under Article VII, Section 22 of the Constitution;
4 
9. To present written proposals on projects and activities of the
5 
government entities whose budget is under deliberation; and
6 
10. Immediate access to stenographic notes and committee reports released
7 
by both Houses, including the bicameral conference committee report.
8 
The bicameral conference committee meetings and all other meetings
9 
related or associated thereto shall be recorded and be made accessible
10 
immediately to promote transparency and to allow members of both
11 
Houses to easily determine how conflicting provisions in the proposed
12 
national budget were reconciled or resolved prior to the submission
13 
thereof for ratification by both Houses of Congress.
14 
Sec. 9. Sectoral Representation. - To ensure inclusive and balanced
15 
participation, the accreditation and engagement of CSOs under this Act shall reflect
16 
sectoral diversity. At least thirty percent (30%) of accredited CSOs participating in the
17 
budget process at any level shall represent marginalized, disadvantaged, or
18 
underrepresented sectors, including but not limited to women, Indigenous Peoples,
19 
workers, youth, senior citizens, persons with disabilities, environmental groups, and
20 
consumer organizations.
21 
The DBM, in coordination with relevant oversight agencies and CSO networks,
22 
shall issue guidelines to operationalize sectoral representation and verify constituency
23 
legitimacy.
24 
Sec. 10. Alignment with Performance-Based Budgeting. - To promote
25 
transparency, accountability, and results-driven governance, the participation of CSOs
26 
under this Act shall be integrated into the framework of performance-based budgeting
27 
as implemented by the DBM.
28 
In line with this, all NGAs and GOCCs shall publicly disclose their performance
29 
ratings, including accomplishments measured against their Key Performance
30 
Indicators (KPIs), targets, and outcome indicators. These disclosures shall form part
31 
of the budget documents accessible to CSOs and the public.


1 
Accredited CSOs may examine, assess, and provide recommendations on the
2 
alignment of agency performance with proposed budgets.
3 
Sec. 11. Notice to CSOs. - Notice to CSOs may be sent through electronic mail,
4 
facsimile machine, postal mail, and by posting at the website of the NGA or GOCC
5 
concerned. Any of the said modes of sending notices shall be deemed compliance to
6 
the requirements under Section 7(a) of this Act.
7 
Sec. 12. Conflict of Interest. - It is the responsibility of the CSO to inform the
8 
NGA or GOCC of a conflict of interest in their work with the concerned agency, if and
9 
when such a situation arises.
10 
However, if the NGA or GOCC deems that the CSO has a conflict of interest with the
11 
work of such NGA or GOCC, the latter shall allow the applicant-CSO to explain and
12 
prove that the conflict of interest does not exist.
13 
Sec. 13. Canceiiation of Accreditation. - Upon receipt of a verified complaint in
14 
writing, which charges the holder of a certificate of accreditation of having procured
15 
their certificate of accreditation by fraud or deceit, the head of the NGA or GOCC shall
16 
notify and serve a copy of the complaint to the CSO concerned, who shall be given an
17 
opportunity to be heard.
18 
Inaction by the NGA or GOCC on the said complaint within twenty (20) working
19 
days from the receipt of such complaint shall be deemed a dismissal of the complaint
20 
against the CSO involved.
21 
Sec. 14. Non-Accredited CSOs. - Non-accredited CSOs may still participate in
22 
the budget process by submitting position papers for the consideration of the NGA or
23 
GOCC and by attending and observing public consultations. They may be invited to
24 
expound on their critique or proposals when said institutions deem it fit. Nothing in
25 
this Act shall be construed to deprive non-accredited CSOs of the rights, privileges,
26 
and incentives accorded to them by the Constitution, existing laws, executive orders,
27 
rules and regulations, and other issuances.
28 
Sec. 15. Public and Timely Disclosure of Budget Documents and Other Related
29 
Data. - For CSOs to participate in an informed manner, the NGA or GOCC shall post
30 
on their websites or other public posting areas, budget documents to which CSOs shall
31 
have access, as provided for under Section 7 of this Act.


1 
Nothing in this Act shall be construed to delay or impair compliance with the
2 
timeline and procedural requirements for the enactment of the General Appropriations
3 
Act.
4 
Sec. 16. Ethics and Accountability Framework. -The DBM shall prescribe the
5 
standard application form, minimum required information, and accompanying ethics
6 
and accountability requirements for CSO accreditation under this Act.
7 
As part of these requirements, the DBM shall develop, in consultation with CSO
8 
networks, a Code of Conduct for participating CSOs and establish a Grievance Redress
9 
Mechanism to address violations, abuse of participation, or ethical misconduct.
10 
Accredited CSOs shall commit to the Code of Conduct as a condition of
11 
participation. Breaches may result in suspension, revocation of accreditation, or
12 
blacklisting, subject to due process.
13 
Sec. 17. Penalties and Blacklisting. - Any CSO found to have secured
14 
accreditation through fraud, misrepresentation, or concealment of material
15 
information, or to be acting as a front or proxy for any political actor, government
16 
official, or government contractor or supplier, shall be subject to the following
17 
penalties:
18 
1. Immediate revocation of accreditation and disqualification from
19 
participation in the national budget process for a period of five (5) years;
20 
2. Inclusion in a national blacklist and red-flag database, to be maintained
21 
by the DBM, in coordination with relevant accrediting agencies and
22 
oversight bodies;
23 
3. Referral for investigation to appropriate authorities if there is evidence
24 
of violation of anti-graft, procurement, or other applicable laws.
25 
The following acts shall be grounds for blacklisting or red-flagging:
26 
a. Acting as a dummy or proxy organization for a government official,
27 
elected representative, political party, public utility, or business entity
28 
engaged in procurement contracts, joint ventures, franchises, among
29 
other privileges with the national government;
30 
b. Engaging in undue lobbying or influence-peddling for the benefit of a
31 
public official or agency;


1 
c. Receiving or funneling funds from government agencies, suppliers, or
2 
contractors that compromise the independence of the CSO;
3 
d. Failure to disclose relationships, contracts, or funding sources that
4 
present a conflict of interest.
5 
CSOs included in the blacklist may file a verified petition for delisting, subject
6 
to rules and evaluation procedures to be issued by the DBM.
7 
Sec. 18. Separability Clause. - If any provision of this Act shall be declared
8 
invalid or unconstitutional, the remaining part or provisions not otherwise affected
9 
shall remain in force.
10 
Sec. 19. Repealing Clause. - Any law, decree, ordinance, administrative circulars
11 
not consistent with any provision of this Act is hereby amended, repealed, or modified
12 
accordingly.
13 
Sec. 20. Effectivity Clause. -This Act shall take effect fifteen (15) days after its
14 
complete publication in the Official Gazette or in at least two (2) newspapers of general
15 
circulation.
Approved,