EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session
SENATE
Senate Bill No. 24
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•19 
JUL -1 WO ••49
Introduced by SENATOR LACSON
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AN ACT INSTITUTIONALIZING THE PARTICIPATION OF CIVIL 
SOCIETY ORGANIZATIONS (CSOs) IN THE PREPARATION a N D  
AUTHORIZATION PROCESS OF THE ANNUAL NATIONAL BUDGET 
PROVIDING EFFECTIVE MECHANISMS THEREFORE, 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 
reflects 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 eveiy 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 efforts 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 influencing 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 crafling 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.
sought.
In view of the foregoing, the immediate enactment of this bill is earnestly
PANFltyO M. LACSON
Inator


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EIGHTEENTH CONGRESS OF THE REPUBLIC 
} 
OF THE PHILIPPINES 
First Regular Session
}
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SENATE
Senate Bill No. 24
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19 
JUL -1 AlO ••49
Introduced by SENATOR LACSON
AN ACT INSTITUTIONALIZING THE PARTICIPATION OF CIVI1> 
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:
SECTION 1. 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. It is hereby declared the policy of the 
State to facilitate tlie 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.
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SECTION 3. Definition of Terms. For purposes of this Act, the following
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terms are defined as follows:
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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 CSOs that have fulfilled the requirements 
in Section 5 of this Act.
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 eitizen groups formed primarily for social and economic


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development, which monitor government projects, engage in policy
discussions, and actively participate in collaborative activities witli 
Government.
e) ‘Conflict of Interest” - refers to a condition which occurs when a CSO or 
any of its key officers are involved in multiple interests which prevents an 
impartial or unbiased attitude towards their participation in the national 
budget process.
f) 
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.
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 instiumentalities 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.
h) “National Government Agency (NGA)” - refers to a unit of the National 
Government, including the Judiciary, both Houses of Congress, and 
Constitutional Offices.
i) “Participatory Mechanisms” - refer to the means by which CSOs can 
participate meaningfully and effectively in the government process of 
formulating and authorizing an annual national budget that is responsive to 
the needs of the different sectors in our society.
SECTION 4. Coverage. This Act shall apply to all NGAs and GOCCs 
whose budget is included in the Annual General Appropriations Act.
SECTION. 5. Accreditation. The application for accreditation for the 
Senate, the House of Representatives, the Judiciaiy. and the Constitutional Offices 
shall be filed at the Office of the Secretaiy, the Secretary-General, the Supreme 
Court Clerk of Court, and the Oftice 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 fonn 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 Regulatoiy 
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


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f. 
Full disclosure of service contracts with other NGAs, CSO, private 
corporations, other CSOs, and other engagements which may result in conflict of 
interest.
Upon approval of the application, the head of the concerned NGA or GOCC 
shall issue the certificate of accreditation. Tliis shall be valid for three (3) years 
following its issuance except for the certificate of accreditation issued by the 
Senate and the House of Representatives, which shall be valid for the entire term 
of the Congress under which such certificate of accreditation was issued.
No application for accreditation shall be disapproved, except upon due notice 
and hearing. The decision of the head of the concerned NGA or GOCC shall be 
rendered within twenty (20) working days from the time of the filing of the 
application. Failure to act on the application shall be deemed an automatic 
approval of the application for accreditation of the concerned CSO, and the 
issuance of a certificate of accreditation shall necessarily ensue.
SECTION 6. CSO Participation. In the interest of transparency, CSO 
participation shall be a component in the preparation and authorization of the 
annual national budget. All NGAs and GOCCs shall be required to formulate and 
adopt guidelines outlining the mechanism for the accreditation and active 
participation of the CSOs in the preparation and authorization of tlie annual 
national budget.
The DBM shall ensure that the NGA or GOCC has complied with the above 
mentioned requirement.
Accredited CSOs, through their duly authorized representatives, shall be 
allowed to participate as resource persons in the budget hearings to be conducted 
by the appropriate Committees of each House of Congress, provided that they 
comply with the guidelines to be issued by both Flouses of Congress.
Notwithstanding their participation in the budget hearings to be conducted by 
the appropriate Committees of each House of Congress as provided in the 
preceding paragraph, the Committee on Appropriations of the House of 
Representatives and the Committee on Finance of the Senate shall schedule one 
hearing day for the presentation of the positions of accredited CSOs on the budget.
SECTION 7. Privileges And Incentives. An accredited CSO shall enjoy the 
following privileges and incentives:
a) To have similar participation rights accorded to NGOs in the Local 
Development Councils pursuant to the provisions of RA No. 7160 otherwise 
known as the “Local Government Code of 1991” in setting the direction of 
economic, social and other coordinating development efforts in the national 
level;
b) To receive notices and participate as resource person through its duly
authorized representatives in any regular and consultative public meetings,
hearings, conferences, and dialogues on matters related to the preparation 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 
conference;
d) Access to copies of the budget proposals submitted by the NGAs or GOCCs to 
the DBM;
e) To provide position papers to the DBM on the budget proposal of NGAs or 
GOCCs submitted pursuant to the budget call;
f) To submit its own alternative or proposed budget or position paper;
g) Access to issuances such as, but not limited to policy orders, circulars and 
memoranda that are related to the budget;
h) Access to the documents prepared by the DBM for submission to Congress by 
the President as a basis for the General Appropriations Bill required under 
Article VII, Section 22 of the Constitution;
i) To present written proposals on projects and activities of the government 
entities whose budget is under deliberation; and.
j) Immediate access to stenographic notes and committee reports released by 
both Houses including the bicameral conference committee report. Tlie 
bicameral conference committee meetings and all other meetings related or 
associated thereto shall be recorded and be made accessible immediately to 
promote transparency and to allow members of both Houses to easily 
determine how conflicting provisions in the proposed national budget were 
reconciled or resolved prior to the submission thereof for ratification by both 
Houses of Congress.
SECTION. 8. Notice to CSOs. - Notice to CSOs may be sent through 
electronic mail, facsimile machine, postal mail, and by posting at the website of 
the NGA or GOCC concerned. Any of the said modes of sending notices shall be 
deemed compliance to the requirements under Section 7(a) of this Act.
SECTION. 9. Conflict of Interest. It is the responsibility of the CSO to 
inform the NGA or GOCC of a conflict of interest in their work with the 
concerned agency, if and when such situation arises.
However, if the NGA or GOCC deems that the CSO has a conflict of interest 
with the work of such NGA or GOCC, the latter shall give the applicant-CSO an 
opportunity to explain and prove that the conflict of interest does not exists.
SECTION. 10. Cancellation of Accreditation. Upon receipt of a verified 
complaint in writing, which charges the holder of a certificate of accreditation of 
having procured their certificate of accreditation by fraud or deceit, the head of the 
NGA or GOCC shall notify and seiv'e a copy of the complaint to the CSO 
concerned, who shall be given an opportunity to be heard.
Inaction by the NGA or GOCC on the said complaint within twenty (20) 
working days from the receipt of such complaint shall be deemed a dismissal of 
the complaint against the CSO involved.


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SECTION 11. Non-Accredited CSOs. Non-accredited CSOs may still 
participate in tlie budget process by submitting position papers for the 
consideration of the NGA or GOCC and by attending and obsei-ving public 
consultations. They may be invited to expound on their critique or proposals when 
said institutions deem it fit. Nothing in this Act shall be construed to deprive non- 
accredited CSOs the rights, privileges and incentives accorded to them by the
Constitution, existing laws, executive orders, rules and regulations and other 
issuances.
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SECTION 12. Public and Timely Disclosure of Budget Documents and 
Other Related Data. In order for CSOs to participate in an informed manner, the 
NGA or GOCC shall post on their websites or other public posting areas, budget
documents to which CSOs shall have aceess, as provided for under Section 7 of 
this Act.
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SECTION 13. Separability Clause. If any provision of this Act shall be 
declared invalid or unconstitutional, the remaining part or provisions not otherwise 
affected shall remain in force.
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SECTION 
14. 
Repealing 
Clause. 
Any 
law, 
decree, 
ordinance, 
administrative circulars not consistent with any provision of this Act is hereby 
amended, repealed or modified accordingly.
SECTION 15. Effectivity Clause. This Act shall take effect fifteen (15) 
days after its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation.
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Approved,