FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
OF THE PHILIPPINES 
) 
) 
9 JAN 27 P4 :0'7 
I 
Introduced by SENATOR LACSON 
EXPLANATORY NOTE 
The national budget is the primary economic and political tool of the government. 
The budget encompasses all aspects of governance - policies, political and social 
preferences, administrative reforms, delivery of services, etc. 
It reflects the 
government's sincerity and political will to achieve social and economic change. 
The budget process is without a doubt a very long and tedious process. But the 
vital role it plays in the operations of our government, and ultimately on the life of every 
Filipino, demands that there should be mechanisms in place that will enable citizens to 
participate in the budget process, whether in the national or local levels, 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 hidher citizenship 
through the power to directly influence the social and economic priorities for hislher 
community. It is high time that we encourage non-governmental organizations (NGOs) 
and people's organizations (POs) to focus their efforts into analyzing and scrutinizing 
the budget in order to steer the government into creating real development that is felt by 
the marginalized sectors. Philippine societies can learn from countries such as Brazil, 
South Africa and India, where mechanisms of citizens' participation in the budget 
process has become both law and tradition because it has improved the delivery of 
basic social services and improved many lives. 
In our own country, many civic society groups have already moved forward and 
gotten themselves involved in the budget process through their submission of proposed 
alternative budgets highlighting much needed appropriation for social services. In fact 
the efforts of these groups have made such a remarkable difference in the 2007 
General Appropriations Act, wherein there was an increase of P22.7 billion in additional 
proposals for Millennium Development Goal (MDG) related activities, and an approval of 
the P5.5 billion for social services, according to NEDAs MDG Report in 2007. 
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 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. Further, 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 POs and NGOs in the budget deliberation. 
We should now 
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. 
P 
FIL M.LACSON 
enafor 
!;g 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
Second Regular Session 
) 
SENATE 
Senate Bill No. 3620 
Introduced by SENATOR LACSON 
“AN ACT INSTITUTIONALIZING THE ACTIVE PARTICIPATION OF BONA FIDE 
PEOPLE’S ORGANIZATIONS and NON-GOVERNMENT ORGANIZATIONS 
IN THE ANNUAL NATIONAL BUDGET HEARINGS IN CONGRESS 
AND BUDGET DELIBERATIONS IN LOCAL GOVERNMENT UNITS, 
AND PROVIDING EFFECTIVE MECHANISMS THEREFORE” 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. - This act shall be known as the “Peop/e’s Participation in 
Budget Deliberations Acf“. 
Section 2. Declaration of Policy. - It is hereby declared the policy of the state to 
promote and respect the rights of non-governmental and people’s organizations to 
become effective partners in all aspects of social, political and economic decision- 
making so that they may protect and pursue their legitimate interests and aspirations as 
a people; and so that the country may realize genuine democracy and equitable 
development. 
For this purpose, the State shall guarantee the participation of people’s organizations 
and non-government organizations in the government budget process to ensure that the 
annual appropriations will be an instrument of development and reflective of national 
objectives, strategies and plans. 
Section 3. Definition of Terms. - For the purposes of this Act: 
a) Accreditation - refers to the process by which the Senate, House of 
Representatives and the local legislative bodies recognize the people’s 
organizations and non-government organizations in order to register and allow 
them to participate in budget deliberations: Provided, that registration of said 
applicant shall not confer juridical personality on the organization; 
b) Non-government organization - refers to independent private, non-stock and 
non-profit organizations formed primarily for social and economic development, 
are not engaged in partisan politics, and whose officers are not holding 
government positions; 
c) People’s organization - Section 15 of the 1987 Constitution defines people’s 
organizations as “bona fide organizations of citizens with demonstrated capacity 


to promote public interest and with identifiable leadership, membership and 
structure”. 
d) People’s Participation - refers to the active involvement of people’s 
organizations and non-government organizations in the government budget 
process from the formulation up to the monitoring of the annual budget to ensure 
that it is responsive to the needs of the people, especially the vulnerable sectors, 
including but not limited to providing inputs during budget deliberations and 
during oversight hearings on the budget. 
Section 4. Coverage. - All people’s organizations and non-government organizations 
with a reputable track record in participating and contributing to government‘s processes 
and activities, may be allowed to participate and play a significant role in the 
congressional and local annual budget deliberations as well as in budget monitoring 
hearings, provided they undergo the mandatory accreditation process and comply with 
the implementing rules and regulations issued by both Houses of Congress, pursuant to 
Section 10 of this Act. 
Both Houses of Congress shall, through the Senate President and the Speaker, 
allow the active participation of accredited POs and NGOs in the deliberation of the 
annual national budget by inviting their duly authorized representatives as resource 
persons, subject to such internal rules and regulations as the Senate and the House of 
Representatives or its concerned committee may provide. 
The Local Development Councils, headed by their Governors, Mayors or 
Barangay Captains shall also allow the active participation of the POs and NGOs in 
their annual budget deliberations, subject to the limitations provided by law, their 
respective ordinances, rules and regulations. 
Section 5. Application for Accreditation. - The application for accreditation shall be 
filed with the Office of the Secretary of the Senate, the Secretary General of the House 
of Representatives, or the Secretary of the Local Government Units, in the form 
prescribed by such offices for the purpose, with the following documents: 
a) Articles of Incorporation and By-laws of the applicant POs and NGOs; 
b) Certificate of Registration with the Securities and Exchange Commission (SEC) 
and concerned authoritylagency; 
c) Affidavit of Modus Operandi showing: 
i. The character of the organization 
ii. The purpose for which it was organized 
iii. The list of activities or projects for the past three (3) years, and 
iv. List of officers, directors, trustees and members. 
concerned office; and 
liabilities of the organization. 
Upon approval of the application by the Secretary of the Senate, the Secretary 
General of the House of Representatives or the Secretary of the Local Government 
Units, a certificate of accreditation shall be issued which shall be valid for three (3) 
years after its approval. 
Unless an applicant is given proper hearing and notice, no application for 
accreditation shall be disapproved. The decision of the Secretaries of the Senate or the 
House or the proper authority so designated by the concerned local government unit 
shall thus be rendered within ten (IO) working days from the filing of the application. 
d) Certificate of Good Track Record and Standing from the proper authority or 
e) Duly audited financial statements for the past three (3) years showing assets and 


Section 6. Qualifications and Responsibilities of the Representatives for 
Accredited People’s Organizations, NGOs, or Private I Civic Sector 
a. Qualifications - Nominated representatives of accredited people’s organizations, 
non-government organizations, or privatekivic sector groups should be members 
of the organization helshe is representing. The nominees may be members of 
sectoral or multi-sectoral groups. Said nominated representatives shall serve at 
the pleasure of the their accredited organization. 
b. Rights, roles and responsibilities of representatives - Nominatedlelected 
representatives 
of 
accredited 
people’s 
organizations, 
non-government 
organizations, or privatelcivil sector groups shall be allowed to participate during 
budget deliberations in the national down to municipal levels of government. 
They shall have access to documents pertinent to the budget discussions, the 
right to submit position papers, suggestions andlor recommendations, and 
observe the voting of the elected local and national representatives. 
Section 7. Privileges and Incentives - An accredited NGO or PO shall be entitled to 
the following privileges and incentives: 
a) Participate through its duly authorized representatives in any regular and 
consultative public meetings, hearings, conference, dialogues, debates or 
deliberations sponsored by the Senate and the House of Representatives including 
District and other local consultations in relation to the State’s annual budget; 
b) Submit its own alternative or proposed budget, or position paper with regard to 
the sector or organization it represents; 
c) Access to the copies of the bills, budget proposals, and other pertinent documents 
filed with or coming from both Houses of Congress and local government unit 
concerned, free of charge; and 
d) Present written proposals on the projects and activities of the government agency 
whose budget is under consideration. 
Nothing in this Act shall be construed to deprive NGOs or POs whether 
accredited or not, of their rights guaranteed by the Constitution, existing laws, executive 
orders, rules and regulations and other issuances. 
Section 8. Cancellation of Certificate of Accreditation and Suspension of 
Privileges of POs and NGOs - Upon a verified complaint in writing, charging the 
holder of a certificate of accreditation of having been guilty of unprofessional conduct, or 
having procured their certificate of accreditation by fraud or deceit, or for violating any 
provisions of this Act or its IRR, the Secretary of the Senate or the Secretary General of 
the House, or the LGU Secretary shall have the power to cancel the certificate of 
accreditation or suspend the privileges of the particular POs or NGOs, depending on the 
gravity of the offense committed. 
POs and NGOs whose accreditation have been suspended for any valid reason shall 
not be allowed to engage or participate in the Congressional and local annual budget 
deliberations in any 
No certificate shall be cancelled or suspended unless there has been proper notice and 
hearing by the proper authority. Inaction by the proper authority within fifteen (15) days 
shall be considered as a decision favorable to the NGOs or POs involved. 


Section 9. Implementing Rules and Regulations. - The Senate and the House of 
Representatives, in consultation with the Department of Interior and Local Government 
(DILG), the Department of Budget and Management (DBM), POs, NGOs, and other 
agencies deemed necessary to consult, shall issue the Implementing Rules and 
Regulations (IRR) within ninety (90) days after the approval of this act. 
Section I O .  Separability Clause. - If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions thereof. 
Section 11. Repealing Clause. - All laws, decrees, orders and issuances or portion 
thereof which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
Section 12. Effectivity. -This Act shall take effect fifteen (15) days after its publication 
in at least two (2) national newspapers of general circulation. 
Approved,