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'14 SEP-3 P3:40 
Sixte'!nth Congress of the 
Repu&lic of the Philippines 
Secon'd Regular Session 
SENATE 
S.B. No. 2388 
Introduced by SENATOR TEOFISTO "TG" GUIN(:jONA III 
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AN ACT INSTITUTIONALIZING GRASSROOTS PARTICIPAtORY BUDGETING 
IN THE PLANNING AND IDENTIFICATION OF PROGRA~S AND PROJECTS 
TO BE FUNDED BY THE ANNUAL GENERAL APPROPRIATIONS ACT 
EXPLANATORY NOTE 
Differ~nt proposals to ensure that public funds will be spent withionly the people's welfare in 
mind Ihave been put forward recently, following the public outrage at how governmeht funds 
were '~sed not for the benefit of the citizenry, but of a few individu~ls. 
Whil~ reforms to limit discretion ih the use of public funds ~ave been pursued by the 
gover,hmeht in recent years, much is left to be done. 
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We t~ke the reforms a step further by institutionalizing Grassr,?ots Participatory Budgeting 
(GPB)~ an approach in planning government expenditures :by involving Civil Society 
Organizations (CSOs) in the idehtification and planhing of progratns ahd projects that will be 
fundEjd by the annual General Appropriations Act (GAA). By allowirg the active participation of 
CSOs lin planning and budgetihg, it can be ensured that the annual appropriations of National 
Gove\nrilent Agencies (NGAs) will be responsive to local objectives, strategies and plans and be 
truly an instrument of development. 
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The i~stitutionalization of Grassroots Participatory Budgeting is a ,big step that we can take to 
oper~tionalize the Aquino administration's slogan: Kung walang !corrupt, wa/ang mahirap as 
it addresses the challenges of improving service delivery, increasing government integrity and 
manalling public resources more effectively. 
The irrmediate enactment of this measure is sought. 


~l'mttl' 
Sixteenth Congress ofthe 
Republif: of the Philippines 
Second Regular Session 
{l9ff", elf "I.~rr"t.,¥ 
SENATE 
S.B. No. 2388 
'14 
SEP -3 P 3 :40 
RE('EIVED Hy:----f~ 
Introduced by SENATOR TEOFISTO "TG" GUINGONA III 
AN ACT INSTITUTIONALIZING GRASSROOTS PARTICIPATORY BUDGETING 
IN THE PLANNING AND IDENTIFICATION OF PROGHAMS AND PROJECTS 
TO BE fUNDED BY THE ANNUAL GENERAL APPROPRIATIONS ACT 
Be it en,f;tcted by the Senate and Hause of Representatives of the Philippines in Congress 
assembled: 
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SECTjO~ 1. Short Title. - This Act shall be known as the "Grassroots Participatory Budgeting Act 
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I of 20141 
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SECTiON 2. Declaration of Policy. - In pursuit of inclusive growth and poverty reduction, it is 
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hereby i declared the policy of the State to institutionalize transparency, accouhtability and 
citizen's participation in governance. 
To ens~re that the annual appropriations of National Government Agencies (NGAs) will be an 
instrurrlent of development and reflective of local objectives, strategies and plans, the State 
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shall ensure the involvement of Civil Society Organizations (CSOs) by institutionalizing 
Grassrdots Participatory Budgeting in the identification and planning of programs and projects 
that will be funded by the General Appropriations Act (GAA). 
SECTION 3. Definition of Terms. For purposes of this Act, the following terms shall have the 
followi~g definition: 
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3.1. Gr~ssroots Participatory Budgeting (GPB) - an approach to preparing the budget proposals 
of agerjcies, taking into consideration the development needs of municipalities and cities as 
identified in their respective local development plan and/or local anti-poverty action plan that 
shall bJ formulated with strong participation of basic sector organizations and other CSOs. 
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3.2. Civil Society Organizations (CSOs) - Include non-government organizations (NGOs), people's 
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organizations, cooperatives, trade unions, professional associations, faith-based organizations, 
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media groups, indigenous peoples movements, foundations, and other citizen groups formed 
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primarily for social and economic development, to monitor government programs and projects, 
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engage! in policy discussions, and actively participate in collaborative activities with the 
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Government. 
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3.3. Citizen Participation - A democratic process involving people empowerment, whereby 
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'concemed citizens organized as CSOs, pursue their legitimate and collective interests by, among 
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others, monitoring the effectiveness of Programs and Projects (PAPs) and in so doing become 
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I partners ofthe Government in governance. 
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3.4. Loc.al Poverty Reduction Action Plan (LPRAP)/ Local Development Action Plan (LDAP) - the 
Local Gbvernment Unit (LGU) plan which contains programs and projects collectively drawn 
througl"( a participatory process by the LGUs with C50s and other stakeholders, and which will . 
directlY'iaddress the needs of the poor constituencies and the marginalized sectors in the city or 
municipality. 
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3.5. Lod,alPoverty Reduction Action Team (LPRAT)/ Local Development Action Team (LDAT) -
the group to spearhead the formulation and monitoring of the LPRAP/LDAP composed of the 
followirlg: 
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Chairperson: Local Chief Executive (LCE) 
~o-Chairperson: A CSO Representative 
Members: 
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Representatives from the LGU, to wit: 
Sangguniang Panglungsod/Bayan Member who is the chairperson ofthe 
Committee on Appropriation; 
All local government department heads such as the Planning Office, 
Budget Officer, Agriculture Officer, Social Welfare and Development 
Officer and Health Officer; 
Representatives of National Government Agencies (NGAs) such as 
Department of Social Welfare and Development (DSWD) Municipal Links, 
PESO Manager and the Department of Interior and Local Government 
(DILG) City/Municipal Local Government Operations Officer, the School 
District Supervisor and Agrarian Reform Officer; and 
Representatives from C50s (who must be residents of the city or municipality), 
to wit: 
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A Pantawid Pamilya Parent-Leader; 
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A Leader from Department of Health (DoH) organized Community Health 
Teams; 
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A Leader of Parent- Teacher Associations; 
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A Leader of CSOs accredited or recognized by any NGA; 
A leader of women's groups; 
A leader of basic sector organizations; 
A leader of other community or grassroots organizations; and 
A representative from the business sector. 
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The LPRAT shall be composed of an equal number of government representatives and non-
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government representatives. It should also be composed of at least 30 percent women. 
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3.6. In the event that the sectors indicated are not organized, the LGU, in coordination with 
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CSOs an'd concerned national government agencies, shall initiate and support the organization 
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ofthe basic sectors identified. The sectors will be made to undergo the same accreditation 
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process,as the CSOs for inclusion in the LPRAT. 
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3.7. LPR'AT Powers and Functions: 
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a. 
I,dentify priority poverty reduction projects through a consensus among its members. In 
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the absence of a consensus, the decision will be made through a majority vote; 
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b. Develop and formulate the Local Poverty Reduction Action Plan (LPRAP) based on the 
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Identified priority poverty reduction projects from a list issued by the DBM and 
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following the process and guidelines to be provided by in the Implementing Rules and 
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~egulations; 
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tonduct public consultations, when necessary, to ensure that the projects to be 
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embodied in the LPRAP reflect an actual need in the community; 
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d. Submit the LPRAP to the RPRAT for validation; 
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e. participate in the budget deliberation process ofthe Local Development Council. 
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. 3.8. Regional Poverty Reduction Action Teams (RPRATs)/ Regional Development Action Teams 
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(RDATs) - the group that shall provide support and guidance to LGUs through the GPB process 
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and mo'nitor the implementation of the GPB projects, composed of the follOWing: 
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Chairperson: DILG Regional Director 
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Vice Chairperson: Department of Budget and Management (DBM) Regional 
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Director 
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Members: 
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Regional Directors of NGAs 
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Regional Director of the National Economic Development Authority (NEDA) 
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Two CSO representatives per province as identified by National Anti Poverty 
Commission (NAPC) 
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SECTION 4. Role of LGUs and NGAs. 
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All LGUs and NGAs shall be required. to formulate and adopt guidelines outlining the 
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mechanism for the accreditation and active participation of the C50s. 
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To ensure that the LPRAP/LDAP is truly reflective of needs of the community, LGUs must ensure 
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that CSOs are involved throughout the GPB process and shall coordinate with the concerned 
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NGAs in preparing work and financial plans and other documents as required. 
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I Departments/Agencies shall ensure complementation between national and LGU projects by 
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closely toordinating with LPRATs/LDATs. In accordance to GPB gUidelines issued previously by 
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I the DBM, the validated/ qualified LGU projects shall be integrated in the agency budget 
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propos~1. Disclosure shall be made on the proposed LGU counterpart funds, if any. 
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Agencies through their regional and/ or provincial offices shall inform concerned LGU regarding 
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the acceptance and approval of the budget for the implementation of GPB identified projects 
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and fadlitate the compliance by LGUs with the requirements for the implementation. 
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·SECTIO~ 5. Role of CSOs - In the interest of community ownership and transparency, CSO 
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particip~tion shall be a component in the planning, identification and monitoring of projects 
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and prqgrams that shall be funded by the annual National Budget. 
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A locally accredited CSO may spearhead the implementation of identified projects at the 
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barang$Y level, provided that they have prior experience in implementing projects through a 
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Community Driven Development (CDD) approach. Specifically, these CSOs must have prior 
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experie,nce in undertaking community led procurement and in community monitoring of 
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projectiimplementation using participatory processes of information disclosure. 
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SECTION 6. Public and Timely Disclosure of Budget Documents other Related Data. - In order 
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for CSos to participate in an informed manner, the lGU/NGA/ GOCC shall post on their web 
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sites or other public posting areas, LPRAP and budget documents to which C50s shall have 
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access. 
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SECTlqN 7. Separability Clause. - If any provision of this Act is declared unconstitutional, the 
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same shall not affect the validity and effectivity of the other provisions hereof. 
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SECTION 8. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, 
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issuances or any part thereof inconsistent with the provisions of this Act are hereby repealed or 
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amende:d accordingly. 
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SECTION 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at 
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least twp (2) national newspapers of general circulation. 
ApprovEid 
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