Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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 
Based on the 2021 Open Budget Survey, an independent and comparative 
survey conducted by the International Budget Partnership (IBP), while the Philippines 
scored 35 points over 100, it is still higher than the global average of 14 points in terms 
of “public participation” or “formal opportunities offered to the public for meaningful 
participation in the different stage of the budget process.”1 
Findings of the survey reveal that while the Philippines scored high in the audit 
phase of the budget (78 points out of 100), there are minimal opportunities for 
participatory budgeting during the formulation (33 points out of 100), approval (22 
points out of 100), and implementation (17 points out of 100).2 
Overall, the Philippines ranked 8th in the world in terms of Public Participation3 
but there is always room for growth and improvement. Strengthening the government’s 
efforts to promote participatory budgeting and inclusion of stakeholders in the process 
of allocating state resources will ensure transparency and accountability. A people-
oriented process of allocating resources will also ensure that it will be more responsive 
to the needs of the citizens and will lead to a more effective delivery of services.  
1 Open Budget Survey 2021, accessible at https://internationalbudget.org/sites/default/files/country-surveys-pdfs/2021/open-
budget-survey-philippines-2021-en.pdf (last accessed: August 2, 2022) 
2 Id. 
3 Open Budget Survey 2021 Rankings, accessible at https://internationalbudget.org/wp-content/uploads/2021_OBS_rankings.pdf 
(last accessed: August 2, 2022). 
March 29, 2023
11:03 am
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Thus, this bill contains the following features for the promotion of participatory 
budgeting: 
a) Establishes mechanisms for CSO participation in the preparation and
authorization of the annual General Appropriations Act, such as
participating as resource persons during hearings and other similar events,
observing during budget deliberations, among others;
b) Ensures access to budget-related documents, such as budget proposals,
issuances, and committee reports;
c) Provides opportunities to present proposed budget proposals and positions
on budgetary items, including during the budget deliberations; and
d) Enumerates the benefits and privileges of accredited CSOs participating in
the budgetary process, but guarantees that non-accredited CSOs shall still
participate in the budgetary process through the submission of position
papers and observance of public meetings, hearings, conferences, or other
similar dialogues in the preparation of the budget.
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ___ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
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: 
SECTION 1. Short Title. – This Act shall be known as the “People’s 
1 
Participation in the National Budget Process Act of 2022.” 
2 
3 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State 
4 
to 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 
10 
SEC. 3. Definition of Terms. – For purposes of this Act, the following terms 
11 
are defined as follows:  
12 
13 
a)
Accreditation refers to the registration process of CSOs with the National
14 
Government Agencies (NGAs) and Government Owned and Controlled
15 
Corporations (GOCCs), in order to allow them to participate in the preparation
16 
and authorization of the annual national budget;
17 
18 
b)
Accredited CSO refers to CSOs that have fulfilled the requirements in
19 
Section 5 of this Act;
20 
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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 
 
7 
d) 
Civil Society Organizations (CSOs) include, but is not limited to, non-
8 
government 
organizations 
(NGOs), 
cause-oriented 
groups, 
people’s 
9 
organizations, cooperatives, trade unions, professional associations, faith-
10 
based organizations, media groups, indigenous peoples’ movements, 
11 
foundations, and other citizen groups formed primarily for social and economic 
12 
development, which monitor government projects, engage in policy 
13 
discussions, and actively participate in collaborative activities with Government; 
14 
 
15 
e) 
Conflict of Interest refers to a situation where it may be reasonably 
16 
deduced that a CSO or any of its key officers may not act in the public interest 
17 
due to some private, pecuniary, or other personal considerations which prevent 
18 
an impartial or unbiased attitude towards their participation in the national 
19 
budget process;  
20 
 
21 
f) 
Government-Owned or Controlled Corporation refers to any agency 
22 
organized as a stock or non-stock corporation, vested with functions relating to 
23 
public needs whether governmental or proprietary in nature, and owned by the 
24 
Government of the Republic of the Philippines directly or through its 
25 
instrumentalities either wholly, or where applicable, as in the case of stock 
26 
corporations, to the extent of at least a majority of its outstanding capital stock; 
27 
and 
28 
 
29 
g) 
National Government Agency (NGA) refers to a unit of the National 
30 
Government, including the Judiciary, both Houses of Congress, and 
31 
Constitutional Offices.  
32 
 
33 
SEC. 4. Coverage. – This Act shall apply to all NGAs and GOCCs whose 
34 
budget is included in the annual General Appropriations Act.  
35 
 
 
36 
SEC. 5. Accreditation. – The application for accreditation for the Senate, the 
37 
House of Representatives, the Judiciary, and the Constitutional Offices shall be filed 
38 
at the Office of the Secretary, the Secretary-General, the Supreme Court Clerk of 
39 
Court, and the Office of the Chairman, respectively. The application for accreditation 
40 
for other NGAs and GOCCs may be filed at their respective regional or central office. 
41 
The application form shall be prescribed by each office and the application for 
42 
accreditation shall be accompanied by the following documents: 
43 
 
44 
a) 
Articles of Incorporation and By-Laws of the applicant CSO; 
45 
 
46 
b) 
Certificate of Registration and/or other similar documents, issued by an 
47 
appropriate government agency tasked to register civil society organizations, 
48 
such as, but not limited to, the Securities and Exchange Commission, Bureau 
49 


of Labor Relations, Housing and Land Use Regulatory Board, Insurance 
1 
Commission, and the Cooperative Development Authority; 
2 
 
3 
c) 
The list of officer/s, director/s, trustees, beneficial owner/s, and 
4 
members; 
5 
 
6 
d) 
Duly audited financial statements for the past three (3) years showing 
7 
the assets and liabilities of the organization; 
8 
 
9 
e) 
Full disclosure of the sources of funds; and 
10 
 
11 
f) 
Full disclosure of service contracts with other NGAs, CSO, private 
12 
corporations, other CSOs, and other engagements which may result in conflict 
13 
of interest. 
14 
 
15 
Upon approval of the application, the head of the concerned NGA or GOCC 
16 
shall issue the certificate of accreditation. This shall be valid for three (3) years 
17 
following its issuance, except for the certificate of accreditation issued by the Senate 
18 
and the House of Representatives, which shall be valid for the entire term of the 
19 
Congress under which such certificate of accreditation was issued. 
20 
 
21 
No application for accreditation shall be disapproved, except upon due notice 
22 
and hearing. The decision of the head of the concerned NGA or GOCC shall be 
23 
rendered within twenty (20) working days from the time of the filing of the application. 
24 
Failure to act on the application shall be deemed an automatic approval of the 
25 
application for accreditation of the concerned CSO, and the issuance of a certificate 
26 
of accreditation shall necessarily ensue. 
27 
 
28 
SEC. 6.  CSO Participation. – In the interest of transparency, CSO 
29 
participation shall be a component in the preparation and authorization of the annual 
30 
national budget. All NGAs and GOCCs shall be required to formulate and adopt 
31 
guidelines outlining the mechanism for the accreditation and active participation of the 
32 
CSOs in the preparation and authorization of the annual national budget.  
33 
 
34 
The DBM shall ensure that the NGA or GOCC has complied with the 
35 
abovementioned requirement. For this purpose, the DBM shall establish capacity-
36 
building mechanisms for NGAs and GOCCs and other initiatives for the effective 
37 
implementation of participatory budgeting involving CSOs with a view to improving 
38 
fiscal transparency and accountability in the budget process.  
39 
 
 
40 
Accredited CSOs, through their duly authorized representatives, shall, as far as 
41 
practicable, be allowed to participate as resource persons in the budget hearings to 
42 
be conducted by the appropriate Committees of the Senate and the House of 
43 
Representatives, subject to the guidelines to be issued by both Houses of Congress. 
44 
 
45 
Notwithstanding their participation in the budget hearings to be conducted by 
46 
the appropriate Committees of the Senate and the House of Representatives as 
47 
provided in the preceding paragraph, the Committee on Appropriations of the House 
48 
of Representatives and the Committee on Finance of the Senate shall schedule one 
49 
(1) hearing day for the presentation of the positions of accredited CSOs on the budget.  
50 


 
1 
SEC. 7. Privileges and Incentives. – An accredited CSO shall enjoy the 
2 
following privileges and incentives: 
3 
 
4 
a) 
To have the same participation rights accorded to NGOs in the Local 
5 
Development Councils pursuant to the provisions of Republic Act No. 7160, 
6 
otherwise known as the “Local Government Code of 1991” in setting the 
7 
direction of economic, social and other coordinating development efforts in the 
8 
national level;  
9 
 
10 
b) 
To receive notices and participate as resource persons, through its duly 
11 
authorized representatives, in any regular and consultative public meetings, 
12 
hearings, conferences, and dialogues on matters related to the preparation and 
13 
authorization of the annual national budget, subject to the guidelines as may be 
14 
issued by each House of Congress; 
15 
 
16 
c) 
To be allowed to attend and observe the budget deliberations; 
17 
 
18 
d) 
To have access to copies of the budget proposals submitted by the 
19 
NGAs or GOCCs to the DBM, subject to applicable guidelines on privilege 
20 
information and/or freedom of information; 
21 
 
22 
e) 
To provide position papers to the DBM on the budget proposal of NGAs 
23 
or GOCCs submitted pursuant to the budget call; 
24 
 
25 
f) 
To present and submit its own alternative or proposed budget or position 
26 
paper;  
27 
 
28 
g) 
To have access to issuances such as, but not limited to, policy orders, 
29 
circulars and memoranda that are related to the budget; 
30 
 
31 
h) 
To have access to the documents prepared by the DBM for submission 
32 
to Congress as a basis for the General Appropriations Bill required under Article 
33 
VII, Section 22 of the Constitution; 
34 
 
35 
i) 
To present written proposals on projects and activities of the government 
36 
entities whose budget is under deliberation; and 
37 
 
38 
j) 
To have immediate access to stenographic notes and committee reports 
39 
released by both Houses, including the bicameral conference committee report, 
40 
subject to such guidelines as may be set by each House of Congress.  
41 
 
42 
SEC. 8. Notice to CSOs. – Notice to accredited CSOs under Sections 7(a) and 
43 
(b) of this Act may be sent through electronic mail, facsimile transmission, postal mail, 
44 
and by posting at the website of the NGA or GOCC concerned.  
45 
 
46 
SEC. 9. Conflict of Interest. – It is the responsibility of the CSO to inform the 
47 
NGA or GOCC of a conflict of interest in their work with the concerned agency, if and 
48 
when such situation arises. 
49 
 
50 


However, if the NGA or GOCC deems that the CSO has a conflict of interest 
1 
with the work of such NGA or GOCC, the latter shall give the applicant-CSO an 
2 
opportunity to explain and prove that the conflict of interest does not exist, in 
3 
compliance with Section 5 of this Act.  
4 
 
5 
SEC. 10. Cancellation of Accreditation. – Upon receipt of a verified complaint 
6 
in writing, which charges the holder of a certificate of accreditation of having procured 
7 
their certificate of accreditation by fraud or deceit, or in view of undisclosed conflict of 
8 
interest, the head of the NGA or GOCC shall notify and serve a copy of the complaint 
9 
to the CSO concerned, who shall be given an opportunity to be heard. 
10 
 
11 
Inaction by the NGA or GOCC on the said complaint within twenty (20) working 
12 
days from the receipt of such complaint shall be deemed a dismissal of the complaint 
13 
against the CSO involved.  
14 
 
15 
SEC. 11. Non-Accredited CSOs. – Non-accredited CSOs shall still have the 
16 
option to participate in the budget process by submitting position papers for the 
17 
consideration of the NGA or GOCC, and by attending and observing in any regular 
18 
and consultative public meetings, hearings, conferences, and dialogues on matters 
19 
related to the preparation and authorization of the annual national budget. If 
20 
necessary, non-accredited CSOs may be invited to expound on their critique or 
21 
proposals.  
22 
 
23 
Nothing in this Act shall be construed to deprive non-accredited CSOs the 
24 
rights, privileges and incentives accorded to them by the Constitution, existing laws, 
25 
executive orders, rules and regulations and other issuances. 
26 
 
27 
SEC. 12. Public and Timely Disclosure of Budget Documents and Other 
28 
Related Data. – In order for CSOs to participate in an informed manner, the NGA or 
29 
GOCC shall post on their websites or other public posting areas, budget documents 
30 
to which CSOs shall have access pursuant to Section 7 of this Act.  
31 
 
32 
SEC. 13. Separability Clause. – If any provision or part hereof is held invalid 
33 
or unconstitutional, the remainder of the law or the provision not otherwise affected 
34 
shall remain valid and subsisting. 
35 
 
36 
SEC. 14. Repealing Clause. – Any law, presidential decree or issuance, 
37 
executive order, letter of instruction, administrative order, rule or regulation contrary to 
38 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
39 
accordingly.  
40 
 
 
41 
SEC. 15. Effectivity Clause. – This Act shall take effect fifteen (15) days after 
42 
its publication in the Official Gazette or in at least two (2) newspapers of general 
43 
circulation. 
44 
 
45 
Approved,
46