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FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
First Regular Session 
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S. No. 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 11, Section 27 provides: 
The State shall maintain honesty and integrity in the public service and 
take positive and effective measures against graft and corruption. 
Waste and inefficiency in various governmental programs undermine the confidence of 
the people in the government and reduces the government’s ability to address adequately vital 
public needs. 
Public officials are seriously disadvantaged in their efforts to improve program efficiency 
and effectiveness because of insufficient articulation of program goals and inadequate 
information on program performance, while congressional policymaking, spending decisions and 
program oversight are seriously handicapped by insufficient attention to program performance 
and results. 
In order to improve governmental program effectiveness and restore the confidence of the 
people in the capability of the government, this bill seeks to systematically hold government 
agencies accountable for achieving program results, by providing for the establishment, testing 
and evaluation of strategic planning and performance measurement in the government.* 
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This bill was re-filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROVIDING FOR THE ESTABLISHMENT, TESTING, AND EVALUATION OF 
STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT IN THE 
GOVERNMENT 
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 “Government Performance 
and Results Act of 2007.” 
SECTION 2. Purposes. - It is the purpose of this Act to - 
(A)Improve the confidence of the people in the capability of the government, by 
systematically holding agencies accountable for achieving program results; 
(B) Initiate program performance reform with a series of pilot projects in setting program 
goals, measuring program performance against those goals, and reporting publicly on 
their progress; 
(C) Improve program effectiveness and public accountability by promoting a new focus 
on results, service quality, and customer satisfaction; 
(D)Help managers improve service delivery, by requiring that they plan for meeting 
program objectives and by providing them with information about program results 
and service quality; and 
(E) Improve congressional decision-making by providing more objective information on 
achieving statutory objectives, and on the relative effectiveness and efficiency of 
programs and spending. 
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SECTION 3. Definition of Terms. -For purposes of this Act, the term: 
(A)“Outcome measure” refers to an assessment of the results of a program activity 
compared to its intended purpose; 
(B) “Output measure” refers to the tabulation, calculation, or recording of activity or 
effort and can be expressed in a quantitative or qualitative manner; 
(C)“Performance goal” means a target level of performance expressed as a tangible, 
measurable objective, against which actual achievement shall be compared, including 
a goal expressed as a quantitative standard, value, or rate; 
@)“Performance indicator” refers to a particular value or characteristic used to measure 
output or outcome; 
(E) “Program activity” means a specific activity or project as listed in the program and 
financing schedules of the annual budget of the government; and 
(F) “Program evaluation” means an assessment, through objective measurement and 
systematic analysis, of the manner and extent to which governmental programs 
achieve intended objectives. 
SECTION 4. Strategic Planning. - 
(A) The head of each agency shall submit to the Department of Budget and Management 
a strategic plan for program activities. Such plan shall contain -- 
(1) A comprehensive mission statement covering the major functions and 
operations of agency; 
(2) General goals and objectives, including outcome-related goals and objectives, 
for the major functions and operations of the agency; 
(3) A description ofhow the goals and objectives are to be achieved; 
(4) A description of how the performance goals shall be related to the general 
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goals and objectives in the spategic plan; 
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(5) An identification of those key factors external to the agency and beyond its 
control that could significantly affect the achievement of the general goals and 
objectives; and 
(6) A description of the program evaluations used in establishing or revising 
general goals and objectives, with a schedule for future program evaluations. 
(B) The strategic plan shall cover a period of not less than five years forward from the 
fiscal year in which it is submitted, and shall be updated and revised at least every three years. 
(C) When developing a strategic plan, the agency shall consult with the Congress, and 
shall solicit and consider the views and suggestions of those entities potentially affected by or 
interested in such aplan. 
(D) For purposes of this section the term ‘agency’ means an Executive agency 
SECTION 5. Annual Performance Plans and Reports. - 
(A) In carrying out the provisions of section, the Department of Budget and Management 
shall require each agency to prepare an annual performance plan covering each program activity 
set forth in the budget o f  such agency. Such plan shall - 
(1) Establish performance goals to define the level of performance to be achieved 
by a program activity; 
(2) Express such goals in an objective, quantifiable, and measurable form unless 
permitted an alternative forni under paragraph (B); 
(3) Establish performance indicators to be used in measuring or assessing the 
relevant outputs, service levels, and outcomes of each program activity; 
(4) Provide a basis for comparing actual program results with the established 
performance goals; and 
(5) Describe the means to be used to verify and validate measured values. 
(B) If an agency, in consultation with the Department, determines that it is not feasible to 
express the performance goals for a particular program activity in an objective and quantifiable 
form, the Department may authorize an alternative form. Such alternative form shall -- 
(1) Include separate descriptive statements of - 
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(a) A minimally effective program, and 
(b) A successful program, with sufficient precision and in such terms that 
would allow for an accurate, independent determination of whether the 
program activity performance meets the criteria of either description; 
or 
(2) State why it is infeasible or impractical to express a performance goal in any 
form for the program activity. 
(C) In preparing a comprehensive and informative plan under this section, an agency may 
aggregate, disaggregate, or consolidate program activities, provided that any aggregation or 
consolidation does not omit or minimize the significance of any program activity constituting a 
major function or operation for the agency. 
(0) An agency may prepare a classified or non-public annex to its plan covering program 
activities or parts of program activities relating to - 
(1) National security; 
(2) The conduct of foreign affairs; or 
(3) The avoidance of interference with criminal prosecution or revenue collection 
SECTION 6. Program Performance Reports. - 
(A) No later than 31 March of the year following the promulgation of this Act, and no 
later than March 31 of each year thereafter, the head of each agency shall prepare and submit to 
the President and the Congress, a report on program performance for the previous fiscal year. 
(B) Each program performance report shall set fourth the performance indicators 
established in the departmental or agency performance plan, along with the actual program 
performance achieved compared with the performance goals expressed in the plan for that fiscal 
year. 
(C) Each report shall - 
(1) Review the success of achieving the performance goals of the fiscal year; 
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(2) Evaluate the performance plan for the current fiscal year relative to the 
performance achieved towards the performance goals in the fiscal year 
covered by the report; 
(3) Explain and describe, where a performance goal has not been met, including 
when a program activity’s performance is determined not to have met the 
criteria of a successful program activity - 
(a) Why the goal was not met; 
(b) Those plans and schedules for achieving the established performance 
goal; and 
(c) If the performance goal is impractical or infeasible, why that is the 
case and what action is recommended; 
(4) Describe the use and assess the effectiveness in achieving performance goals 
of any waiver under this title; and 
(5) Include the summary findings of those program evaluations completed during 
the fiscal year covered by the report. 
(EJ The agency head may include all program performance information required annually 
under this section in annual financial statement if any such statement is submitted to the 
Congress no later than March 3 1 of the applicable fiscal year. 
SECTION I. Managerial Accountability and Flexibility. - 
(A) Beginning with the fiscal year following the passage of this Act, the performance 
plans required under Section 5 may include proposals to waive administrative procedural 
requirements and controls. In preparing and submitting the performance plan, the Department o f  
Budget and Management shall review and may approve any proposed waivers. A waiver shall 
take effect at the beginning of the fiscal year for which the waiver is approved. 
(B) Any such proposal under paragaph (A) shall describe the anticipated effects on 
performance resulting from greater managerial or organizational flexibility, discretion, and 
authority, and shall quantify the expected improvements in performance resulting from any 
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waiver. The expected improvements shall be compared to current actual performance, and to the 
projected level of performance that would be achieved independent of any waiver. 
(C) Any proposal waiving limitations on compensation or remuneration shall precisely 
express the monetary change in compensatiorl or remuneration amounts, such as bonuses or 
awards, that shall result from meeting, exceeding, or failing to meet performance goals. 
(D) A waiver shall be in effect for one (1) or two (2) years. A waiver may be renewed for 
a subsequent year. After a year has been in effect for three consecutive years, the performance 
plan prepared under Section 5 may propose that a waiver, other than a waiver of limitations on 
compensation or remuneration, be made permanent. 
SECTION 8. Pilot Projects. - 
(A)The secretary of Department of Budget and Management, after consultation with the 
head of each agency, shall designate not less than ten (10) agencies as pilot projects in 
performance measurement for the first three fiscal years after the promulgation of this Act. The 
selected agencies shall reflect a representative range of government functions and capabilities in 
measuring and reporting program performance. 
(B) Pilot projects in the designated agencies shall undertake the preparation of 
performance plans under Section 5, and program performance reports under Section 6, other than 
Section 6(C), for one or more of the major hctions and operations of the agency. A strategic 
plan shall be used when preparing agency performance plans during one (1) or more years of the 
pilot period. 
(C) The secretary shall submit a report to the President and to the Congress which shall - 
(1) Assess the benefits, costs, and usefulness of the plans and reports prepared by 
the pilot agencies in meeting the purposes of this Act; 
(2) Identify any significant difficulties experienced by the pilot agencies in 
preparing plans and reports; and 
(3) Set forth any recommended changes in the requirements of the provisions of 
this Act. 
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SECTION 9. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the reminder of the law of the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 
SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,