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THIRTEENTH CONGRESS OF THE REPUBLIC) 
BUG -3 P32.1 
OF THE PHILIPPINES 
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v- ,:'I;,>! 
First Regular -. Session 
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p!?.ECE\VED BY 
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SENATE 
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S.B. No. 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, 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 insufficient articulation of program goals and inadequate information 
on program p erformance, while c ongressional p olicymaking, 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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TlJTEENTI 
3RESS OF THE RE 
OF THE PHILIPPINES 
First Regular Session 
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Jnkoduced 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 ongress 
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assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Government Performance 
and Results Act.” 
SECTION 2. Purposes. -It is the purpose of this Act to - 
(1) Improve the confidence of the people in the capability of the government, by 
systematically holding agencies accountable for achieving program results; 
(2) 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; 
(3) Improve program effectiveness and public accountability by promoting a new 
focus results, service quality, and customer satisfaction; 
(4) Help managers improve service delivery, by requiring that they plan for 
meeting proc& objectives and by providing them with information about program results and 
service quality; and 
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(5) Improve congressional decision-making by providing more objective 
information on achieving statutory objectives, and on the relative effectiveness and efficiency of 
programs and spending. 


SECTION 3. DeJinition. - For purposes of this Act: 
(1) ‘outcome measure’ refers to an assessment of the results of a program activity 
compared to its intended purpose; 
(2) ‘output measure’ refers to the tabulation, calculation, or recording of activity 
or effort and can be expressed in a quantitative or qualitative manner; 
(3) ‘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; 
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(4) ‘ performance indicator’ refers to a p articular v alue o r characteristic u sed to 
measure output or outcome; 
(5) ‘program activity’ means a specific activity or project as listed in the program 
(6) ‘program evaluation‘ means an assessment, through objective 
and systematic analysis, of the manner and extent to which governmental 
and financing schedules of the annual budget of the government; and 
intended objectives. 
SECTION 4. Strategic planning. - 
(1) The head of each agency shall submit to the Department of Budget and 
Management a strategic plan for program activities. Such plan shall contain - 
(A) a comprehensive mission statement covering the major functions and 
operations of agency; 
(€3) general goals and objectives, including outcome-related goals, and 
objectives, for the major functions and operations of the agency; 
(C) a description of how the goals and objectives are to be achieved; 
@)a description o f  how the performance goals shall be related to the 
general goals and objectives in the strategic plan; 
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(E)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 
(F) a description of the program evaluations used in establishing or 
revising general goals and objectives, with a schedule for future program 
evaluations. 
(2) The strategic plan shall cover a period of not less than five (5) years forward 
from the fiscal year in which it is submitted, and shall be updated and revised at least eve6 three 
(3) years. 
(3) 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 a plan. 
(4) For purposes of this section the term ‘agency’ means an Executive agency 
SECTION 5. Annualperformanceplans and reports. - 
(1) In carrying out the provisions of section, the Department of B dget and 
Management shall require each agency to prepare an annual performance plan cov ring each 
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program activity set forth in the budget of such agency. Such plan shall - I 
(A)establish performance goals to define the level of performance to be 
achieved by a program activity; 
(B) express such goals in an objective, quantifiable, and measurable form 
unless permitted an alternative form under subsection (2); 
(C) establish performance indicators to be used in measuring or assessing 
the relevant outputs, service levels, and outcomes of each program activity; 
@)provide a basis for comparing actual prograin results with the 
established performance goals; and 
(E) describe the means to be used to verify and validate measured values. 
(2) If an agency, i n  c onsultation with the D epartment, d etermines that it i s 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 
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(A) include separate descriptive statements of - 
(i) a minimally effective program, and 
(ii) 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 
(B) state why it is infeasible or impractical to express a performance goal 
in any form for the program activity. 
(3) 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 Tmajor function.or operation for the agency. 
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(4) An agency may prepare ii classified or non-public annex to its plan covering 
program activities or parts of program activities relating to - 
(A)national security; 
(B) the conduct of foreign affairs; or 
(C) the avoidance of interference with criminal prosecution 
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form shall 
SECTION 6. Program performance reports. - 
(1) No later than March 2005, 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. 
(2) 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. 


(3) The report for fiscal year 2005 shall include actual results for the preceding 
fiscal year, the report for fiscal year 2006 shall include actual results for the two prec ding fiscal 
years, and the report for fiscal year 2007 and all subsequent reports shall include ac u d  results 
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for the three (3) preceding fiscal years. 
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(4) Eash report shall - 
(A)review the success of achieving the performance goals of the fiscal 
year; 
(B) 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; 
(C)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 - 
(i) why the goal was not met; 
(ii) those plans and schedules for achieving the established 
performance goal; and 
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(iii)if the performance goal is impractical or infeasible, why that is 
the case and what action is recommended; 
@)describe the use and assess the effectiveness in achieving Performance 
goals of any waiver under this title; and 
(E) include the summary findings of those program evaluations ompleted 
(5) The agency head may include all program performance'informatio 'required 
during the fiscal year covered by the report. 
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, 
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SECTION 7. Managerial accountability andjlexibility. - 
(1) Beginning with fiscal year 2004, the performance plans required under section 
5 may include proposals to waive administrative procedural requirements and controls. In 


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preparing and submitting the performance plan, the Department of 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. 
(2) Any such proposal under subsection (1) shall describe the anticipated effects 
on performance resulting from greater managerial or organizational flexibility, disc etion, and 
authority, and shall quantify the expected improvements in performance resultin from any 
waiver. The expected improvements shall be compared to current actual performance, I 
and to the 
projected level of performance that would be achieved independent of any waiver. 
(3) Any proposal waiving limitations on compensation or remuneration shall 
precisely express the monetary change in compensation or remuneration amounts, such as 
bonuses or awards that shall result from meeting, exceeding, or failing to meet performance 
goals. 
(4) A waiver shall be in effect for one or two 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. - 
(1) 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 (3) 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. 
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(2) Pilot projects in the designated agencies shall undertake the prep ration of 
performance plans under Section 5, and program performance reports under section 6, ther than 
section 6(3), for one or more of the major functions and operations of the agency. 
strategic 
plan shall be used when preparing agency performance plans during one or more years of the 
pilot period. 
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provisions of this Act. 
SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of i nstruction, administrative order, rule or regulation c ontrary t o, or inconsistent 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 11. Efectivity CZause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved,