SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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nCTl7 P6 :il
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S E N A T E
S.B. No. 1205
Ki'X’L i V l,h  BY: 
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Introduced by Senator SONNY ANGARA
AN ACT
ESTABLISHING THE SUSTAINABLE DEVELOPMENT GOALS (SDG) 
AND AMBISYON NATIN 2040 FUND
EXPLANATORY NOTE
By the time the Millennium Development Goals (MDGs) expired last year, the 
world achieved major breakthroughs in eradicating extreme poverty and hunger, 
achieving universal primary education, promoting gender equality and women 
empowerment, reducing child mortality, improving maternal health, combatting 
deadly diseases like HIV/AIDS and malaria, ensuring environmental sustainability 
and strengthening global partnerships for mutual development. Between 2000 and 
2015 (the duration of the MDGs), close to a billion people were lifted out of poverty.
Despite this huge achievement, some 800 million people across the world still 
live in extreme poverty or on less than US$1.25 a day. This prompted the world over 
to re-engage on a new set of developmental goals, in consideration of new 
challenges and new insights on how best to combat poverty and promote human 
prosperity. 
Hence in September 2015, the 193 members of the United Nations 
(UN)— including the Philippines—adopted a new gl(j)bal development agenda and 
pledged to fulfill so-called Sustainable Development Goals (SDGs) by 2030.
The SDGs cover a wide expanse of issues, spread across 17 ambitious 
“global goals,” comprising up to 169 targets. According to experts, reaching these 
goals would need up to US$5 trillion a year for the next decade and a half.
Meanwhile, in 2016, the National Economic and Development Authority 
(NEDA) released Ambisyon Natin 2040 (AN2040), a visioning exercise conducted


through public consultations, focus group discussions, a nationwide survey and 
technical studies. Through AN2040, the NEDA determined that the average Filipino’s 
vision for their future can be crystallized as follows:
“In 2040, [we] Filipinos will enjoy a stable and comfortable lifestyle, secure in 
the knowledge that we have enough for our daily needs and unexpected 
expenses, that we can plan and prepare for our own and our children’s 
futures. Our families live together in a place of our own, yet we have the 
freedom to go where we desire, protected and enabled by a clean, efficient, 
and fair government. ’’
Meanwhile, average Filipinos envision that:
“[...] The Phiiippines shali be a country where ail citizens are free from hunger 
and poverty, have equai opportunities, enabied by fair and Just society that is 
governed with order and unity. A nation where families iive together, thriving 
in vibrant, cuituraily diverse, and resiiient communities. ’’
The foregoing measure aims to create an SDG AN2040 Fund to support the 
Philippines to meet the SDGs as a Member-State of the United Nations and to 
realize the visions under AN2040, considering President Rodrigo Duterte signed 
Executive Order No. 5, 2016 formally approving and adopting the NEDA program as 
the country’s main 25-year plan to eliminate poverty and hunger in the country.
The said fund will be made available to LGUs for SDG- and AN2040-related 
projects, and will be administered by a Board of Trustees comprised of seven (7) 
Department Secretaries as ex-officio members and four (4) appointive members 
from the private sector.
The SDGs— as a global initiative—and AN2040—as a fully Philippine 
endeavor—ought to be pursued vigorously in the years to come, with the end-view of 
lifting millions of Filipinos out of poverty and raising the standard of living felt across 
the country. In this way, the SDG AN2040 fund, created by this measure, ought to be 
seen as one wholly dedicated for LGUs to implement anti-poverty, pro-prosperity 
projects.
The swift passage of this measure is then earnestly sought.
SONNY ANGARA


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
)
S E N A T E
S.B. No. 1205
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.^piialr
of lllE ^ '’n H a ry
'16 
OCT 17 
P6:11
RECLlVKi) BY:
Introduced by Senator SONNY ANGARA
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AN ACT
ESTABLISHING THE SUSTAINABLE DEVELOPMENT GOALS (SDG)
AND AMBISYON NATIN 2040 FUND
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled:
SECTION 1. Title. -  This act shall be known as the 
Development Goals and Am bisyon Natin 2040 Fund A c t"
"Sustainable
SEC. 2. Declaration o f Policy. -  Pursuant to Sections 9 and 10 of the 1987 
Constitution, it is the policy of the State to promote a just and dynamic social order 
that will ensure the prosperity and independence of the nation and free the people 
from poverty through policies that provide adequate social services, promote full 
employment, a rising standard of living, and an improved quality of life for all as well 
as promote social justice in all phases of national development.
Toward this end, the State shall harness the resources generated by all 
agencies of the government and enjoin the support of the local government units 
who are the frontliners in the government’s efforts to reach all its citizens and ensure 
that all citizens are directly involved and benefitted by development programs and 
projects.
SEC. 3. Creation o f the SDG and Am bisyon Natin 2040 Fund. -  There is 
hereby created the Sustainable Development Goals and Ambisyon Natin 2040 Fund


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(SDG AN2040 Fund), the proceeds of which shall be raised from the foliowing 
sources:
a. Special Philippine Charity Sweepstakes Office (PSCO) lotto draws. At least 
one special PCSO lotto draw per year up to 2030 shall be conducted by the 
PCSO; the 30% of Net Receipts (minus operating and other expenses) 
usuaiiy set aside as contribution to the charity fund shail be set aside for the 
SDG AN2040 Fund;
b. Philippine Amusement and Gaming Corporation (PAGCOR). One percent 
(1%) of PAGCOR’s net income per year shaii be set aside for SDG AN2040 
Fund; and
c. Collection from Sin Taxes. One percent (1%) of tax collected from sin taxes 
aliotted to heaith programs shail be set aside for the SDG AN2040 Fund.
SEC. 4. Board o f Trustees. -  The Fund shaii be administered by the Board 
of Trustees, composed of the following:
Ex-officio Members (7):
(1) Secretary of the Department of Interior and Locai Government (DILG), as 
Chairperson:
(2) Secretary-General of the National Economic and Deveiopment Authority 
(NEDA):
(3) Secretary of the Department of Heaith (DOH);
(4) Secretary of the Department of Sociai Welfare and Development (DSWD);
(5) Secretary of the Department of Environment and Natural Resources 
(DENR):
(6) Secretary of the Department of Education (DepEd); and
(7) Secretary of the Department of Agricuiture (DA).
Appointive Members:
Four (4) representatives from the private sector, one of who shall serve as the 
Executive Director and ex officio Vice Chairperson.


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The Executive Director shall be elected by the Board annually from among the
four (4) appointive members appointed by the President of the Philippines.
The selection, appointment, and term of office of the appointive members
shall be in accordance with the pertinent provisions of Republic Act No.
10149, otherwise known as the GOCC Governance Act of 2011.
SEC. 5. Per Diems. -  The members of the Board shall receive per diem for 
every board meeting attended: Provided, That per diems and any other allowances 
of the Board shall follow the guidelines set by the Department of Budget and 
Management: Provided, further. That the Directors shall not be entitled to retirement 
benefits as such directors.
SEC. 6. Management o f the SDG AN2040 Fund. -  The SDG AN2040 Fund 
shall be managed by a Secretariat to be created within the DILG. The SDG AN2040 
Secretariat shall be headed by the Executive Director. The Executive Director shall 
be directly responsible for the hiring of the staff needed to operationalize the SDG 
AN2040 Fund.
SEC. 7. Compensation. -  The Executive Director and staff shall receive 
compensation at rates in accordance with the Salary Standardization Law.
SEC. 8. Projects under the SDG AN2040 Fund. -  The Board of Trustees, 
through the SDG AN2040 Secretariat, shall evaluate, assess and approve project 
proposals to be submitted by LG Us. The Board shall allocate the SDG AN2040 Fund 
by region, based on the priorities identified by the national government, consistent 
with the Medium Term Development Plan.
The LGUs shall be required to contribute 25% of the total project fund, with 
the balance of 75% to be sourced from the SDG AN2040 Fund: Provided, That the 
LGUs may use up to the maximum of 5% of total project fund for MOOE: Provided, 
however. That no amount shall be used for personnel services.


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SEC. 9. Funding. -  The Executive Director shall submit to the Board its 
annual budget including operating and maintenance expenses as well as personnel 
services to be allocated from the SDG AN2040 Fund.
SEC. 10. Implementing Rules and Regulations (IRR). -  Within six (6) 
months following approval, the Board created herein, in consultation with DILG, 
NEDA, DOH, DSWD, DENR, DepEd and DA, and private sector representatives, 
shall prepare the IRR to implement this Act. In particular, the IRR shall identify 
priority areas where the SDG AN2040 Fund shall be implemented, type of 
programs/projects to be funded, schedule of release of funds, etc.
SEC. 11. Separability Clause. -  In the event that any provision of this Act is 
declared unconstitutional, the validity of the other provisions shall not be affected by 
such declaration.
SEC. 12. Repealing Clause. -  All laws, decrees, orders, rules and 
regulations or parts thereof inconsistent with this Act are hereby repealed or modified 
accordingly.
SEC. 13. Effectivity. -  This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or two (2) national papers of general circulation.
Approved,