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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO, 3155

Introduced by Honorable Roger G. Mercado

EXPLANATORY NOTE

Our Constitution mandates that the State shall ensure the autonomy of local
governments and promote the participation of citizens in governance to foster
transparency, accountability, and inclusive development.

Despite this, the budgeting process of the national government remains
‘opaque, with limited opportunities for meaningful citizen involvement. This often
results in budgets that fail to address the priority needs of communities, leading
to inefficiencies and diminished public trust in governance.

‘This bill secks to address these concerns. Therefore, passage of this bill is
hereby being earnestly sought.

ROGER G. MERCADO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Twentieth Congress
First Regular Session

HOUSE BILL NO. 3155

Introduced by Honorable Roger G. Mercado

AN ACT
INSTITUTIONALIZING PEOPLE’S PARTICIPATION IN THE
NATIONAL BUDGETING PROCESS, PROVIDING MECHANISMS
FOR PUBLIC CONSULTATION AND OVERSIGHT, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Declaration of Policy. It is the policy of the State to promote transparency,
accountability, and participatory governance in the national budgeting process, as
mandated by Section 7, Article II] of the 1987 Constitution, which guarantees the right
of the people to information on matters of public concern, and Section 28, Article II,
which mandates the State to encourage the participation of non-governmental,
community-based, or sectoral organizations in public affairs. The State recognizes that
public participation in the budgeting process enhances fiscal responsibility, ensures that

public funds address the needs of the people, and strengthens democratic governance.

SECTION 2. Definition of Terms

For purposes of this Act the following terms shall be defined as follows:


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+ People’s Participation refers to the active involvement of citizens, civil society
organizations (CSOs), and sectoral groups in the preparation, authorization,

execution, and accountability phases of the national budgeting process.

ivil Society Organizations (CSOs) refer to non-governmental organizations,
people’s organizations, or sectoral groups registered with the Securities and
Exchange Commission (SEC), Cooperative Development Authority (CDA), or
other relevant government agencies.

‘+ Budget Consultation refers to structured dialogues, public hearings, or online
platforms organized to gather inputs from citizens and CSOs on budget priorities,
programs, and projects.

SECTION 3. People’s Participation in the Budgeting Process. The national budgeting

process shall incorporate mechanisms for people’s participation in the following phases:

1, Budget Preparati
1.1 The Department of Budget and Management (DBM) shall conduct
public consultations with CSOs, local government units (LGUs), and

the

citizens to identify priority programs and projects for inclusi
National Expenditure Program (NEP).

1.2 Consultations shall be held at least sixty (60) days before the submission

of the NEP to Congress, in at least one (1) city or municipality per

region.
2 Budget Authorization:

2.1 The House of Representatives and the Senate shall hold public hearings

during the deliberation of the General Appropriations Bill (GAB),

allowing CSOs and citizens to present position papers or

recommendations.


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2.2 A summary of public inputs shall be included in the committee reports
of the House Committee on Appropriations and the Senate Committee
on Finance.

3 Budget Execution:

3.1 The DBM shall publish quarterly reports on budget utilization,
including disbursements and project implementation status, on its

offi

website

user-friendly format.

3.2 CSOs and

ens may participate in monitoring budget execution
through the Citizen Participatory Audit (CPA) program of the
‘Commission on Audit (COA).

4 Budget Accountal

4.1 The DBM and COA shall conduct annual public forums to present
budget performance reports, allowing citizens and CSOs to provide

feedback and raise concerns.

4.2 Feedback from these forums be considered in the preparation of
the subsequent year’s budget.
SECTION 4. Mechanisms for Public Participation
1. National Budget Portal:

1.1 The DBM shall maintain an online National Budget Portal to provide

access to budget documents, including the NEP, GAB, and budget
utilization reports, in a downloadable and machine-readable format.

2.2 The portal shall include a feedback mechanism for citizens to submit

comments, suggestions, or inquiries on the budget.

2. Regional Budget Consultations:


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2.1 The DBM, in coordination with LGUs and the National Economic and
Development Authority (NEDA), shall organize regional budget

consultations to ensure representation from urban and rural

commun

2.2 Consultations shall include but not limited to representatives from
marginalized sectors, including women, youth, indigenous peoples, and
persons with disabilities.

3° Capacity Building:

3.1 The DBM and COA shall conduct training programs for CSOs and
citizens on budget literacy, monitoring, and evaluation to enhance their
capacity to engage in the budgeting process.

SECTION 5. Role of Congress

1. The House Committee on Appropriations and the Senate Committee on Finance
shall ensure that public inputs gathered during consultations are considered
during budget deliberations.

2. Congress shall allocate funds in the General Appropriations Act to support the
implementation of this Act, including the maintenance of the National Budget
Portal and the conduct of regional consultations.

SECTION 6. Penalties. Any government official or employee who willfully prevents or
restricts CSOs or citizens from participating in the budgeting process, as provided in this
Act, shall be subject to administrative sanctions, including suspension from one (1) to six
(6) months, and/or a fine of 300,000 to P1,000,000, without prejudice to other penalties
under existing laws.

SECTION 7. Appropriations. The amount necessary for the implementation of this Act

shall be included in the annual General Appropriations Act under the budget of the DBM.


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SECTION 8. /mplementing Rules and Regulations. Within ninety (9) days from the
effectivity of this Act, the DBM, in consultation with the COA, NEDA, and aceredited

‘CSOs, shall promulgate the necessary implementing rules and regulations.

SECTION 9. Separability Clause. If any provision of this Act is declared unconstitutional
or invalid, the remaining provisions not affected thereby shall remain in full force and
effect.

SECTION 10. Repealing Clause. All laws, decrees, orders, rules, and regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SECTION 11. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,