Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

4610

HOUSE BILL NO.

AN ACT TO INSTITUTIONALIZE A SYSTEM OF PERFORMANCE PLANNING,
BUDGETING, AND ACCOUNTABILITY
IN ALL GOVERNMENT AGENCIES

Introduced by REP. HENEDINA RAZON- ABAD

EXPLANATORY NOTE

Article II, Section 27 of the Constitution provides that the State shall maintain
honesty and integrity in the public service and take positive measures against graft and
corruption. Article XI, Section 1 of the Constitution provides that public officers and
employees must at all times be accountable to the people, serve them with utmost
responsibility, integrity, loyalty, and efficiency, act with patriotism and justice and lead
modest lives.

The problems of corruption and inefficiency need to be eradicated to restore the
people's trust in the government. This bill seeks to: (1) formulate and implement a
system of strong budget-performance linkage; (2) transform the General
Appropriations Act (GAA) into a more comprehensible, transparent, and accountable
tool by making available both financial and non-financial information of the agency; and
(3) institutionalize good governance practices already adapted by government agencies
such as: (a) Performance-Informed Budgeting whose objective is to make the budget a
more comprehensive, transparent, and accountable document; (b) Government Annual
Performance Plan which specifies the agencies’ intended performance goals and how to
meet them and establish performance indicators to measure the programs’ results; and
(c) Grassroots Participatory Budgeting where basic sector organizations and other civil
society organizations will have an active but limited participation in identifying,
planning, and monitoring services that are responsive to the needs of the communities.

Agencies will be mandated to submit strategic plans and performance goals
based on the Philippine Development Plan. Goals will be set and achieved, results will
be measured, gaps will be filled, and progress reported. This way, the confidence of the
people in the capability of the government will greatly improve as it will become more
efficient and accountable. Moreover, this bill will reinforce Congress’ decision-making
by providing more objective information in attaining statutory objectives and realistic
goals, fund sourcing, and disciplined government spending.


In view of the foregoing reasons, the immediate passage of this bill is earnestly
sought.

, Oh

HENEDINA, /ON- ABAD


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4610

Introduced by Rep. Henedina Razon-Abad

AN ACT TO INSTITUTIONALIZE A SYSTEM OF PERFORMANCE PLANNING,
BUDGETING, AND ACCOUNTABILITY
IN ALL GOVERNMENT AGENCIES.

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
a SECTION 1. Short Title. - This Act shall be known as the “Government Performance
2 Management Act”,
3 SECTION 2. Declaration of Policies and Objectives. It is hereby declared the
4 — policy of the State to formulate and implement a system of strong budget-performance

5 linkage with the following objectives:

6 a. To institutionalize a performance-informed budgeting system that
7 transforms the General Appropriations Act (GAA) to a more comprehensible,
8 transparent, and accountable document by making available both financial
9 and non-financial information of each agency;

40 b, To strengthen the link between and among planning, budgeting,
a implementation and agency performance in the context of the Philippine

12 Development Plan;


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To specify the agency's intended performance outcomes and establish a
reporting system that evaluates agency performance in the achievement of
its goals;

d. To institutionalize the involvement of civil society organizations (CSOs) in
the identification, planning, budgeting and monitoring of government
programs and projects to ensure that the services of agencies are responsive
to the needs of the communities;

ec. To improve the effectiveness and efficiency of national programs by
measuring results, service quality, costs, and public satisfaction; and

; To establish better transparency and accountability in the use of financial
resources allocated to the agencies,

SECTION 3. Definition of Terms, -

“Agency” refers to any of the various units of the government, including a

department, bureau, office, instrumentality, state universities and colleges (SUCs),

or government-owned and controlled corporation, or a local government or a

district unit therein, as defined in Section 2 of Executive Order No. 292 or the

Revised Administrative Code of 1991;

“Program” refers to an integrated group of activities that contributes to a particular
objective or outcome goals of a department/agency;

“Outcome measure” refers to an assessment of the results of a program activity
compared to its intended purpose;

“Output measure” refers to the tabulation, calculation, or recording of a program

activity, whether expressed in a quantitative or qualitative manner;


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e. “Performance goal” or “target” refers to a predetermined level (numerical target) of
quantity, quality, timeliness, and cost of performance expressed as a tangible,

measurable objective, against which actual achievement can be compared with;

f. “Performance indicat ‘efers to a characteristic of performance (quantity, quality,
timeliness or cost) that will be measured and will illustrate the standard of
performance by which a department/agency has delivered its output or outcome
SECTION 4. Strategic Planning. - Before the end of each fiscal year, the head of

each agency shall ensure the preparation and updating of a strategic plan. This agency plan
shall contain information on how it will link its strategic objectives with that of the
government's strategic plan which is the Philippine Development Plan. This plan shall also
map out the priorities of the agency as well as note the risks that may challenge their
implementation along with suggested mitigation measures.

The agency strategic plan shall cover a period of not less than five (5) years. At
least once every two (2) years or as needed, the head of the agency may make adjustments
in its strategic plan to reflect the impact of significant changes in the environment under
which it is operating.

No later than the first Monday of February of the year following the effectivity
of this Act and every year thereafter, the head of each agency shall notify the President of
the Philippines and Congress of the strategic plan and any update thereto and make them
available to the public through the agency website.

Section 5. Performance-Informed Budgeting. - Yo link the annual budget with the
agency’s strategic plan, every agency's budget in the GAA shall feature the results and

outcomes it plans to achieve with the resources appropriated to it. This shall make the


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GAA a more comprehensible, transparent, and accountable document by making available
both financial and non-financial information of each agency.

Section 6. Institutionalization of CSO Participation, - Government agencies shall
ensure the involvement of CSOs in the identification, planning, budgeting and monitoring of
programs and projects of the government.

Section 7. Agency Annual Implementation Plan. - Within thirty (30) days from the
effectivity of the GAA, the head of each agency shall prepare and submit an Annual
Implementation Plan (AIP) to the President of the Philippines and Congress, making it
public through the agency website. In case of a full re-enactment of the GAA, the AIP shall
be based on the authorized budget level, as re-enacted and shall be submitted within the
first quarter of the year,

Section 8. Government Implementation Plan. - Within ninety (90) days from the
effectivity of the GAA, the Secretary of the Department of Budget and Management shall
prepare the overall Government Implementation Plan based on the agency AIP and submit
the same to the President of the Philippines and Congress, making it public through the
DBM website.

Section 9. Program Performance Results Reporting. - No later than April 30 of the
fiscal year following the effectivity of this Act, and every year thereafter, the head of each
agency shall prepare and submit to the President of the Philippines and Congress, an
Annual Accountability Report on its performance for the previous fiscal year. The Report
shall compare actual performance and expenditures with the performance goals and

planned spending established in the agencies’ AIP under Section 7.


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Section 10. Implementing Rules and Regulations. - Within one hundred twenty
(120) days after effectivity of this Act, the Department of Budget and Management in
consultation with agencies concerned shall promulgate the Implementing Rules and
Regulations.

Section 11. Separability Clause. - If any part of this Act shall be held to be
unconstitutional or invalid, other parts or provisions shall continue to be in force and
effect.

Section 12. Repealing Clause. - All laws, presidential decrees, executive orders, or
rules and regulations, which are contrary to the provisions of this Act are hereby repealed,
amended, and modified accordingly.

Section 13. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,