HULSE OF REPRESENTATIVES

Republic of the Philippines RECEIVED

HOUSE OF REPRESENTATIVES pate: 03 AUG 2016
Quezon City ”

Tine
SEVENTEENTH CONGRESS ey.
First Regular Session

2365 PORATION UNIT
HOUSE BILL NO, £889 ERVICE

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

Introduced by REP. HENEDINA RAZON- ABAD

EXPLANATORY NOTE

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

The problems of corruption and inefficiency need (0 be eradicated 0 restore the people's
crust in the government. This bill seeks to; (1) formulate and implement a system of stron
budger-pertormance linkage; (2) transtorm the General Appropriations Act (GAA) into a more
omprehensible, transparent, and accountable tool by making available both Hnancial and no
financial ihtormation of the agency; and (3) institutionalize Grassroots Participatory Budgeting
where basic sector organizations and other civil society organizations will have an active but
\ ticipation in identityin ning, and monitoring services that are responsive to the
reeds of the communities,

mnited p:

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
allaining 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

he

HENEDINA/RAZON- ABAD


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NTEENTH CONGRESS
First Regular Session
2485

HOUSE BILL NO.

Introduced by Rep. Henedina Razon-Abad

AN ACY 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:

SECTION 1, Short Title. ~ This Act shall be known as the "Government Performance
Management Act’,

SECTION 2. Declaration of Policies and Objectives, \t is hereby declared the
policy of the State to formulate and implement a system of strong budget-performance
linkage with the following objectives:

a To institutionalize a performance-informed budgeting system that

transforms the General Appropriations Act (GAA) to a more comprehensible,

transpar

nt, and accountable document by making available both financial

and non-financial information of each agene

b. To. strengthen the link between and among planning, budgeting,
implementation and agency performance in the context of the Philippine
Development Plan;

To specify the agency’s intended performance outcomes and establish a
reporting system that evaluates agency performance in the achievement of

its goals;


b.

a

(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;

© To improve the. effectivene

and efficiency of national programs by
measuring results, service quality, costs, and public satisfaction; and

f To es

tablish 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 i
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 rest

its 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;

“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;
Performance indicator” refers to a characteristic of performance (quantity, quality,
timeliness or cost) that will be measured and will illustrate the standard ot
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 ot

cach 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


niap 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 thereafte

the head of each agency shall notify the President of
the Philippines and Congr

ss of the strategic plan and any update thereto and make them
available (© the public through the agency website

Section 5. Performance-Informed Budgeting. ~ To 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
GAA a more comprehensible, transparent, and accountable document by making available

both fina

jal and non-financial information of each agency.
Section 6. Institutionalization of CSO Participation. - National government

all ensure the involvement of CSOs

agencies (NGAs) and local government units (LGUs) sh:
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
etlectivity 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
clfectivity 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
aigency 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.

. > Within one hundi

Section 10. Implementing Rules and Regulations ed 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.

ection 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
cffect.

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,
aniended, 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,