SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHU"IPPINES 
First Regular Session 
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) 
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SENATE 
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S. B. No. 
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'13 
Introdnced by Senator Teofisto "TG" Guingoml m 
EXPLANATORY NOTE 
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This bill shall be known as "People's Participation in the National Budget Process Act of 
2013", It adheres to the principles of genuine democracy by enshrining the right of the people to 
direct participation in the budget process, thereby preserving people's power in influencing priorities 
underlying the budget for social development. 
It is high time we encourage non-governmental organizations (NGO) and people's 
organizations (POs) to focus their effort on the national budget, which is the primary economic and 
political tool of the government. 
The budget encompasses all aspects of governance policies, 
processes, political and social preferences, administrative reforms, delivery of services, etc. 
It 
reflects the government's commitment and political will to achieve social and economic change. 
Allover the globe, the innovative intervention of NGOs and Pas has strengthened 
expenditure management aJld oversight in many countries - both at the state and municipal/city 
levels. 
Civil society groups provided critical information on the impact of the budget to the 
marginalized sectors. They helped foster budget literary among the grassroots, the media, and even 
the legislature. Most of all, they provided the proper directions in terms of priorities on expenditures 
so that the budget truly responds to the needs of the people. 
In India, the campaigns of Mazdoor Kisan Shakti Sangathan (MKSS) for transparency in 
government, especially on expenditure records, led to the enactment of the Rajasthan State Right to 
Information Act of2006. In Mexico, FUNDAR's, a research and advocacy organization, use of the 
National Freedom oflnformation Law to obtain acconnting records from the Ministry of Health and 
engagement with the House of Representatives led to substantial increase in funding for HIV/AIDS. 
In Kenya, the government requests the Institute for Economic Affairs, which coordinates an annual 
civil society meeting for a report providing government with a set of agreed priorities, for it analysis 
as an annual input into the budget drafting stage, 
Recognizing that citizens' involvement in the budget process improved delivery of social 
services and increase investment for the most vulnerable sectors, many governments have 
institutionalized people's participation in the budget process. 
The Brazilian Government's Participation Budgeting process, which is now practiced in its 
70 municipalities and the State of Rio Grande Do SuI, resulted to an improved quality of life and 
equity in the provision of services, 
It also promoted transparency and accountability among 


government officials 
The government of North America and Western Europe are studying and 
trying to replicate this process of consulting the citizens in allocation of resources, selection of broad 
social policies, and expenditure monitoring. 
Other government initiatives are the Municipal Finance Management Act of 2003 in South 
Africa which promotes community participation in the budget process; the People's Campaign for 
Decentralized Planning initiated by the Indian State of Kerala, which allowed citizens to participate 
in formulating planning priorities, goals, and projects through budgetary functions; the government 
of Uganda's model which allows civil society engagement in the budget drafting stage; and Bolivia's 
Law of Popular Participation which allowed citizens to call for local audit to monitor spending by 
municipal councils. 
The international community already recognized the impact of civil society participation in 
the budget process to poverty alleviation efforts. 
The World Bank introduced the Public 
Expenditure Tracking System (PETS) in various countries as a methodology for tracking 
expenditures that enables users to reconcile budgetary flars and highlights not only the use and abuse 
of public money, but also give insights into cost efficiency, decentralization, and accountability. The 
Asian Development Bank supported regional technical assistance for Indonesia, Marshall Islands, 
and Pakistan to "enhance civil society's awareness of resource allocation and the budgeting process 
and their actual involvement in the budget decision-making process". 
The United Nations 
Department of Economic and Social Affairs promoted dialogues among governments and civil 
society groups to explore how the audit process can be made more open and participatory. It 
promoted social audits as a tool for citizen empowerment and government accountability. 
In the Philippines, we should be proud of the consortium of 48 NGOs and POs, which 
formed the Alternative Budget Initiative CABI). 
The ABI consortium initiated civil society-
legislators partnerships in formulating and lobbying for alternative budget proposals that put social 
services at top priority, including re-allocating unreasonably big and vague budgetary allotments to 
allocations for health, agriculture, education, and environment 
Due to the constructive interventions by NGOs in the national budget process, the National 
Economic Development Authority (NEDA), in its MDG Report in 2007, highlighted that the 
alternative budget advocacy for 2007 resulted in an increase of Php 22.7 billion in additional 
proposals for MDG-related activities and an approval of the Php 5.5 billion for the 2007 national 
budget for social services. 
As provided for by our Constitution, it is the policy of the State to promote social justice in 
all phases of national development (Article II, Section 10, 1987 Philippine Constitution). 
The 
Congressional Annnal Budget Deliberations affect the interests of every citizen, sector or 
community. As a result, NGOs and POs should be allowed to represent themselves in order to 
achieve an annual budget that is responsive to the national development of each and every sector of 
our community. 
Furthermore, Sections 15 and 16, Article XIII of the Constitution, respectively provides that, 
"The State shall respect the role of independent people's organizations to enable the people to pursue 
and protect, within the democratic framework, their legitimate and collective interests and 
aspirations though peaceful and lawful means" and "the right of the people and their organizations to 
effective and reasonable participation at all levels of social, political and economic decision-making 
shall not be abridged. The State shall, by law, facilitate the establishment of adequate consultation 
mechanisms for its implementation". 


It is high time the Philippine Congress recognize the importance of citizen groups' direct 
engagement in the budget process. We should now institutionalize the practice of legislature-civil 
society collaboration for a people-oriented budget and more participation, transparency and 
accountability in the budget process so that Congress may fully exercise its power of the purse for 
the people. 
The immediate enactment of this measure is sou 
UI 
Senator 


SIXTEENTH C()NGRESS OI.' THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SEN A TJ<; 
S.B. N~ 
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JUL -1 
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Introduced by Senator Teotisto "TG" Guillgona III 
AN ACT 
INSTITUTlONALlZJNG THE PARTIClP A TJON OF CIVIL SOCIETY 
ORGANIZATIONS (CSOs) IN THE PREPARATION AND 
AUTHORIZATION PROCESS OF THE ANNUAL NATIONAL 
BUDGET, PROVIDING EFFECTIVE MECHANISMS THEREFOR, 
AND FOR OTHER PURPOSES. 
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Be it enacted by the Senate and the House of Representatives c1 the 
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Philippines in Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Civil Society 
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Organizations' Participation in the. National Budget Process Act of2013". 
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SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
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State to facilitate the establishment of adequate consultation and feedback 
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mechanisms to promote meaningful and effective participation of Civil 
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Society Organizations (CSOs) in the preparation and authorization of the 
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annual national budget in order to ensure that the annual appropriations will be 
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an instrument of development that is reflective of the national objectives, 
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strategies and plans beneficial to the people. 
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SECTION 3. Definition of Terms. - For purposes of this Act, the following 
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terms are defined as follows: 
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a) 
"Accreditation" - refers to the registration process of CSOs with 
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the National Government Agencies (NGAs) and Government Owned and 
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Controlled Corporations (GOCCs), in order to allow them to participate in the 
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preparation and authorization of the annual national budget. 
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b) 
"Accredited CSO" -
refers to CSOs that have fulfilled the 
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requirements in Section 5 of this Act. 
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c) 
"Budget Call" - refers to the budget document issued by the 
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Department of Budget and Management (DBM) and sent to all NGAs and 
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GOCCs, which contains the policy guidelines and procedures in the 
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preparation of the annual budget, including the budget preparation calendar for 
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any given year. The issuance of a budget call signals the beginning of the 
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budget preparation phase. 
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d) 
"Civil Society Organizations (CSOs)"- includes non-government 
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organizations (NGOs), cause-oriented groups, 
people's organizations, 
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cooperatives, 
trade 
unions, 
professional 
associatIOns, 
faith-based 
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organizations, media groups, indigenous peoples movements, foundations, and 
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other citizen groups fonned primarily to contribute to social and economic 
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development, which monitor government projects, engage in poli<;;y 
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discussions, 
and 
actively 
participate in collaborative activities with 
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Government 
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e) 
Conflict of Interest" - refers to a condition which occurs when a 
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CSO or any of its key officers are involved in multiple interests which 
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prevents an impartial or unbiased attitude towards their participation in the 
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national budget process. 
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t) 
"Constructive Engagement" -
refers to a partnership between 
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Government and counterpart CSOs marked by sustained dialogue towards 
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problem solving while respecting and retaining the focus on assertion for 
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refonns and continuation of beneficial practices. 
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g) 
"Government-Owned or Controlled Corporation (GOCC)" - refers 
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to any agency organized as a stock or non-stock corporation, vested with 
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functions relating to public needs whether governmental or proprietary in 
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nature, and owned by the Government of the Republic of the Philippines 
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directly or through its instrumentalities either wholly, or, where applicable as 
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in the case of stock corporations, to the extent of at least a majority of its 
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outstanding capital stock 
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h) 
"National Government Agency (NGA)" - refers to a unit of the 
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National Government, including the Judiciary, both Houses of Congress, and 
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Constitutional Offices. 
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i) 
"Pm1icipatory Mechanisms" - refer to the means by which CSOs 
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can participate meaningfully and effectively in the government process of 
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formulating and authorizing an annual national budget that is responsive to the 
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needs of the different sectors in our society. 
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SECTION 4. Coverage. - This Act shall apply to NGAs and GOCCs that 
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derive financial SUppOit from allocations made in the Annual General 
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Appropriations Act. 
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SECTION 5. 
Accreditation. - The application for accreditation for the 
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Senate, the House of Representatives, the Judiciary, and the Constitntional 
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Offices shall be filed at the Office of the Secretary, the Secretary-General, the 
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Supreme Court Clerk of Court, and the Office of the Chairman, respectively. 
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The application for accreditation for other NGAs mId GOCCs may be filed at 
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their respective regional or central office. The application fonn shall be 
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prescribed by each office and the application for accreditation shall be 
accompanied by the following documents: 
a. 
Articles ofIncorporation and By-Laws of the applicant CSO; 
b. 
Certificate of Registration and/or other such similar documents, issued 
by an appropriate government agency tasked to register civil society 
organizations, such as but not limited to the Securities and Exchange 
Commission (SEC), Bureau of Labor Relations (BLR), House and Land Use 
Regulatory Board (HLURB), and the Cooperative Development Authority. 
c. 
The list of officers, directors, trustees and members; 
d. 
Duly audited financial statements for the past three (3) years showing 
the assets and liabilities of the organization; 
e. 
Full disclosure of the sources of funds; and, 
f. 
Full disclosure of service contracts with other NGAs, CSO, private 
corporations, other CSOs, and other engagements which may result in conflict 
of interest. 
Upon approval of the application, the head of the concerned NGA or GOCC 
shall issue the certificate of accreditation. This shall be valid for three (3) 
years following its issuance except for the certificate of accreditation issued by 
the Senate and the House of Representatives, which shall be valid for the 
entire term of the Congress under which sueh certificate of accreditation was 
issued. 
No application for accreditation shall be disapproved except upon due notice 
and proper hearing. The decision of the head of the concerned NGA or GOCC 
shall be rendered within twenty (20) working days from the time of the filing 
of the application. Failure to act on the application shall be deemed an 
automatic approval of the application for accreditation of the concerned CSO, 
and the issuance of a certificate of accreditation shall necessarily ensue. 
SECTION 6. CSO Participation. - In the interest of transparency, CSO 
participation shall be a component in the preparation and authorization of the 
annual national budget. All NGAs and GOCCs shall be required to formulate 
and adopt guidelines outlining the mechanism for the accreditation and active 
participation of the CSOs in the preparation and authorization of the annual 
national budget. 
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The DBM shall ensure that the NGA or GOCC has complied with the above 
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mentioned requirement. 
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Accredited CSOs, through their duly authorized representatives, shall be 
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allowed to participate as resource persons in the budget hearings to be 
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conducted by the appropriate Committees of each House of Congress provided 
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that they comply with the b'llidelines to be issued by both Houses of Congress. 
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Non-accredited CSOs may be allowed to participate as resource persons upon 
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the discretion of the NGA or GOCC concerned. 
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Notwithstanding their participation in the budget hearings to be conducted by 
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the appropriate Committees of each House of Congress as provided in the 
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preceding paragraph, the Committee on Appropriations of the House of 
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Representatives and the Committee on Finance of the Senate shall schedule 
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one hearing day for the presentation of the positions of accredited CSOs on the 
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budget. 
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SECTION 7. Privileges And Incentives. - CSOs shall enjoy the following 
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privileges and incentives: 
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a) If accredited, the CSO has the right to receive notices and pa11icipate as 
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resource person through its duly authorized representatives in any regular and 
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consultative public meetings, hearings, conferences, and dialogues on matters 
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related to the preparation and authorization of the annual national budget; 
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b) Access to copies of the budget proposals submitted by the NGAS or 
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GOCCs to the DBM; 
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c) To provide position papers to the DBM on the budget proposal ofNGAs 
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or GOCCs submitted pursuant to the budget call; 
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d) 
To submit its own alternative or proposed budget or position paper; 
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e) Access to issuances such as, but not limited to policy orders, circulars and 
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memoranda that are related to the budget; 
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t) Access to the 
documents prepared by the DBM for submission to 
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Congress by the President as a basis for the General Appropriations Bill 
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required under Article VII, Section 22 of the Constitution; 
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g) To present written proposals on projects and activities of the government 
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entities whose budget is under deliberation; and 
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h) Access to committee reports released by both I-louses. 
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SECTION 8. Notice to CSOs. 
Notice to CSOs may be sent through 
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electronic mail, facsimile machine, postal mail, and by posting at the website 
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of the NGA or GOCC concerned. Any of the said modes of sending notices 
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shall be deemed compliance to the requirements under Section 7(a) of this 
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Act. 
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SECTION 9. Conflict of Interest. It is the responsibility of the CSO to 
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inform the NGA or GOCC of a conflict of interest in their work with the 
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concerned agency, if and when such situation arises. 
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However, if the NGA or GOCC deems that the CSO has a conflict of interest 
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with the work of such NGA or GOCC, the latter shall give the applicant-CSO 
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an opportunity to explain and prove that no conflict of interest exists. 
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In case there is a conflict of interest, the NGA or GOCC shall automatically 
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suspend the privileges of the CSO and such shall remain in effect until the 
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contlict of interest ceases to exist. 
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SECTION 10. Cancellation of Accreditation. - Upon receipt of a verified 
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complaint 
in 
writing, which charges the 
holder of a 
certificate of 
I S 
accreditation of having procured their certificate of accreditation by fraud or 
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deceit, the head of the NGA or GOCe shall notify and serve a copy of the 
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complaint to the eso concerned, who shall be given an opportunity to be 
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heard. 
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Inaction by the 
NGA or GOee on the said complaint within twenty (20) 
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working days from the receipt of such complaint shall be deemed a dismissal 
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of the complaint against the eso involved 
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SECTION 11. NOli-Accredited CSOs. - Non-accredited CSOs may still 
2S 
participate in the budget process by submitting position papers for the NGN s 
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or GOCe's consideration and by attending and observing public consultations. 
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They may be invited to expound on their critique or proposals when said 
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institutions deem it fit. Nothing in this Act shall be construed to deprive non-
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accredited CSOs the rights, privileges and incentives accorded to them by 
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the Constitution, existing laws, executive orders, rules and regulations and 
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other issuances. 
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SECTION 12. Public and Timely Disclosure of Budget Documents and 
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Other Related Data. - In order for esos to participate in an informed 
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manner, the NGA or GOeC shall post on their web sites or other public 
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posting areas, budget documents to which CSOs shall have access, as provided 
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for under Section 7 of this Act. 
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SECTION 13. Separability Clause. - If any provision of this Act is declared 
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unconstitutional, the same shall not affect the validity and effectivity of the 
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other provisions hereof 
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SECTION 14. Repealillg Clause. - All laws, decrees, executive orders, 
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rules and regulations, issuances or any part thereof inconsistent with the 
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provisions of this Act are hereby repealed or amended accordingly. 
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SECTION 15. Effectivity. - This Act shall take effect fifteen (15) days after 
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its publication in at least two (2) national newspapers of general circulation. 
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Approved, 
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