HOUSEOF REPRESENTATIVES
RECEINELD
10 AUG 2016

DATE:
Republic of the Philippings yy 00M

HOUSE OF REPRESENTATIVES _ .
Quezon City | BY a

SEVENTEENTH CONGRESS =
First Regular Session | ILLS AND INDEX S

House sino, 2644

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT INSTITUTIONALIZING GRASSROOTS PARTICIPATORY BUDGETING
IN THE PLANNING AND IDENTIFICATION OF PROGRAMS AND PROJECTS.
TO BE FUNDED BY THE ANNUAL GENERAL APPROPRIATIONS ACT

EXPLANATORY NOTE

The right of citizens to participate in governance is stipulated in Article XIII,
Sections 15 and 16 of the 1987 Philippine Constitution. Likewise, the Local Government
Code of 1991 requires agencies and offices to conduct consultations with local
government units and civic groups prior to the implementation of programs and projects
However, despite these mandates, true participatory governance has not been
effectively realized.

The actualization of these mandates is critical in addressing inequity, poverty and
marginalization which continue to prevail in the country. One such move towards
participatory governance is the institutionalization of Grassroots Participatory Budgeting
Process (GPBP), which allows citizens, local or civic society organizations (CSOs) and
local government units to participate directly in deciding how the national budget is to be
utilized each year. The GPBP is also a step towards attaining transparency in
governance.

In view of the aforementioned, the approval of this meagure is strongly
recommended.



Cava

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
First Regular Session

HOUSE BILLNo. 2844

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT INSTITUTIONALIZING GRASSROOTS PARTICIPATORY BUDGETING
IN THE PLANNING AND IDENTIFICATION OF PROGRAMS AND PROJECTS.
TO BE FUNDED BY THE ANNUAL GENERAL APPROPRIATIONS ACT

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

SECTION 1. Short Title. - This Act shall be known as the "Grassroots Participatory
Budgeting Act of 2016.”

SEC. 2. Declaration of Policy. - In pursuit of inclusive growth and poverty
reduction, it is hereby declared the policy of the State to institutionalize transparency,
accountability and citizen's participation in governance.

To ensure that the annual appropriations of National Government Agencies (NGAs)
will be an instrument of development and reflective of local objectives, strategies and
plans, the State shall ensure the involvement of Civil Society Organizations (CSOs) by
institutionalizing Grassroots Participatory Budgeting in the identification and planning of
programs and projects that will be funded by the General Appropriations Act (GAA).

SEC. 3. Definition of Terms. For purposes of this Act, the following terms shall
have the following definition:

3.1. Grassroots Participatory Budgeting (GPB) - an approach to preparing the budget
proposal of agencies, taking into consideration the development needs of municipalities
and cities as identified in their respective local development plan and/or local anti-
poverty action plan that shall be formulated with strong participation of basic sector
organizations and other CSOs.


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3.2. Civil Society Organizations (CSOs) - Include non-government organizations

(NGOs), people's organizations, cooperatives, trade unions, professional associations,
faith-based organizations, media groups, indigenous peoples movements, foundations,
and other citizen groups formed primarily for social and economic development, to
monitor government programs and projects, engaged in policy discussions, and actively
participate in collaborative activities with the Government.

3.3. Citizen Participation - A democratic process involving people empowerment,
whereby concemed citizens organized as CSOs, pursue their legitimate and collective
interests by, among others, monitoring the effectiveness of Programs and Projects
(PAPs) and in so doing become partners of the Government in governance.

3.4. Local Poverty Reduction Action Plan (LPRAP)/ Local Development Action Plan
(LDAP) - the Local Government Unit (LGU) plan which contains programs and projects
collectively drawn through a participatory process by the LGUs with CSOs and other
stakeholders, and which will directly address the needs of the poor constituencies and
the marginalized sectors in the city or municipality.

3.5. Local Poverty Reduction Action Team (LPRAT)/ Local Development Action
Team (LDAT) - the group to spearhead the formulation and monitoring of the
LPRAP/LDAP composed of the following:

Chairperson: Local Chief Executive (LCE)
Co-Chairperson: A CSO Representative
Members:
Representatives from the LGU, to wit:
(a) Sangguniang Panglungsod/Bayan Member who is the chairperson of
the Committee on Appropriations;
(b) All local government department heads such as the Planning Office,
Budget Officer, Agriculture Officer, Social Welfare and Development
Officer and Health Officer;
(c) Representatives of National Government Agencies (NGAs) such as
Department of Social Welfare and Development (DSWD) Municipal
Links, PESO Manager and the Department of Interior and Local
Government (DILG) City/Municipal Local Government Operations
Officer, the School District Supervisor and Agrarian Reform Officer;
and


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Representatives from CSOs (who must be residents of the city or

municipality), to wit:

(a) A Pantawid Pamilya Parent-Leader;

() A Leader from Department of Health (DoH) organized Community
Health Teams;

(0) A Leader of Parent- Teacher Associations;

(d) A Leader of CSOs accredited or recognized by any NGA;

(e) A leader of women's groups;

(f) A leader of basic sector organizations;

(g) A leader of other community or grassroots organizations; and

(h) A representative from the business sector.

The LPRAT shall be composed of an equal number of government representatives
and non- government representatives. It should also be composed of at least 30%
women.

In the event that the sectors indicated are not organized, the LGU, in coordination
with CSOs and concerned national government agencies, shall initiate and support the
organization of the basic sectors identified. The sectors will be made to undergo the
same accreditation process, as the CSOs for inclusion in the LPRAT.

3.6. LPRAT Powers and Functions:

a. Identify priority poverty reduction projects through a consensus among its
members. In the absence of a consensus, the decision will be made through a

majority vote;

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Develop and formulate the Local Poverty Reduction Action Plan (LPRAP)
based on the identified priority poverty reduction projects from a list issued by
the DBM and following the process and guidelines in the Implementing Rules
and Regulations;

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Conduct public consultations, when necessary, to ensure that the projects to
be embodied in the LPRAP reflect an actual need in the community;

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Submit the LPRAP to the RPRAT for validation; and


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e. Participate in the budget deliberation process of the Local Development
Council.

3.7. Regional Poverty Reduction Action Teams (RPRATs)/ Regional Development
Action Teams (RDATs) - the group that shall provide support and guidance to LGUs
through the GPB process and monitor the implementation of the GPB projects,
composed of the following:

Chairperson: DILG Regional Director;
Vice Chairperson: Department of Budget and Management (DBM) Regional
Director;

Members:

(a) Regional Directors of NGAs;

(b) Regional Director of the National Economic Development Authority (NEDA)
(c) Two (2) CSO representatives per province as identified by the National Anti-
Poverty Commission (NAPC)

SEC. 4. Role of LGUs and NGAs. All LGUs and NGAs shall be required. To
formulate and adopt guidelines outlining the mechanism for the accreditation and active
participation of the CSOs.

To ensure that the LPRAP/LDAP is truly reflective of the needs of the community,
LGUs must ensure that the CSOs are involved throughout the GPB process and shall
coordinate with the concerned NGAs in preparing work and financial plans and other
documents as required

Departments/Agencies shall ensure complementation between national and LGU
projects by closely coordinating with LPRATS/LDATs. In accordance to GPB guidelines
issued previously by the DBM, the validated/ qualified LGU projects shall be integrated
in the agency budget proposal. Disclosure shall be made on the proposed LGU
counterpart funds, if any.

Agencies, through their regional and/ or provincial offices, shall inform concerned
LGU regarding the acceptance and approval of the budget for the implementation of
GPB identified projects and facilitate the compliance by LGUs with the requirements for

the implementation.


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SEC. 5. Role of CSOs - In the interest of community ownership and transparency,
CSO participation shall be a component in the planning, identification and monitoring of
projects and programs that shall be funded by the annual National Budget.

A locally accredited CSO may spearhead the implementation of identified projects at
the barangay level, provided that they have prior experience in implementing projects
through a Community Driven Development (CDD) approach. Specifically, these CSOs
must have prior experience in undertaking community led procurement and in
community monitoring of project implementation using participatory processes of

information disclosure.

SEC. 6. Public and Timely Disclosure of Budget Documents other Related
Data. - In order for CSOs to participate in an informed manner, the LGU/NGA/ GOCC
shall post on their websites or other public posting areas, LPRAP and budget

documents to which CSOs shall have access.

SEC. 7. Separability Clause. - If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof.

SEC. 8. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, issuances or any part thereof inconsistent with the provisions of this Act are

hereby repealed or amended accordingly.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in two (2) newspapers of general circulation.

Approved,