BOTTOM-UP BUDGETING

Draft Planning Guidelines for FY 2015

OBJECTIVES

BUDGET REFORM - making the national budget more responsive to local needs

LOCAL GOVERNANCE REFORM - providing incentives for local good governance - strengthening the devolution of basic services delivery

DEMOCRATIC AND EMPOWERMENT PROJECT - creating a conducive environment for people’s participation - generating demand for good governance at

the local level

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22

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OBJECTIVES

COMMUNITY / CIVIL SOCIETY

ORGANIZATIONS

COMMUNITY / CIVIL SOCIETY

ORGANIZATIONS

BUDGETFORMULATION

LEGISLATIVE APPROVAL

BUDGETIMPLEMENTATION

EVALUATION / ACCOUNTABILITY

LOCAL GOVERNMENTS

LOCAL GOVERNMENTS

BUDGET PROCESS

PARTICIPATORY POVERTY REDUCTION PLANNING

COVERAGE

2013:

609

2014:

1,233

2015:

1,634

2016:

1,634

2017:

???Cities & Municipalities

Participating Agencies (for FY 2015):DA, DAR, DEPED, DOE, DENR, DOH, DILG, DOLE, DSWD, DOT, DTI, TESDA and NEA

Oversight Agencies:DBM, DILG, DSWD, NAPC and NEDA

COVERAGE

Allocations per city/ municipality

- Formula: No. of poor x P700 (Rounded up to nearest million)

- Minimum of P15million, Maximum of P50 million

BUDGET CAP

HARMONIZATION WITH LOCAL PLANNING PROCESSES

– Two modes of BuB• Regular:

– LPRAT as a sub-committee of the LDC (Non-functionality of LDC should not be an obstacle for the LPRAT to meet)

• Enhanced Process– To be undertaken in 270 municipalities that have

graduated from or are currently implementing KALAHI-CIDSS

– LPRAT to serve as a technical working group of an “Enhanced LDC”; Final decisions to be made in the “Enhanced” LDC

LPRAT

• Under Regular BuB, LPRAT composed of:– Mayor, Sanggunian Appropriations Committee

Chair, local department heads and representatives of NGAs at the city/municipal level (50% of LPRAT members)

– Representatives of CSOs elected during the CSO assembly + 1 business group representative (50% of LPRAT members)

– Elected officials, their immediate relatives (spouse, parent, sibling, child) and LGU employees are ineligible to be elected as CSO representatives

Regular BuB Process

STEPS

• 1: Civil Society Assemblies– Orientation on BuB– Election of LPRAT representatives and 3

CSO signatories to the LPRAP (including LPRAT co-chair)

– Report of LCE on status of 2013 BuB Projects

– Poverty Situation Analysis

STEPS

• 2: Local Poverty Reduction Action Planning Workshop– Use LPRAP workshop modules which will be

distributed– Multi-year planning (submission of indicative

list of projects for 2016 and 2017)– Project Identification

• 80% within Menu of Programs (to be reviewed and validated by RPRAT)

• 20% outside of the Menu (to be reviewed and validated by NPRAT)

STEPS

• 3: Submission of List of Priority Projects and other supporting documents (hard

and soft copy)– Cover letter signed by mayor– List of projects using template signed by LCE

and 3 CSO representatives on every page– Project brief for each project– Report on compliance with participatory

processes• Conduct of CSO assembly – attendance sheet, photo of

participants, documentation of election report, LGU report on status of BuB 2013 projects

• Conduct of LPRAP workshop – photo of participants, attendance sheet, minutes or highlights of the LPRAP workshop

STEPS

• 4: Consolidation of list of projects by DILG RO and submission to NAPC and distribution to RPRAT members

• 5: Validation, Review and Replacement of Projects – Review / Validation by RPRAT and NPRAT– RPRAT meeting/workshop with LPRAT to replace

rejected projects– Submission to NAPC of final list of projects

STEPS

• 6: Adoption of final list of priority projects by local Sanggunian (to be submitted to DILG RO)

• 7: Integration into the National Budget

• 8: Provision of funding for LGU Counterpart in local budget

Counterpart Requirements

Proportion of BuB plus KALAHI-CIDSS funding to LDF

Required Cash Counterpart

Up to 100% of LDF 10% of LDF

Over 100% up to 150% 15% of LDF

Over 150% 20% of LDF

• For Municipalities: cash counterpart will be a % of the local development fund

• For Cities: cash counterpart will be 40% of the BuB budget cap

Counterpart Requirements

• Counterpart funding need not be allocated on a per project basis.

• Cash counterpart may be used to fund projects that are 100% funded by the LGU.

• Projects to be funded by the LGU cash counterpart should be determined by the LPRAT, effectively adding it to the ‘BuB Funding Pot’.

• KALAHI-CIDSS will no longer ask for other cash counterpart, however, additional non-cash counterpart may be required

Project Identification

• Project Identification: NEGATIVE LIST– Projects below P500,000– Expansion of Pantawid Pamilya, Social Pension for

Indigents Senior Citizens, PhilHEALTH coverage, vaccination programs

– Housing Projects– Construction of school buildings, classrooms and rural

health units– Farm to Market Roads– Law enforcement, fire protection and jail management

related projects– Construction of city hall, training centers and other

multi-purpose buildings– Purchase of motor vehicles, except those used for

rescue in times of disaster– International Training, scholarships

Governance Requirements

• Attain Seal of Good Housekeeping for 2013 assessment

• Develop a PFM Improvement Plan or attain 2014 targets if already developed

• Counterpart requirements are provided for BuB 2014 budget

• Submission of proper financial and physical accomplishment reports for LGU implemented BuB 2014 projects

• Compliance with intent of BuB for meaningful participation– Conduct of CSO assembly and LPRAT workshop– Conduct of Quarterly LPRAT meetings

IDENTIFIED PROJECTS WILL NOT BE FUNDED AND WILL NOT BE IMPLEMENTED IF THESE CONDITIONS ARE NOT MET

Enhanced BuB Process

(For Municipalities that have graduated from or are currently implementing

KALAHI-CIDSS)

Variances in the Process

• Barangay level planning– Conduct of barangay poverty situation analysis and

barangay assemblies (to be facilitated/ conducted by DSWD KALAHI-CIDSS)

• ‘Enhanced’ Local Development Council– CSO members:

• Barangay Development Council Vice-Chairs to be elected from KALAHI-CIDSS volunteers (1 per barangay)

• 5 CSO representatives elected during the CSO assembly– LPRAT to be created as a technical working group of the

Enhanced LDC• With 10 members from government, 5 members from

Barangay BDC Vice-Chairs, and the 5 CSOs elected during the CSO assembly

Variances in the Process

• ‘Enhanced’ Local Development Council to approve list of priority projects prepared by the LPRAT

• List of projects to be submitted to also contain KALAHI-CIDSS and LGU funded projects

• Planning process to be harmonized with crafting of Comprehensive Development Plan

CalendarActivity Responsible Party Period

For KALAHI-CIDSS areas only: Selection of BDC Vice-Chairs and Barangay-level

poverty situation analysis

DSWD AreaCoordination

Teams for KALAHI-CIDSS

Prior to Sept 2013

1 Orientation of the RPRATS DILG PMO Sep

2 Conduct of Civil Society Assemblies DILG ROs Oct

3 Orientation workshops for LPRATs RPRATS Nov 1 – 15

4 Conduct of LPRAP Workshops / Enhanced LDC and LPRAT meetings

LGUs Nov 16 - Dec 15

5 Submission of LPRAPs and list of priority projects / LDIPs to the DILG RO

LGUs Dec 16

6 Forward copies of all LPRAPs with consolidated list of projects / LDIPs to NAPC and participating regional offices; NAPC to forward to all participating Agency Central Offices

RPRAT Dec 23

Dec 30 - out to NGAs

CalendarActivity Responsible Party Period

7 Convening of RPRAT to validate LGU proposals; clarify proposals with LGUs if necessary

RPRAT Jan 20 – 31

8 Convening of NPRAT to review outside of the menu DILG PMO Jan 20 – 31

9 Submission of accepted and rejected outside of the menu projects to the RPRATs

DILG PMO Feb 3

10 Inform LPRATs of rejected projects for Replacement RPRAT Feb 6

11 Validation workshop to replace projects with LPRATs RPRATs Feb 10 - 21

12 Submission of consolidated revised LPRAPs/ LDIP to RPRATs together with Sangunian Resolution

LGUs Feb 28

13 Submission of consolidated list of validated projects to NAPC

RPRATs Mar 7

14 Endorsement of proposed BuB Projects to participating agencies

NAPC Mar 14

15 Integration of BuB Proposals with NGA budget proposals in the NEP

DBM and ACOs Mar 15 - April 14

16 Submission of agency proposed budget to DBM ParticipatingAgencies

April 15

Menu of ProgramsDA - Irrigation projects (SIP/STW/OSP)

- Infrastructure support to Agri and Fishery production (Tractor, Planter/Seeder, Harvester, Thresher, Sheller, Motorized Fishing Boat, Fish Nets)- Agro-Processing Facilities and Expanded Agri-Business Activities - Post-harvest Facilities and Equipment (Mechanical Dryers, Multi-Purpose Drying Pavement)- Cold Storage Facilities/Vans - Ports and Wharves - Trading Posts - Sustainable Agri-Fishery Based Livelihood and other Agri-Fishery Business Investments - Tramlines- Farm implements/ tools- Agri-Fishery training- Marine Reserve and Fish Sanctuaries- Marine protected areas- Organic fertilizer production

Menu of ProgramsDA - Irrigation projects (SIP/STW/OSP)

- Infrastructure support to Agri and Fishery production (Tractor, Planter/Seeder, Harvester, Thresher, Sheller, Motorized Fishing Boat, Fish Nets)- Agro-Processing Facilities and Expanded Agri-Business Activities - Post-harvest Facilities and Equipment (Mechanical Dryers, Multi-Purpose Drying Pavement)- Cold Storage Facilities/Vans - Ports and Wharves - Trading Posts - Sustainable Agri-Fishery Based Livelihood and other Agri-Fishery Business Investments - Tramlines- Farm implements/ tools- Agri-Fishery training- Marine Reserve and Fish Sanctuaries- Marine protected areas- Organic fertilizer production

Menu of ProgramsDENR - National Greening Program

DTI - Local Regional Economic Development - Yaman Pinoy’- Rural Micro Enterprise Development Program- Shared Service Facility- OTOP Store Express- Industry Clustering Development Program- Philippine Traceability for Revitalized Agricultural Competitiveness Enhancement Program (P-Trace)

DOT

DOE

NEA - On-grid Sitio Electrification Program- Barangay Line Enhancement Program

Menu of ProgramsDSWD - Sustainable Livelihood Program: Microenterprise Development

Track- Sustainable Livelihood Program: Employment Facilitation Track- KALAHI-CIDSS- Protective Services – Infrastructure Projects- Protective Services – Capacity Building

DOLE - Workers Income Augmentation Program (WIN AP)- TUlong Panghanapbuhay para sa Ating mga Disadvantaged Workers (TUPAD) - DOLE-AMP (DOLE- Adjustment Measures Program)- OFWs REINTEGRATION PROGRAM - SPES (Special Program for the Employment of Students)

TESDA

Menu of ProgramsDepEd -Basic Education Facilities: Repair / rehabilitation of classrooms

- Basic Education Facilities: Provision of school furniture - Gulayan sa Paaralan - Innovative programs to promote access to Education/ Abot-Alam Program

DOH - Maternal, neonatal, child health and nutrition (MNCHN) - Community Health Team (CHT) mobilization - Infectious diseases (Filariasis Elimination, Schistosomiasis and Malaria Control, Rabies Elimination, Leprosy, TB Control, STI/HIV and AIDS Prevention, Dengue Control- Health Emergency Mangement- RNheals- Rural Health Midwife Placement Program- Health Facilities Enhancement Program

Menu of ProgramsDILG - SALINTUBIG

- Capacity Building for CSOs- School Computer Laboratory- Birthing Facility- Core Local Road Construction/ Maintenance / Rehabilitation- Tourism Facility- Public Market- Slaughterhouse- Transport Terminal- Evacuation Facility- Rescue Equipment- Flood Control