2015 bub

GRASSROOTS PARTICIPATORY BUDGETING

PROCESS(Bottom-up Budgeting)

Joint Memorandum Circular No. 4

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.

Inclusive growth and poverty reduction, and promoting good governance at the local level

OBJECTIVES:

Section 6.2.8. All projects must contribute to:

•Provision of Basic Social Services and Attainment of the Millennium Development Goals, including poverty reduction;

•Hunger Mitigation and Elimination;

•Job Generation and Inclusive Local Economic Development

•Climate Change Adaptation/Mitigation and Disaster Preparedness

OBJECTIVES

2013 2014 2015 2016 2017

609 1,233 1,634 1,634 ? ? ?

No. Cities & Municipalities

COVERAGEParticipating Agencies –(12 NGAs) DAR, DA, DepEd, DOE, DENR, DOH, DILG, DOLE, DSWD, DTI, DOT and TESDA and (1) GOCC NEA through which funding for GPB programs will be allocated.

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

BUDGET CAP

Allocation per City/Municipality ( Annex A)

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

- Minimum of P15million, Maximum of P50,000

HARMONIZATION WITH LOCAL PLANNING PROCESSESTwo Modes of Grassroots Budgeting (GPB)

- RegularRegular- LPRAT as a committee of the LDC

-Enhanced ProcessEnhanced Process- To be undertaken in 271 municipalities that have graduated from or are currently implementing KALAHI-CIDDS

- Integrate barangay level planning in the city/municipal level planning.

- LPRAT as a technical working group of “Enhanced LDC”; decisions to be made in the “Enhanced LDC”

Which Mode SK LGUs belong?

REGULAR PROCESS:1)General Santos City 2) Alabel 3) Glan

ENHANCED PROCESS:1)Kiamba 2) Maasim 3) Maitum 4) Malapatan 5) Malungon

LPRATUnder Regular Process:

- Mayor (Chair), Sangguniang Appropriations Committee Chair, all 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). If more than 20% IPs, one elected representative must come from the IP Sector

Note:

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

Composition shall be equal number of government (including the LCE) and non-government representatives.

All CSO representatives should be residents of the city/municipality.

The LPRAT should also be composed of at least 40% women.

LPRAT (LDC-TWG) Composition

Under Enhanced GPB:

- 10 Representatives from government

- 5 Barangay Development Council Vice-Chairpersons selected through KALAHI-CIDSS

- 5 CSO representatives in the Enhanced LDC

Note:

LPRAT under Enhanced Process serves as the Technical Working Group (TWG) of Enhanced Local Development Council (LDC)

Enhanced LDC Composition:Chair: Mayor Vice-Chair: A CSO RepresentativeMembers from Government:-All Punong Barangays-Chairperson, Committee on Appropriations-District RepresentativeMembers from CSO:-All Vice-Chairs of BDC-At least 5 CSO representatives elected during assembly

REGULAR GPB Process(Steps)

STEPS1) Civil Society general assemblies

- Orientation on local governance and grassroots budgeting

- Election of LPRAT representatives , 3 CSO signatories (including LPRAT Co-Chair)

- Report on status of 2013 and Approved list of 2014 GPB (BUB) projects

- Poverty Situation Analysis

Note:

LPRAP Signatories must include:

1)A Pantawid Pamilya Parent Leader (DSWD Municipal Link shall facilitate selection) or a PTA representative if no Pantawid Pamilya Parent Leader

2)A Basic Sector Organization or Cooperative Representative

3)A CSO representative who is a member of LDC

STEPS2) Local Poverty Reduction Action Planning

-Constitute the LPRAT

-Technical assistance by RPRAT and GPB PMO

-LPDC with LFC and other heads shall present poverty situation

-Identify specific poverty reduction strategies and projects to be included in the LPRAP:80% of Budget Cap within Menu (subject to RPRAT review and validation)20% outside of the Menu (subject to NPRAT review and validation)

-- Prioritize poverty reduction projects

-- Multi-year Planning approach shall be undertaken

STEPS

Note:

Both PRINTED (Hard) and ELECTRONIC (Soft) copies should be submitted to DILG RO. The list of priority projects must be submitted in both PDF and word/excel format thru e-mail.

STEPS4: Consolidation of the List of Priority Poverty Reduction Projects by DILG RO and submission to NAPC and distribution to RPRAT members

5: Validation, review and revision of Priority Poverty Reduction Projects by R/NPRAT

6: Submission of revised list of priority projectsThe LPRAT shall submit its revised list of

projects signed by 3 CSO representatives together with project briefs for each project and SP/B resolution to the DILG RO .

STEPS

7: Integration of the LGU projects in the budgets of participating agencies.

8: Provision of LGU Counterpart

9: Project Implementation

COUNTERPART REQUIREMENTS

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

Proportion of GPB plus KALAHI-CIDSS 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 Cities: Cash counterpart will be 40% of the Budget Cap


• Non-KALAHI CIDSS LGUs, counterpart be solely based on the Budget Cap

•Additional non-cash counterpart for KALAHI-CIDSS LGUs shall be required from the LGUs.

•LGU Counterpart Funds shall be added to the funding available for GPB.

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

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

•National programs that require a counterpart, as indicated in the Menu of Programs, shall be included as part of the LGU counterpart.

Provided that funds for monitoring and evaluation of GPB Projects and the conduct of quarterly LPRAT

or Enhanced LDC meetings shall be included


• The counterpart to be provided must be sourced from LGU funds. This shall be formalized and included by the LGU in its 2015 AIP and annual budget.

•The LGU shall submit a copy of its 2015 AIP and annual budget to the DILG Regional Office to provide evidence that the required counterpart funding has been included in the LGU budget.

Failure to provide counterpart funds in the Appropriation Ordinance authorizing the local

Annual Budget for FY 2015 will result in the non-release of the national government funding for

the city or municipality’s GPB projects.

PROJECT IDENTIFICATION – Negative List-Below P500,000 (they can be proposed as LGU projects to be funded through the LGU counterpart), except for Gulayan sa Paaralan projects under DepEd;

-Expansion of Pantawid Pamilya & Social Pension for Indigent Senior Citizens;

-Housing Projects;-Materials Recovery Facility and Landfills;-Vaccination program and National Health Insurance Program;

-Construction of new school buildings and classrooms, deployment of additional teachers and construction of Rural Health Units;

-Farm-to-market roads;-Projects related to law enforcement, fire protection, and jail management;

-Construction of city/municipal hall, training centers, and other multi-purpose buildings, and procurement of furniture and fixtures;

-Purchase of motor vehicles, except to be used for rescue in times of

disaster; and International trainings/scholarships

PROJECT IMPLEMENTATION Funding for GPB Projects in a city or municipal government shall only be released if the LGU achieves the following:

•Attainment of the Seal of Good Housekeeping (at least Bronze) under the CY 2013 or CY 2014 assessment.

• Submission of the PFM Improvement Plan to DBM and accomplishment of the 2014 targets or undergo the DBM PFM assessment and develop an Improvement Plan, whichever is applicable.

• Required counterpart has been provided in the LGU Annual Budget

• Submission of proper financial and physical accomplishment reports to the concerned NGAs

•Compliance with the intent of Grassroots Budgeting for meaningful participation of CSOs and communities in Grassroots Budgeting.

PROJECT IMPLEMENTATION

• Funding under agencies where LGUs have unliquidated cash advances beyond the reglamentary period will also not be released and the identified GPB projects for FY 2015 will not be implemented.

• LGUs that poorly implement their GPB projects in 2014, as determined by the RPRAT based on guidelines that will be subsequently issued, will not be provided funding for their priority projects under the 2015 GPB Program.

ENHANCED BUB PROCESS

(For Municipalities that haveGraduated from or are currently

Implementation of KALAHI-CIDSS)

VARIANCES IN THE PROCESS

CALENDAR

Activity Responsible Party Period

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

DSWD Area Coordination Teams for KALAHI-CIDSS

Prior to Sept 2013

1 Orientation of the RPRATS DILG PMO Sep

2 Conduct of Civil Society Assemblies

Oct

Nov 22

3 Orientation workshops for LPRATs

RPRATS Nov 1 – 15Jan 16

4 Conduct of LPRAP Workshops / Enhanced LDC and LPRAT meetings

LGUs Nov 16 - Dec 15

Jan 17 – Feb 7

CALENDAR


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

LGUs Dec 16

Feb 14

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

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

RPRAT Jan 20 – 31

Feb 18-19

CALENDAR


8 Convening of NPRAT to review outside of the menu programs

DILG PMO and participating agencies

Jan 20 – 31

9 Submission of accepted and rejected outside of the menu projects to the RPRATs together with revised Menu of Programs

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

Feb 26

CALENDAR


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 Agency Central Offices

Mar 15 - April 14

16

Submission of agency proposed budget to DBM

Participating agencies

April 15

2015 bub

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