Davao bottom up budgeting

BOTTOM--UPBUDGETING (BUB) PROCESS for FY

2016DILG XI

Orientation on

LEGAL BASIS

DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 1

Policy Guidelines and Procedures in the Implementation of Bottom-Up Planning andBudgeting for the FY 2013 Budget Preparation

DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 2

Guidelines for the Implementation and Monitoring of Bottom-Up Budgeting f(BUB) Projects in or the FY 2013

LEGAL BASIS

• DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 3

• Policy Guidelines and Procedures in the Implementation of Bottom-Up Budgeting (BUB) for the FY 2014 Budget Preparation

LEGAL BASIS


• Policy Guidelines and Procedures in the Implementation of Grassroots Participatory Budgeting Process (formerly called Bottom-Up Budgeting) for the FY 2015 Budget Preparation

LEGAL BASIS


• Policy Guidelines and Procedures in the Implementation of Grassroots Participatory Budgeting Process (formerly called Bottom-Up Budgeting) for the Preparation of the FY 2016 Budget and Succeeding Years

LEGAL BASIS


• Policy Guidelines and Procedures in the Implementation of Bottom-Up Budgeting Projects for FY 2015

Concept of Bottom-Up Budgeting

• an approach in formulating budget proposal of National Government Agencies, taking into consideration the development needs of poor municipalities as identified in their respective local anti-poverty action plan formulated with strong participation with civil society organizations

• A process of reshaping national priorities• A process of promoting governance reforms

OBJECTIVES

1. BUDGET REFORM :

- making the national budget more responsive to local needs

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

3. DEMOCRATIC AND EMPOWERMENT PROJECT - creating a conducive environment for people’s participation - generating demand for good governance at the local level

Better Delivery of Public Services,

More Democratic Local Elections, More Efficient

Local Bureaucracy

Core Goal: Empower-ment of the Poor

GPB (BuB) Framework

• Community Empowerment– Empowering communities to

articulate their needs

• LGU-CSO Partnership– Strengthen LGU-CSO partnership

in local development planning and budgeting process

• National – Local Convergence– Local plans and priorities as basis

for national agency programs and budgets

– Convergence among NGA programs

Guiding Principles

Convergence

Participation

Empowermen

t

Empowerment Program Framework

NGAs

LGU

CSOs/BS

Community

Convergence of 15 NGAs projects in 49 LGUs- R XI

Partners in service delivery

Services felt and needs addressed

Priority for funding

Assist in ID of needs of community

Articulate needs of community

COVERAGE - LGUs

2013

National – 609

2014

National 1,233

2015:

National - 1,634

2016:

National - 1,634

Cities & Municipalities

Region XI – 32

Php - 578M

Region XI – 48

Php - 800M

Region XI – 49

Php - ?

2017

Region XI – 49

Php - ?

• 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 National Government Agencies (NGAs)

Allocations per city/ municipality

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

• Minimum of P15 million Maximum of P50 million

BUDGET CAP

HARMONIZATION WITH LOCAL PLANNING PROCESSES

– Two modes of Grassroots Budgeting

• Regular

– LPRAT as a technical working 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 Membership

• Under Regular Grassroots Budgeting, 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

LPRAT Membership

CSOs IDENTIFIED

• Pantawid Pamilya Parent Leaders recognized by DSWD• Leaders from DOH organized Community Health Teams• Leaders of PTA• Leaders of CSOs accredited by LGUs• Leaders of CSOs accredited or recognized by any NGA• Leaders of women’s group• Leaders of basic sector organizations• Leaders of basic sector organizations recognized by NAPC• Leaders of other community or grassroots organization• One of the elected representatives from IP sector

Steps in Regular Grassroots Budgeting

Process

STEP 1

1. Civil Society Assemblies

– Orientation on Grassroots Budgeting

– Election of LPRAT representatives and 3 CSO signatories to the LPRAP (including LPRAT co-chair)

– Report of LCE on status of 2013, 2014 & 2015 GB Projects (if applicable)

– Poverty Situation Analysis

STEP 1

1. Civil Society Assemblies

• Report to be submitted:− Attendance sheet of Assembly;− Pictures during the assembly;− Documentation of election result;

and,− Report on the status of

Grassroots Budgeting projects (if applicable)

STEP 2

2. LPRAT Orientation/LPRAP Workshop

– Orientation on BUB JMC

– LPRAP Workshop

– Multi-year planning (indicative list of projects for 2015 to 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)

STEP 2

2. LPRAT Orientation/LPRAP Workshop

• Report to be submitted:− Executive/Admin. Order on the Creation of

LPRAT− Attendance sheet of Orientation/Workshop;− Pictures during the Orientation-Workshop;− Documentation/Post Activity Report

STEP 33. Submission of List of Priority Projects

and other supporting documents (hard and soft copies)– Cover letter signed by mayor– List of projects using the prescribed 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 GB 2013 projects

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

STEP 4, 5

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

STEP 6, 7, 8

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 GB budget cap

Counterpart Requirements (computation)

A. Municipality B (not part of KALAHI-CIDSS)

GB Budget Cap Allocation P15 MillionKALAHI-CIDSS Grant 0 MillionTotal Funding P15 Million

Local Development Fund P 8 Million

Proportion of GB and KALAHI-CIDSS Funding to LDF:= (GB Cap + KALAHI-CIDSS) / LDF= 15 Million / 8 Million= 187.5%

Required Cash Counterpart:= 20% of LDF= 20% of 8 Million= 1.6 Million

S A M

P L

E

S A M

P L

E

B. Municipality A (part of KALAHI-CIDSS)

Grassroots Budgeting Budget Cap Allocation P15 MillionKALAHI-CIDSS Grant 5 MillionTotal Funding P20 Million Local Development Fund P15 Million Proportion of Grassroots Budgeting and KALAHI-CIDSS Funding to LDF:

= (GB Cap + KALAHI-CIDSS) / LDF= 20 Million / 15 Million= 133%

Required Cash Counterpart:

= 15% of LDF= 15% of 15 Million= 2.25 Million


S A M

P L

E

C. City D

Grassroots Budgeting Budget Cap Allocation: P30 Million

Required Cash Counterpart:= 40% of Budget Cap= 40% of P30 Million= P12 Million


KALAHI-CIDDS AREACOMPOSTELA

VALLEY:

• Compostela• Maco• Maragusan • Mawab• Monkayo• Montevista• Nabunturan• New Bataan• Pantukan

DAVAO DEL NORTE:

• Asuncion• Braulio E. Dujali• Carmen• Kapalong• New Corella• San Isidro

DAVAO DEL SUR

• Don Marcelino

• Jose Abad Santos

• Kiblawan• Magsaysay• Malalag• Malita• Matanao• Santa Cruz• Santa

Maria• Sarangani• Sulop

DAVAO ORIENTAL

• Baganga• BanayBanay• Boston• Caraga• Cateel• Gov

Generoso• Lupon• San Isidro

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 ‘Grassroots Budgeting 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 P500,000.00– Expansion of Pantawid Pamilya, Social

Pension for Indigents Senior Citizens, PhilHEALTH coverage, vaccination programs

– Housing Projects– Materials Recovery and landfills– Vaccination program and National Health

Insurance Program (provided by DOH & PhilHealth

– Construction of school buildings, classrooms and rural health units

– Farm to Market Roads

Project Identification

– 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

Project Identification: NEGATIVE LIST

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 Grassroots Budgeting 2015 budget

• Submission of proper financial and physical accomplishment reports for LGU implemented Grassroots Budgeting 2013, 2014 projects

• Compliance with intent of Grassroots Budgeting for meaningful participation

– Conduct of CSO assembly and LPRAT workshop– Conduct of Quarterly LPRAT meetings

• No unliquidated cash advances• LGUs that poorly implement their Grassroots

Budgeting projects in 2014.

IDENTIFIED PROJECTS WILL NOT BE FUNDED AND WILL NOT BE

IMPLEMENTED IF THESE CONDITIONS ARE NOT MET

Enhanced Grassroots Budgeting 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

Other Requirements

LPRAP Template

Sanggunian Resolution (adopting LPRAP list of priority projects) pro-format

Project Brief Template

Executive Order creating LPRAT

Thank You

Davao bottom up budgeting

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