DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. 4 FO !

"ead# o$ De%artment# &DA' DA ' D(P(D' DO(' D(N ' DO"' DILG' DOL(' DSWD' DO)' D)I and )(SDA* and t+e Admini#trator o$ N(A' All Cit,-Munici%al Ma,or# and Mem.er# o$ t+e San//unian Panlun/#od-Ba,an' and All Ot+er# Concerned POLIC1 G0ID(LIN(S AND P OC(D0 (S IN )"( IMPL(M(N)A)ION OF )"( G ASS OO)S PA )ICIPA)O 1 B0DG()ING P OC(SS &FO M( L1 CALL(D BO))OM-0P B0DG()ING* FO )"( F1 2345 B0DG() P (PA A)ION

S0BJ(C)

1.

S)A)(M(N) OF POLIC1 In pursuit of attaining the Philippine Development Plans goal of inclusive growth and poverty reduction, and promoting good governance at the local level, the Human Development and Poverty Reduction Cluster HDPRC!, through the "rassroots #udgeting $versight %gencies, shall implement the "rassroots Participatory #udgeting Process "rassroots #udgeting!, formerly called #ottom&up #udgeting, to ensure the inclusion of the funding re'uirements for the development needs as they are identified at the local level in the (udget proposals of participating agencies.

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P0 POS( *o provide participating agencies and local government units +",s! with the policy guidelines, processes, responsi(ilities and timelines in the "rassroots #udgeting approach to (e applied in the preparation of the -. )/10 1ational 23penditure Program.

4.

CO6( AG( *his Circular shall cover the following participating agencies5 1ational "overnment %gencies 1"%s!5 Department of %grarian Reform D%R! Department of %griculture D%!
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Department of 2ducation Dep2d! Department of 2nergy D$2! Department of 2nvironment and 1atural Resources D21R! Department of Health D$H! Department of the Interior and +ocal "overnment DI+"! Department of +a(or and 2mployment D$+2! Department of 6ocial 7elfare and Development D67D! Department of *ourism D$*! Department of *rade and Industry D*I! *echnical 2ducation and 68ills Development %uthority *26D%! "overnment $wned and Controlled Corporations "$CCs!5 1ational 2lectrification %dministration 12%! -or Coordination and $versight Department of #udget and 9anagement D#9! DI+" D67D 1ational %nti&Poverty Commission 1%PC! 6ecretariat 1ational 2conomic and Development %uthority 12D%! $ffice of the 1%PC :ice&Chair for the #asic 6ectors #eneficiaries %ll cities and municipalities

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D(FINI)ION OF )( MS ;.1. Ba#ic Sector Or/ani7ation# #6$s! & refer to organi<ations of the marginali<ed sectors of Philippine society, namely5 farmers and landless rural wor8ers, artisanal fisherfol8, formal la(or and migrant wor8ers, wor8ers in the informal sector, indigenous peoples and cultural communities, women, persons with disa(ilities, senior citi<ens, victims of calamities and disasters, youth and students, children, cooperatives, and ur(an poor. ;.). Gra##root# Partici%ator, Bud/etin/ Proce## or Gra##root# Bud/etin/ &$ormerl, called Bottom-0% Bud/etin/* & an approach to preparing the (udget proposal of agencies, ta8ing into consideration the development needs of cities=municipalities as identified in their respective local poverty reduction action plans that shall (e formulated with strong participation of (asic sector organi<ations and other civil society organi<ations.
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;.4. Ci8il Societ, Or/ani7ation# &CSO#* > include non&government organi<ations 1"$s!, People?s $rgani<ations P$s!, (asic sector organi<ations, cooperatives, trade unions, professional associations, faith&(ased organi<ations, media groups, indigenous peoples movements, foundations, and other citi<ens groups which are non&profit and are formed primarily for social and economic development to plan and monitor government programs and pro@ects, engage in policy discussions, and actively participate in colla(orative activities with the government. ;.;. Ci8il Societ, A##em.l, 9 an inclusive meeting of all C6$s, P$s, community=grassroots organi<ations facilitated (y DI+" at the municipal level, with the support of D67D and 1%PC where present!, to gather, analy<e and share results of poverty situation and other local poverty data in their locality, identify strategies to address poverty and present them to the +ocal Development Council or the +ocal Poverty Reduction %ction *eam +PR%*!, and local special (odies. C6$s shall also (e oriented on their role in local governance and select C6$ representatives to the +PR%*. ;.0. Local Po8ert, eduction Action Plan &LP AP* > the +", plan which contains programs and pro@ects collectively drawn through a participatory process (y the +", with C6$s and other sta8eholders, and which will directly address the needs of the poor constituencies and the marginali<ed sectors in the city or municipality. ;.A. Local Po8ert, eduction Action )eam &LP A)* > the group to spearhead the formulation and monitoring of the +PR%P. ,nder the Regular "rassroots #udgeting Process, the +PR%* shall (e composed of the following mem(ers5 Chairperson5 +ocal Chief 23ecutive +C2! Co&Chairperson5 % C6$ representative 9em(ers5 Representatives from "overnment, to wit5 6angguniang Panlungsod=#ayan 9em(er who is the Chairperson of the Committee on %ppropriationB %ll local government department heads such as the Planning $fficer, #udget $fficer, -ishery and %griculture $fficer, 6ocial 7elfare and Development
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$fficer, Health $fficer, Community, 2nvironment and 1atural Resource 9anagement $fficer C21R$! and Pu(lic 2mployment 6ervice $ffice P26$! 9anagerB Representatives of 1"%s such as the D67D municipal lin8s, the DI+" City=9unicipal +ocal "overnment $perations $fficer, the 6chool District 6upervisor and %grarian Reform $fficerB and

Representatives from C6$s must (e residents of the city or municipality!, that can come from the following groups=organi<ations5 Pantawid Pamilya Parent&+eaders recogni<ed (y D67DB +eaders from D$H organi<ed Community Health *eamsB +eaders of the Parent&*eacher %ssociationsB +eader of C6$s accredited (y +",sB +eaders of C6$s accredited or recogni<ed (y any 1"%B +eaders of a womens groupB +eaders of a (asic sector organi<ationB +eaders of a (asic sector organi<ation recogni<ed (y 1%PCB +eaders of other community or grassroots organi<ationsB In cities=municipalities where Indigenous Peoples comprise over twenty&percent )/C! of the population, one of the elected representatives must come from the IP sector. D2lected officials, their immediate relatives spouse, parent, si(ling, child!, and +", employees are ineligi(le to (e elected as C6$ representatives.EB and % representative from association 9unicipalities that have graduated from or are currently implementing the F%+%HI&CID66 Program shall undergo the 2nhanced "rassroots #udgeting Process, wherein the +PR%* shall perform its functions as the technical wor8ing group of the 2nhanced +ocal Development Council +DC!. It shall (e composed of the following mem(ers5
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a local (usiness

group

or

1/ representatives from government may come from government mem(ers or o(servers of the 2nhanced +DC! 0 #arangay Development Council :ice&Chairpersons selected through the F%+%HI&CID66 program 0 C6$ representatives in the 2nhanced +DC who are elected during the C6$ assem(ly

*he +PR%* under the Regular or 2nhanced "rassroots #udgeting Process shall always (e composed of an e'ual num(er of government including the +C2! and non&government representatives. %ll C6$ representatives should (e residents of the city=municipality. *he +PR%* should also (e composed of at least ;/C women. ;.G. 2nhanced +ocal Development Council > refers to the +ocal Development Council +DC! with an e3panded mem(ership to include the regular mem(ers of the +DC with the addition of all the :ice&Chairs of the #arangay Development Councils who are to (e elected from among the F%+%HI&CID66 community volunteers. Chairperson5 +ocal Chief 23ecutive +C2! :ice&Chairperson5 % C6$ representative 9em(ers5 Representatives from "overnment, to wit5 %ll punong (arangays in the city or municipality Chairperson of the Committee on %ppropriation of the 6angguniang Panlungsod=#ayan District Representative or his=her representative Representatives from Civil 6ociety $rgani<ations and Communities, to wit5 %ll :ice&chairs of the (arangay development councils elected through the F%+%HI&CID66 program! %t least five C6$ representatives elected (y C6$s during the C6$ assem(ly D2lected officials, their immediate relatives spouse, parent, si(ling, child!, and +", employees are ineligi(le to (e elected as C6$ representatives.E % representative from association
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a local (usiness

group

or

*he 2nhanced +DC shall (e composed of at least ;/C women. %ll local government department heads such as the Planning $fficer, #udget $fficer, %griculture $fficer, 6ocial 7elfare and Development $fficer, Health $fficer and Peso 9anager and representatives of national government agencies 1"%s! such as the D67D municipal lin8s, F%+%HI&CID66 %rea Coordinator, the DI+" City=9unicipal +ocal "overnment $perations $fficer, the school district supervisor and %grarian Reform $fficer shall (e invited to sit as o(servers and resource persons in the 2nhanced +DC. ;.H. :ALA"I-CIDSS & refers to the Fapit #isig +a(an sa Fahirapan & Comprehensive and Integrated Delivery of 6ocial 6ervices. which is a poverty reduction program of D67D. It see8s to empower poor communities to have (etter access to 'uality (asic services and to participate in more inclusive local planning, (udgeting, and implementation at the (arangay level. ;.I. National Po8ert, eduction Action )eam - the group that shall discuss and address policy and implementation issues and provide guidance to the RPR%*s throughout the "rassroots #udgeting process. It shall (e chaired (y DI+" and composed of representatives from all "rassroots #udgeting oversight and participating agencies. ;.1/. Parent Leader# > Pantawid Pamilyang Pilipino Program ;Ps! grantees chosen (y their co&grantees=fellow parents to lead a cluster of family&grantees. *heir role and function is to ensure the compliance to the conditionalities of the ;Ps program (y the grantees. *hey preside over meetings during community assem(liesB disseminate information and updates, follow& up=monitor commitment, and compliance to conditionalities on health and education. *hey also act as the (ridge of the community in communicating to the municipal lin8 assigned in the area and to other sta8eholders in the municipality or city. ;.11. Partici%atin/ A/encie# > refers to the twelve 1)! 1"%s D%R, D%, Dep2d, D$2, D21R, D$H, DI+", D$+2, D67D, D*I, D$* and *26D%! and 12% through which funding for "rassroots #udgeting programs will (e allocated.

;.1). Pu.lic Financial Mana/ement Im%ro8ement Plan - refers to the set of programs=pro@ects=activities PP%s! that will (e underta8en (y the +", to address the areas in Pu(lic -inancial 9anagement P-9! that need to (e further improved and=or sustained (ased on the assessment (y the +", of the different critical dimensions of an open and orderly P-9 system provided under the P-9 %ssessment *ool for +",s. ;.14. e/ional Po8ert, eduction Action )eam# & P A)#* > the group that shall provide support and guidance to +",s throughout the "rassroots #udgeting process and monitor the implementation of the "rassroots #udgeting Pro@ects, composed of the following5 Chairperson 5 :ice&Chairperson 5 DI+" Regional Director D#9 Regional Director

9em(ers 5 Regional Directors of D%, D%R, D21R, D$H, D2P2D, D$+2, D67D, D*I, D$*, 12D% and *26D% Representatives from D$2 and 12% *he provincial C6$ representative as elected in the process facilitated (y 1%PC *his does not refer to the elected mem(ers of the (asic sector councils of 1%PC at the national level.!

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"A MONI;A)ION OF )"( G ASS OO)S B0DG()ING' D(6(LOPM(N) PLANNING

PLANNING P OC(SS(S FO :ALA"I-CIDSS AND LOCAL

0.1. *he harmoni<ation of the planning processes (eing underta8en for "rassroots #udgeting, F%+%HI&CID66 and +ocal "overnment Development Planning will (e implemented in two modalities. 0.1.1. *he first mode will institutionali<e the +PR%* as a committee of the local development council. *his will (e referred to as the regular "rassroots #udgeting process which will (e implemented in all cities and municipalities that have not yet participated in the F%+%HI&CID66 program. In situations wherein the local development council does not meet regularly or is not functional, the +PR%* may (e constituted independently from the +DC.
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0.1.). *he second mode will integrate the "rassroots #udgeting Process into the processes of the local development council. It will also integrate (arangay level planning into the city=municipal level planning process. *his process will (e referred to as the Enhanced Grassroots Budgeting Process. It will (e implemented in all two hundred seventy one )G1! municipalities that have graduated from or are currently implementing the F%+%HI&CID66 Program. *he list of municipalities that shall undergo the 2nhanced "rassroots #udgeting Process can (e found in %nne3 %. 0.). +ocal government units that do not adopt the regular or 2nhanced "R%66R$$*6 #,D"2*I1" Process, whichever is applica(le, in their local development planning process will not (e eligi(le to participate in the "rassroots #udgeting, F%+%HI&CID66 and 1ational Community Driven Development Program 1CDDP! for -. )/10.

A.

G0ID(LIN(S FO LOCAL L(6(L M0NICIPALI)I(S P OC(SS*

F1 2345 B0DG() P (PA A)ION A) )"( IN NON-:ALA"I-CIDSS CI)I(S AND & (G0LA G ASS OO)S B0DG()ING

*he following processes shall serve as the main components to implement "rassroots #udgeting in non&F%+%HI&CID66 cities and municipalities5 1! C6$ assem(lies, )! +PR%P 7or8shops, 4! 6u(mission of the list of priority pro@ects to the DI+" Regional $ffice R$!, ;! Consolidation of the pro@ects (y the DI+" R$, 0! :alidation of pro@ects (y the RPR%* and the 1PR%*, A! 6u(mission of the revised list of priority pro@ects together with a 6anggunian Resolution to the DI+" R$, G! Integration of the +", pro@ects in the (udgets of participating agencies, H! Provision of +", Counterpart and I! Pro@ect Implementation. A.1. Conduct of Civil Society General Assembly. DI+" will convene the general assem(ly of C6$s at the city=municipal level to select C6$ representatives in the +PR%*. *o ensure (road participation of C6$s, 1%PC and D67D shall assist DI+" in convening the general assem(ly. *he +C2 and=or City=9unicipal Planning Development Coordinator C=9PDC! shall also (e invited to o(serve in the C6$ assem(ly. A.1.1. Orientation. DI+" shall give an orientation to C6$s on local governance, highlighting the role of C6$s in +ocal Development Councils +DCs! and +ocal 6pecial #odies +6#s!, as well as e3plain the rationale for and process of "rassroots #udgeting.
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A.1.). Election of LPRA re!resentatives. *he C6$s shall independently select the organi<ations that will represent C6$s in the +PR%*. 2lected officials, their immediate relatives spouse, parent, si(ling, child!, and +", employees are ineligi(le to (e elected as C6$ representatives. *he assem(ly will also elect a representative among the C6$ representatives to serve as +PR%* co&chair *he +C2 or the C=9PDC shall not influence the election of the C6$ representatives during the C6$ assem(ly *he num(er of C6$ representatives in the +PR%* shall e'ual the num(er of government representatives.

A.1.4. Selection of the LPRA co"chair!erson and CSO signatories of the LPRAP. *he elected C6$ representatives shall also elect among themselves the co&chair of the +PR%* or the vice&chair in the case of 2nhanced +DCs! and the two other C6$ representatives who will sign the +PR%P. *he three signatories must include5 a Pantawid Pamilya parent leader, the selection of whom shall (e facilitated (y the D67D municipal lin8 If the city or municipality has no Pantawid Pamilya (eneficiaries, a Parent *eacher %ssociation representative can serve as an alternative!B a representative from a (asic sector organi<ation or cooperative of any of the following sectors5 farmers and landless rural wor8ers, artisanal fisherfol8, formal la(or and migrant wor8ers, wor8ers in the informal sector, indigenous peoples and cultural communities, women, persons with disa(ilities, senior citi<ens, victims of calamities and disasters, youth and students, children, or ur(an poor, the selection of which shall (e facilitated (y the +PR%P facilitator to (e identified (y DI+"B and a third C6$ representative who is a mem(er of the city or municipal local development council.

A.1.;. Re!orting on the a!!roved list of #$%& Grassroots Budgeting Pro'ects and their status of im!lementation. *he DI+" City or 9unicipal +ocal "overnment $perations $fficer 9+"$$! shall report on the status of the "rassroots #udgeting )/14 Pro@ects and the approved list of )/1; "rassroots #udgeting Pro@ects during the C6$ %ssem(ly. A.1.0. Poverty Situation Analysis. %fter the selection of representatives, the assem(ly should review, validate and
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analy<e social and economic data of the city=municipality and propose solutions to its concerns and pro(lems. *he City=9unicipal Planning and Development Coordinators C=9PDC!, with the local finance committee +-C! and other department heads of the +",, will provide technical assistance to the C6$ assem(ly in doing the local poverty situation analysis. *hese include presentation of updated, consolidated, relevant social and economic data. A.). Conduct of LPRAP (or)sho!. *he conduct of the +PR%P wor8shop shall (e guided (y modules which will (e provided (y DI+" to all 9+"$$s and 9PDCs. A.).1. *he +C2 shall constitute or reconstitute the +PR%* (ased on the mem(ers as identified in 6ection ;.A and (ased on the process underta8en pursuant to 6ection A.1. *he +C2 must ensure the active participation of the elected C6$ representatives in the +PR%* during the +PR%P wor8shop. A.).). *he RPR%* shall provide technical assistance to the +PR%*s in the formulation of the +PR%P. *he DI+" R$ shall ensure that at least one mem(er of the RPR%* or representatives of participating agency regional offices will participate in each +PR%P 7or8shop. A.).4. *he "rassroots #udgeting Pro@ect 9anagement $ffice P9$!, housed within DI+", may also deploy mentors=facilitators in coordination with the RPR%* to assist selected +PR%*s in the conduct of the +PR%P wor8shop to ensure that an ade'uate poverty analysis (e done (efore identifying poverty reduction strategies. A.).;. *he C=9PDC with the assistance of the local finance committee +-C! and other department heads of the +",, shall present the poverty situation of the city=municipality for validation of the +PR%*. A.).0. *he +PR%* shall identify the specific poverty reduction strategies to (e underta8en (y the +", and other sta8eholders, including the national agencies, and incorporate the same in the +PR%P. Identification of strategies should (e (ased on the results of the poverty situational analysis. A.).A. *he +PR%* shall also identify priority poverty reduction pro@ects through a consensus among its mem(ers. If consensus cannot (e reached, the decision will (e made through a ma@ority vote. *he list of priority pro@ects will (e su(mitted to the national government for funding consideration in its proposed -. )/10 (udget, using the format provided in %nne3 #&1.
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A.).G. % multi&year planning approach shall (e underta8en for "rassroots #udgeting to come up with a more comprehensive plan to address poverty and to identify poverty reduction pro@ects that will have a greater impact. *he +PR%*s shall also identify the list of priority pro@ects for -.s )/1A and )/1G which should (e included in the list of priority pro@ects to (e su(mitted. A.).H. %ll pro@ects that will (e su(mitted to the national government for funding must contri(ute to the following national government priorities5 Provision of #asic 6ocial 6ervices and %ttainment of the 9illennium Development "oals, including poverty reductionB Hunger 9itigation and 2liminationB Jo( "eneration and Inclusive +ocal 2conomic DevelopmentB and Climate Change %daptation=9itigation and Disaster Preparedness A.).I. *he following pro@ects shall 1$* (e proposed as "rassroots #udgeting Pro@ects5 Pro@ects (elow $i8e +undred t+ou#and %e#o# such pro@ects cannot (e funded (y national government, however, they can (e proposed as +", implemented pro@ects to (e funded through the +", counterpart for "rassroots #udgeting!, e<ce%t $or Gula,an #a Paaralan %ro=ect# under De%(d> 23pansion of Pantawid Pamilya Program (eneficiaries since identification of (eneficiaries is done through 1H*6! and 6ocial Pension for Indigent 6enior Citi<ensB Housing Pro@ects due to the su(stantial cost re'uirementB such pro@ects should (e re'uested from 1H%=1H9-C which have the necessary funding!B 9aterials Recovery -acility and +andfillsB :accination program and 1ational Health Insurance Program since universal coverage is already provided (y D$H and PhilHealth!B Construction of new school (uildings and classrooms, deployment of additional teachers and construction of Rural Health ,nits since this will (e provided for in the -. )/14 and )/1; 1ational #udget!B -arm&to&mar8et roads since networ8 plans will (e re'uired for such and current standards for -9Rs will (e too costly given availa(le "rassroots #udgeting funding! Pro@ects related to law enforcement, fire protection, and @ail management since these are not poverty reduction pro@ects!B
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Construction of city=municipal hall, training centers, and other multi&purpose (uildings, and procurement of furniture and fi3tures, since these are not poverty reduction pro@ects!B Purchase of motor vehicles i.e. am(ulances, truc8s, fire truc8s, vehicles to (e used for monitoring purposes!, e3cept for those to (e used for rescue in times of disasterB and International trainings=scholarships

A.).1/. In identifying priority pro@ects, the +PR%* must allocate at least eighty percent H/C! of their (udget cap for pro@ects included in the 9enu of Programs attached as %nne3 D. A.).11. ,p to twenty percent )/C! of their (udget cap may (e allocated for new programs proposed (y the +PR%* in accordance with 6ection A.).H and A.).I. If none, proposals will (e one hundred percent 1//C! included in the 9enu of Programs. A.).1). *otal funding for proposed priority poverty reduction pro@ects re'uested (y each city and municipality from national government shall not e3ceed the cap set for each of them as indicated in %nne3 %. *he same (udget cap will (e used for -.s )/10, )/1A and )/1G. A.4. Submission of the List of Priority Poverty Reduction Pro'ects. *he list of priority poverty reduction pro@ects duly endorsed (y the +PR%* shall (e su(mitted to the RPR%* through the DI+" R$ (y Decem.er 4?' 234@. A.4.1. *he su(mission should include5 Cover letter signed (y the city = municipal mayorB +ist of Priority Pro@ects for -. )/10 and indicative pro@ects for -.s )/1A and )/1G, using the attached format %nne3 #&1! and with all pages signed (y the 4 C6$ representatives identified in 6ection A.1.4B and Pro@ect (rief for each proposed pro@ect using template in %nne3 C! Report on compliance with the re'uired participatory processes under "rassroots #udgeting as detailed in 6ection A.;.4 A.;.) *he list of priority pro@ects that will (e su(mitted must (e signed (y the three elected C6$ mem(ers of the +PR%* on every page.

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A.;.4 *he report on compliance with the re'uired "rassroots #udgeting participatory processes shall include the following documents5 C$1DI*I$1 Conduct of C6$ assem(ly and election of C6$ representatives D$C,921*%R. 2:ID21C2 & %ttendance sheet of C6$ assem(lyB & Photo of participants of C6$ assem(lyB & Documentation of 2lection Results &+", report on status of "rassroots #udgeting pro@ects, including +", implemented pro@ects & Photo of +PR%P wor8shop participantsB & 9inutes of the C6$ assem(ly or attendance sheet of +PR%P wor8shop

Conduct of +PR%P wor8shops

A.;.; Bot+ %rinted and electronic co%ie# o$ t+e#e document# #+ould .e #u.mitted to the DI+" R$. 2lectronic copies should (e su(mitted through e&mail. *he list of priority pro@ects must (e su(mitted in (oth PD- and word=e3cel format. A.;. Consolidation of the List of Priority Poverty Reduction Pro'ects by Region > the list of priority poverty reduction pro@ects will (e consolidated (y the DI+" R$, which will then provide the consolidated list to all mem(ers of the RPR%*s and to 1%PC (y Decem.er 2@' 234@. Copies of the list of priority pro@ects, including all attachments su(mitted (y the +PR%*s should also (e forwarded to 1%PC on this date. A.0. *alidation+ revie, and revision of Priority Poverty Reduction Pro'ects A.0.1. *he DI+" Regional Director shall convene the RPR%* to review and validate the proposed pro@ects which are included in the 9enu of Programs. *he RPR%* shall also identify the appropriate implementing agency for each pro@ect. A.0.). % 1ational Poverty Reduction %ction *eam 1PR%*! composed of the "rassroots #udgeting oversight and participating agencies will (e convened (y the "rassroots #udgeting P9$ to review and validate proposed pro@ects outside the 9enu of Programs.

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1%PC shall provide all mem(ers of the 1PR%* with a copy of the list of proposed pro@ects outside the 9enu of Programs. *he 1PR%* will identify new programs to (e esta(lished to cater to identified needs not addressed (y current programs. It shall also recommend an agency to implement such a program. It shall also provide RPR%* with information on these new programs, to guide them in the replacement of pro@ects that have not (een accepted (y national government.

A.0.4. *he RPR%* shall meet with the duly authori<ed +PR%* representatives e'ual num(er of government and C6$ representatives! to inform them a(out their proposed pro@ects which have not (een accepted (y the RPR%* and the 1PR%* and to select replacement pro@ects. A.A. Submission of revised list of !riority !ro'ects. *he +PR%* shall su(mit its revised list of priority poverty reduction pro@ects, with all pages signed (y the 4 C6$ representatives identified in 6ection A.1.), together with pro@ect (riefs for each pro@ect, to the DI+" R$ (y Fe.ruar, 2A' 2344. *he su(mission shall include a 6angguniang Panlungsod=#ayan Resolution adopting the revised list of priority pro@ects. % sample resolution is attached as %nne3 2. A.A.1. *he RPR%* must ensure that re@ected pro@ects are replaced (efore su(mission of the final list of "rassroots #udgeting Pro@ects to 1%PC and the Regional Development Council RDC!. A.A.). *he RPR%*, through the DI+" R$, shall then su(mit the revised list of validated "rassroots #udgeting Pro@ects to 1%PC, the RDC and all cities and municipalities (y Marc+ B' 2344. A.A.4. 1%PC shall in turn consolidate all the su(missions of the RPR%* and forward it to all participating %gency Central $ffices %C$s! (y Marc+ 44' 2344. A.G. -ntegration of the LG. !ro'ects in the budgets of !artici!ating agencies. *he %C$s shall review and integrate in their proposed (udget for -.)/10 all "rassroots #udgeting pro@ects that have (een su(mitted to them. A.G.1. Pro@ects under the 9enu of Programs shall (e included in the Kwithin ceilingL (udget proposal while pro@ects outside of the menu will (e included in the Ka(ove the ceilingL (udget proposal.

1;

A.G.). %ll agencies should ensure that "rassroots #udgeting Pro@ects are not duplicated in their regular programs, in the P%9%1% program or in the %R99 6timulus -und. A.H. A.I. G. Provision of LG. Counter!art. 6ee 6ection H. Pro'ect -m!lementation. 6ee 6ection I.

G0ID(LIN(S FO F1 2345 B0DG() P (PA A)ION A) )"( LOCAL L(6(L IN :ALA"I-CIDSS CI)I(S AND M0NICIPALI)I(S &(N"ANC(D G ASS OO)S B0DG()ING P OC(SS* 9unicipalities that have graduated from or are currently implementing the F%+%HI&CID66 Program see %nne3 % for the list of municipalities! will have to follow the 2nhanced "rassroots #udgeting Process. ,nder this process, the following modifications are made to the regular "rassroots #udgeting Process5 a! Integration of Participatory #arangay Development Planning and (! 2nhancement of the composition of the +ocal Development Council. *he detailed steps for the 2nhanced "rassroots #udgeting Process is provided under %nne3 -. G.1. -ntegration of Partici!atory Barangay /evelo!ment Planning. Prior to the conduct of C6$ assem(lies at the municipal level, D67D with support from DI+" shall facilitate the conduct of participatory (arangay development planning in all (arangays in municipalities with F%+%HI&CID66. G.). -ntegration of the LPRA into the Enhanced Local /evelo!ment Council 0L/C1 structure. *he +C2 shall convene the 2nhanced +DC to approve the +PR%P, the Comprehensive Development Plan CDP!, +ocal Development Investment Plan +DIP!, 23ecutive&+egislative %genda 2+%! and %nnual Investment Plan %IP!, and identify the priority poverty reduction pro@ects to (e funded (y "rassroots #udgeting, 1CDDP and the +",. *o ma8e the planning more managea(le, the 2nhanced +DC shall constitute an +PR%* to serve as its technical wor8ing group, which shall underta8e the formulation of the plans and present it for the approval of the 2nhanced +DC. G.).1. *he 2nhanced +DC shall include the vice&chairpersons of all (arangay #DCs, who are selected from the F%+%HI&CID66 community representatives in the #arangay Development Council. Its composition shall (e consistent with 6ection ;.G. *he 2nhanced +DC shall have the following structure5

10

G.).). *he 2nhanced +DC shall form an +PR%* to serve as its technical wor8ing group. *he +PR%* shall draft the plans, including the identified priority poverty reduction pro@ects. It shall (e composed of )/ mem(ers of or o(servers in the +DC5 1/ coming from government may include o(servers in the +DC!, 0 from the #DC :ice&Chairpersons, selected (y them from among themselves, and 0 from the C6$ representatives elected during the C6$ assem(ly.

G.).4. -or municipalities that have already reconstituted and convened their +DCs after the 9ay )/14 elections, C6$ representatives who sit in the newly reconstituted +DC and +6# shall (e recogni<ed so long as they were elected in a C6$ assem(ly conducted after June 4/, )/14 and (efore the issuance of this J9C and so long as the re'uirements and the procedures provided for (y law and (y the applica(le guidelines of DI+" were fully complied with. *he #DC :ice&chairs shall (e added to the composition of the 2nhanced +DC. -urther, such municipalities may still decide to change the C6$ representatives in the newly reconstituted +DC and +6#s following the provisions of this J9C upon approval of the J9C. *he DI+" may re'uire any such city=municipality to change the C6$ representatives in the newly reconstituted +DC and +6#s following the provision of this J9C if it finds that the re'uirements and procedures provided (y law and (y applica(le DI+" guidelines were not fully complied with in the reconstitution of their +DC and +6#s.

1A

*he :ice&Chairs of #arangay Development Councils identified through F%+%HI&CID66 shall (e added to the mem(ership of the e3isting +DC.

G.4. %nne3 - provides a step&(y&step e3planation of the 2nhanced "rassroots #udgeting Process. H. CO0N)( PA ) (C0I (M(N)S

H.1. +",s must provide a percentage of their +ocal Development -und +D-! as cash counterpart for the "rassroots #udgeting program. -or +",s which are also part of the F%+%HI&CID66=1CDDP program, the "rassroots #udgeting and the F%+%HI&CID66=1CDDP program will have a common and com(ined cash counterpart re'uirement. H.). *he percentage shall (e (ased on the proportion of the "R%66R$$*6 #,D"2*I1" and F%+%HI&CID66 funding provided to the +D- as follows5 Re'uired Counterpart Cash

9unicipalities #ased on proportion of "rassroots #udgeting and F%+%HI&CID66 funding to +D-! ,p to 1//C of the +D1/C of the +D$ver 1//C up to 10/C of 10C of the +Dthe +D$ver 10/C of the +D)/C of the +D%ll Cities ;/C of the #udget Cap
M*he re'uired counterpart for each +",s is detailed in %nne3 %.

6ample Computation5
9unicipality % part of F%+%HI&CID66! "rassroots #udgeting #udget Cap %llocation P10 9illion F%+%HI&CID66 "rant 0 9illion *otal -unding P)/ 9illion +ocal Development -und P10 9illion

Proportion of "rassroots #udgeting and F%+%HI&CID66 -unding to +D-5 N "rassroots #udgeting Cap O F%+%HI&CID66! = +DN )/ 9illion = 10 9illion N 144C eDuired Ca#+ Counter%art! N 10C of +DN 10C of 10 9illion N 2.25 Million

1G

9unicipality # not part of F%+%HI&CID66! "rassroots #udgeting #udget Cap %llocation P10 9illion F%+%HI&CID66 "rant / 9illion *otal -unding P10 9illion +ocal Development -und P H 9illion

Proportion of "rassroots #udgeting and F%+%HI&CID66 -unding to +D-5 N "rassroots #udgeting Cap O F%+%HI&CID66! = +DN 10 9illion = H 9illion N 1HG.0C eDuired Ca#+ Counter%art! N )/C of +DN )/C of H 9illion N 4.? Million City % "rassroots #udgeting #udget Cap %llocation5 P4/ 9illion eDuired Ca#+ Counter%art! N ;/C of #udget Cap N ;/C of P4/ 9illion N P42 Million

H.4. -or +",s not included in the F%+%HI&CID66 program, the counterpart will (e solely (ased on their "rassroots #udgeting #udget cap allocation. H.;. -or +",s currently undergoing F%+%HI&CID66 program, additional non&cash counterpart shall (e re'uired from the +ocal "overnment ,nits as provided for in the F%+%HI&CID66 1CDDP Community -inance 9anual. H.0. *he "rassroots #udgeting Counterpart -unds from the +", shall (e added to the funding availa(le for "rassroots #udgeting Pro@ects. Its use shall (e determined (y the +PR%* or the 2nhanced +DC, whichever may (e applica(le, provided that funds for monitoring and evaluation of "rassroots #udgeting Pro@ects and the conduct of 'uarterly +PR%* or 2nhanced +DC meetings shall (e included. H.0.1. Counterpart funding need not (e allocated on a per pro@ect (asis. Identified counterpart funds may (e used to fund pro@ects that are 1//C funded (y the local government unit. H.0.). 1ational programs that re'uire a counterpart, as indicated in the 9enu of Programs, shall (e included as part of the +", counterpart. H.A. *he counterpart to (e provided must (e sourced from +", funds. *his shall (e formali<ed and included (y the +", in its )/10 %IP and annual (udget.
1H

H.A.1. *he +", shall su(mit a copy of its )/10 %IP and annual (udget to the DI+" Regional $ffice to provide evidence that the re'uired counterpart funding has (een included in the +", (udget. H.A.). -ailure to provide counterpart funds in the %ppropriation $rdinance authori<ing the local %nnual #udget for -. )/10 will result in the non&release of the national government funding for the city or municipalitys "rassroots #udgeting pro@ects. H.G. 6pecific guidelines governing the computation, mo(ili<ation, use and accounting and reporting of +ocal Counterpart -unds under the 2nhanced "rassroots #udgeting process shall (e issued (y the D67D within 4/ days of the issuance of these guidelines. H.H. Pro@ects to (e funded out of the local government counterpart should (e consistent with the DI+"&D#9 Joint 9emo Circular )/11&1 dated %pril 14, )/11 on the %mended "uidelines on the %ppropriation and ,tili<ation of the )/C of the %nnual Internal Revenue %llotment for Development Pro@ects. H.H.1. *he cost for the operation of the +PR%* or the 2nhanced +DC, vis&a&vis its role in crafting the +PR%P and monitoring=evaluating its implementation including meeting and travel costs! may (e shouldered through the +", counterpart. I. P OJ(C) IMPL(M(N)A)ION I.1. -unding for "rassroots #udgeting Pro@ects in a city or municipal government shall only (e released if the +", achieves the following5 I.1.1. %ttainment of the 6eal of "ood House8eeping #ron<e! under the C. )/14 or C. )/1; assessmentB at least

I.1.). 6u(mission of the P-9 Improvement Plan to D#9 and accomplishment of the )/1; targets or undergo the D#9 P-9 assessment and develop an Improvement Plan, whichever is applica(leB I.1.4. Re'uired counterpart has (een provided in the +", %nnual #udgetB and I.1.;. 6u(mission of proper financial and physical accomplishment reports to the concerned 1"%s for +", implemented -.)/1; "rassroots #udgeting Pro@ects!.
1I

I.1.0. Compliance with the intent of "rassroots #udgeting for meaningful participation of C6$s and communities in "rassroots #udgeting. *his includes5 conduct of C6$ assem(ly and election of C6$ representatives in the +PR%* or in the 2nhanced +DC, conduct of participatory planning through the +PR%P wor8shops or through 2nhanced +DC meetings!, and conduct of 'uarterly +PR%* or 2nhanced +DC meetings to report on the status of "rassroots #udgeting pro@ects I.). -unding under agencies where +",s have unli'uidated cash advances (eyond the reglamentary period will also not (e released and the identified "rassroots #udgeting pro@ects for -. )/10 will not (e implemented. I.4. +",s that poorly implement their "rassroots #udgeting pro@ects in )/1;, as determined (y the RPR%* (ased on guidelines that will (e su(se'uently issued, will not (e provided funding for their priority pro@ects under the )/10 "rassroots #udgeting Program. 1/. OL(S AND (SPONSIBILI)I(S

1/.1.

*he LC( shall! $rgani<e and convene the +PR%* or the 2nhanced +DCB

1/.1.1.

1/.1.). 9a8e availa(le information and data sets a(out unmet needs, the CDP, +DIP, 2+% and %IPB 1/.1.4. 2nsure the conduct of +PR%P wor8shop=s or 2nhanced +DC meetings with strong C6$ and (asic sector participation and ensure that only pro@ect proposals included in the +PR%P and prioriti<ed (y the +PR%* are su(mitted to the RPR%*B 1/.1.;. 2nsure the conduct of 'uarterly +PR%* or 2nhanced +DC meetingsB and 1/.1.0. 9o(ili<e the +", to comply with the re'uirements of the DI+"s 6eal of "ood House8eeping, undergo the P-9 assessment if not yet underta8en!, and develop and implement a P-9 Improvement Plan.

)/

1/.). *he LP A) for the Regular "rassroots #udgeting Process! shall 5 1/.).1. $rgani<e and facilitate the conduct of a +ocal Poverty Reduction %ction Planning wor8shop for the formulation of the +PR%P and the identification of priority poverty reduction pro@ectsB 1/.).). %gree on a list of priority poverty reduction pro@ects for -.)/10 (ased on a thorough poverty analysis and su(mit the +PR%P to the RPR%* using the template provided in %nne3 #&)B and 1/.).4. Conduct 'uarterly meetings to monitor the status of the approval and integration of the priority poverty reduction pro@ects into the (udgets of participating agencies and monitor the implementation and status of the pro@ects. 1/.4. *he (n+anced LDC for the 2nhanced "rassroots #udgeting Process! shall 5 1/.4.1. $rgani<e and facilitate the conduct of planning wor8shops for the formulation or the updating of the CDP, +DIP, and identification of priority poverty reduction pro@ectsB 1/.4.). Create an +PR%* to serve as its technical wor8ing group in the initial preparation of the CDP, +DIP and identification of poverty reduction pro@ectsB 1/.4.4. %gree on a list of priority poverty reduction pro@ects for -.)/10 (ased on a thorough poverty analysis and su(mit the +PR%P to the RPR%* using the template provided in %nne3 #&)B and 1/.4.;. Conduct 'uarterly meetings to monitor the status of the approval and integration of the priority poverty reduction pro@ects into the (udgets of participating agencies and monitor the implementation and status of the pro@ects. 1/.;. *he San//unian/ Panlun/#od-Ba,an shall5

1/.;.1. %ccredit all local C6$s, including those recogni<ed (y any national government agency such as #asic 6ector $rgani<ations recogni<ed (y 1%PC and volunteer groups in the F%+%HI&CID66 programB and 1/.;.). Review and adopt the +ist of Priority Poverty Reduction Pro@ects to (e su(mitted to the RPR%*. It shall pass a 6anggunian Resolution using the prescri(ed form see %nne3 2! endorsing the list of priority poverty reduction pro@ects.
)1

1/.0. *he CSO mem.er# o$ t+e LP A) or t+e (n+anced LDC shall5 1/.0.1. %ctively participate in the formulation of +PR%P and identification of the priority poverty reduction pro@ectsB 1/.0.). *hrough their elected representatives identified in 6ection A.1.), endorse the +PR%P and list of priority poverty reduction pro@ects for approval of the 6angguniang Panlungsod=#ayanB 1/.0.4. %dvocate for the local sanggunian?s adoption of the list of priority poverty reduction pro@ects, when necessaryB and 1/.0.;. Remind and demand that the +C2 convene the 'uarterly meeting to report on the status of the implementation of the priority poverty reduction pro@ects so that they can monitor the implementation of the pro@ects. *hey may also underta8e monitoring activities independent of the +",. 1/.A. *he Area Coordination )eam# o$ :ALA"I-CIDSS shall5

1/.A.1. -acilitate (arangay level processes for municipalities underta8ing the 2nhanced "rassroots #udgeting ProcessB 1/.A.). Conduct orientation wor8shops for the +PR%* of focus municipalities=cities on the "rassroots #udgeting processB and 1/.A.4. %ssist DI+" in the municipal level planning activities, including in the preparation and conduct of the 2nhanced +DC and +PR%* meetings and ensure the active participation of the #DC :ice&Chairs in these meetingsB and 1/.G. *he P A) shall!

1/.G.1. Re'uire each mem(er agency to assign a permanent and alternate representatives to the RPR%*B 1/.G.). Conduct orientation wor8shops for the +PR%* of focus municipalities=cities on the "rassroots #udgeting process which will discuss the following5 Rationale for "rassroots #udgetingB -. )/10 "rassroots #udgeting guidelinesB *ools for +PR%P developmentB and 9enu of Programs for "rassroots #udgeting, including technical re'uirements for pro@ects (y participating agenciesB

))

1/.G.4. Provide technical assistance in the development of +PR%Ps and monitor the activities of the +",s and the progress of su(mission of pro@ect proposals and +PR%PsB 1/.G.;. Consolidate, review and validate the proposed +PR%Ps su(mitted (y the +PR%*s and ensure that proposed pro@ects do not e3ceed the +", (udget capB 1/.G.0. Inform the RDCs and the concerned +C2s on the final +PR%P pro@ects for the focus cities and municipalities which are included in the (udget proposal of the participating agenciesB and 1/.G.A. 9onitor and evaluate the performance of the +PR%* and the implementation of "rassroots #udgeting Pro@ects. It #+all /i8e recommendation# or action# to .e taEen ., L PA)# or (n+anced LDC# F+ic+ are not re#%on#i8e or noncom%liant Fit+ t+i# JMC.

1/.H. *he Gra##root# Bud/etin/-PMO &DILG* shall! 1/.H.1. +ead the conduct of regional orientation for the RPR%*s on the formulation of +PR%PsB 1/.H.). -acilitate mapping of the approved pro@ect of +",s and their posting in the "rassroots #udgeting = empowerment portalB and 1/.H.4. 9onitor the progress of the implementation of "rassroots #udgeting Pro@ects and underta8e internal evaluation of the program for program management purposes. 1/.I. *he NAPC shall5 1/.I.1. Create a helpdes8 at the national level for the purpose of direct communication (etween the local community and 1"%s="$CCs with regard to +PR%P implementation status and issuesB 1/.I.). 2sta(lish a grievance and redress system where various sta8eholders can communicate their concerns regarding the implementation of "rassroots #udgetingB 1/.I.4. -acilitate the overall "rassroots #udgeting initiative. 1/.1/. e3ternal evaluation of the

*he Central O$$ice# o$ Partici%atin/ A/encie# shall!

)4

1/.1/.1. Incorporate the list of priority pro@ects su(mitted (y 1%PC in their proposed )/10 (udgetB 1/.1/.). 6u(mit to D#9, the departments (udget proposal for -. )/10 which includes the pro@ect proposals from the focus cities= municipalities (y A%ril 45' 2344. In filling&up #P)/1&%#C of the -. )/10 1ational #udget Call, +", pro@ect proposal shall (e tagged as KIL to facilitate trac8ing and monitoring, as shown in the e3ample. 23ample5 -arm to 9ar8et Road, Department of %griculture P%Ps Fey Program Code %mounts #.1.( -arm to 9ar8et Roads 4 Region 1 PPPPPPP Regular 333333 "rassroots #udgeting I 333333 1/.1/.4. "ive feed(ac8 to the RDC and the +",s on the status of the proposals through their %gency Regional $ffices %R$s!B and 1/.1/.;. 9onitor the implementation of "rassroots #udgeting pro@ects under their respective agencies. 1/.11. *he NP A) shall! 1/.11.1. 1/.11.). 1/.11.4. Review the proposals for pro@ects which are outside the 9enu of ProgramsB Create new programs to address unmet needs as identified through the "rassroots #udgeting ProcessB and Discuss and provide recommendations on policy and implementation issues that may arise.

11. F0ND SO0 C( -unding for the implementation of approved "rassroots #udgeting pro@ects shall (e incorporated (y the participating agencies and D#9 into the -. )/10 1ational 23penditure Program.

1).

G ASS OO)S B0DG()ING CAL(NDA

);

Participating agencies and +",s are en@oined to adhere to the "rassroots #udgeting (udget preparation calendar as specified in the ta(le (elow. %ctivity Responsi(le Party Period Prior to 6ept )/14

1 ) 4 ;

For :ALA"I-CIDSS area# onl,! D67D %rea Coordination 6election of #DC :ice&Chairs *eams for F%+%HI&CID66 and #arangay&level poverty situational analysis $rientation of the RPR%*6 DI+" P9$ Conduct of Civil 6ociety %ssem(lies $rientation wor8shops for +PR%*s Conduct of +PR%P 7or8shops = 2nhanced +DC and +PR%* meetings 6u(mission of +PR%Ps and list of priority pro@ects = +DIPs to the DI+" R$ -orward copies of all +PR%Ps with consolidated list of pro@ects = +DIPs to 1%PC and participating regional officesB 1%PC to forward to all participating %gency Central $ffices Convening of RPR%* to validate +", proposalsB clarify proposals with +",s if necessary Convening of 1PR%* to review outside of the menu programs 6u(mission of accepted and re@ected outside of the menu pro@ects to the RPR%*s together with revised 9enu of Programs

6ep $ct

RPR%*6 +",s

1ov 1 & 10 1ov 1A & Dec 10 Dec 1A

+",s

RPR%*

Dec )4 Dec 4/ out to 1"%s

RPR%*

Jan )/ > 41

DI+" P9$ and Jan )/ > 41 participating agencies DI+" P9$ -e( 4

)0

%ctivity 1 / 1 1 1 ) Inform +PR%*s of re@ected pro@ects for replacement :alidation wor8shop to replace pro@ects with +PR%*s 6u(mission of consolidated revised +PR%Ps= +DIP to RPR%*s together with 6angunian Resolution 6u(mission of consolidated list of validated pro@ects to 1%PC 2ndorsement of proposed "rassroots #udgeting Pro@ects to participating agencies Integration of "rassroots #udgeting Proposals with 1"% (udget proposals in the 12P 6u(mission of agency proposed (udget to D#9

Responsi(le Party RPR%* RPR%*s +",s

Period -e( A -e( 1/ & )1 -e( )H

1 4 1 ;

RPR%*s

9ar G

1%PC

9ar 1;

1 0

D#9 and %gency Central $ffices

9ar 10 & %pril 1;

1 A

Participating agencies

%pril 10

14. GO6( NING CLA0S(. Issues arising from the implementation of this Circular shall (e resolved (y the oversight agencies of the program.

1;. (P(ALING CLA0S(. %ll provisions of e3isting issuances that are inconsistent with this Circular are here(y repealed=amended accordingly.

10.

(FF(C)I6I)1. *his circular shall ta8e effect immediately.

-or compliance.

C$R%Q$1 J,+I%1$&6$+I9%1 R$C%9$R%

J$62

2+I62$

9.

)A

6ecretary, D67D Convenor, 1%PC

+ead

-+$R21CI$ #. %#%D 6ecretary, D#9 DI+"

9%R R$P%6 6ecretary,

)G