Citizen Participation
Strengthening Public Fiscal Management
18 September 2015
Marco Polo Hotel, Pasig, Metro Manila
MAXINE TANYA M. HAMADA
Assistant Secretary
Department of Budget and Management
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Source: [Link]
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The Budget and the Economy
The Budget Process Before
Budget Call Late Submission of Deliberations & Budget Submitted
Released Late Agency Proposals Finalization Just Before Deadline
April (w/ much lump sums!) June-July August
May
Budget Legislation
Also Delayed
September-February
Delayed Implementation Bidding Takes Allotment Release
Rainy season leads to delays, A Lot of Time a Bottleneck GAA Enacted Late
cost overruns & poor quality 3-4 Months April March
The Budget Process Now
Budget Submitted
Agencies have more time Deliberations &
Right After SONA
Early Budget Call to flesh out proposals, Finalization
align with priorities & July
January May-June
engage stakeholders
January-April
Budget Legislation
On Schedule
August-December
Citizens are
more & more
empowered
throughout
GAA Enacted On Time
the process
Implementation as & Serves as Release Doc Early Bidding
Early as January Before End-December October-December
BUT CAN WE ABSORB
FURTHER GROWTH?
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AND WITH GROWTH,
CAN WE BUILD
GREATER TRUST?
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Our task
It is institutions that determine the fate of
nations - Why Nations Fail by Daron Acemoğlu and James A. Robinson
• Nations fail when institutions are “extractive,”
protecting the political and economic power of only a
small elite that takes income from everyone else.
• Success comes when political and economic
institutions are inclusive and pluralistic, creating
incentives for everyone to invest in the future.
Our goal
put the country onto a new trajectory, away from
patronage politics and corruption, and towards
good governance and inclusive growth
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Our Trajectory
• Entitlement • Values-Based
• Dependency • Meaningful
Devolution
• Poverty
• Meritocracy
• Institutional • Voice & Vote
Capture • Transparency
• Opacity
Our pillars
Transformation and setting a new trajectory does not only
mean the creation of an effective and efficient state which
can deliver public services.
It implies taking on a larger agenda for creating an
institutional framework that delivers good governance.
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Transforming the Budget
Spending within means
Spending on the right priorities
Spending with measurable results
In an empowering regime of
transparency, accountability
& citizen’s engagement
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The “Technical Deficit”
FUNDAMENTAL REASONS:
Poor planning Poor capacity Complicated
and linkage with for program & budget release
budgeting project design process
Long & tedious Poor delivery,
procurement monitoring &
process evaluation
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Poor Procurement
Total APP vs. Awarded Contract
(in terms of amount, NGAs)
2011 2012
APP = PhP 137.91 B APP = PhP 131.17 B
Awarded = PhP 30.19 B Awarded = PhP 31.74 B
Awarded Awarded
21.89% 24.20%
78.11% 75.80%
Poor Execution
NG Disbursements Performance, 2014
(in PhP billion)
Current Year Performance Increase/
Prior Year's
Deviation (Decrease)
Actual Program Actual
Amount % Amount %
2014 1,880.2 2,284.3 1,981.6 (302.7) (13.3) 101.5 5.4
Jan-Nov 1,677.3 2,096.4 1,762.3 (334.1) (15.9) 85.0 5.1
Dec 202.8 187.9 219.3 31.4 16.7 16.5 8.1
2013 1,777.8 1,983.9 1,880.2 (103.7) (5.2) 102.4 5.8
2012 1,557.7 1,839.7 1,777.8 (61.9) (3.4) 220.1 14.1
2011 1,552.4 1,711.3 1,557.7 (153.6) (9.0) 5.3 0.3
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Php468 Billion
carry-over budget
15.57% of the 2016 estimated disbursements
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Meaningful
Devolution
Inclusive Development
and Meaningful Devolution
INCLUSIVE DEVELOPMENT IS HINGED ON:
Ability of LGUs Greater LGU Increased voice &
to implement accountability for vote of grassroots
programs & the results of use of communities & local
projects public funds civil society
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Delivering Measurable Results
Alternative Delivery Modes
Performance-Based
Downloading to LGUs Public-Private
to support service Partnerships to boost
delivery thru meaningful implementation of big
devolution & community ticket infrastructure
empowerment
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LGU-Public Financial
Management (PFM)
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General Provision Salient Points
• GAA 2014 and 2015
(GP) on Fund • National Funds transfer to CSOs and
Transfers to CSOs Beneficiaries
• Accredited by DSWD
• Guidelines by COA-DSWD-DBM
• In consultation with agencies
• JR 2014-001 on Accreditation
• Covers Implementing entities
• Principles, criteria, and application
GAA for accreditation of CSOs
• Coverage and validity
• Reporting mechanism
• JR 2015-001 on Accreditation
• Covers implementing entities
• Adopts JR 2014-001
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Principles behind Accreditation Requirements
(Beneficiary CSOs)
• Application Forms and Basic Documents
• Strengthening CSO Existence to tag Public Funds
(location sketch/photo of office, data sheet, Org Chart)
• Documents Establishing Corporate Existence and
Regulatory Compliance
• Strengthening CSO Governance to Decide on Public Funds
(Roster of members, Social Preparation, Organization Policies)
• Documents Establishing Track Record and Good Standing
• Strengthening CSO Accountability for Public Funds
(List of programs/projects, no derogatory record, affiliation and
good standing if part of an umbrella organization)
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“We have only
remained true to what
we promised our
Bosses: no one will be
left behind, as we tread
the straight path to
progress.”
President Aquino's speech on the
signing of the FY 2015 GAA
December 23, 2014
Rizal Hall, Malacañan Palace
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Performance-Based Downloading
LGU Performance Requirements
Bottom-Up Budgeting Provincial Roads
P11.7 B P6.5 B
• Engage local CSOs via BUB • Provincial road network plan &
• Meet Good Financial other reports at start of the FY
Housekeeping standards (SGLG) • LGU PFM assessment report
• Submit quarterly reports to • Submit quarterly reports to
DBM & Congress DBM & Congress
• Updating of project status • Updating of project status
through Open BUB Portal through Open Roads Portal
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FY 2016 QUICK OVERVIEW
PROJECTS
14,326 projects
1,514 cities and municipalities (ARMM not included)
P24.714 B budget
18% increase from 2015 budget of P20.905B
ADMINISTRATIVE COST AND M&E
3% M&E: P741 M
PMO Budget (DILG): P350 M
*Two LGUs did not submit their LPRAP:
Pagadian City and Pantar, Lanao del Sur
DISTRIBUTION BY AGENCY
TESDA DTI NIA DOT DENR
3% BFAR 2% 1% 1% 1%
DEPED 3%
4%
DILG
DOLE 28%
4%
DOH
7%
Less than 1%
DOE DSWD
NEA 9%
NCIP
DA LGSF
12% 26%
Bottom-up-Budgeting
2013 Budget 2014 Budget 2015 Budget
(Enacted) (Enacted) (Enacted)
Budget Year 6062 projects 17398 projects 14300 projects
Amount of Locally-
P8 B P20 B P20.9 B
Developed Projects
595 1,225 1,599
Cities & Cities & Cities &
Participating
Local Govts Municipalities Municipalities Municipalities
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The Many but Small
You've got to think
Be faithful in about big things
small things while you're doing
because it is in small things, so
that all the small
them that your things go in the
strength lies. right direction.
Mother Teresa
Alvin Toffler
Huge NG Budget for Social Services
Should this be LGUs’ in the first place?
P953 P390
billion
billion
National Government Budget for Internal Revenue
SOCIAL SERVICES, 2015 Allotment (IRA), 2015
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Inclusive Development
and Meaningful Devolution
INCLUSIVE DEVELOPMENT IS HINGED ON:
Ability of LGUs Greater LGU Increased voice &
to implement accountability for vote of grassroots
programs & the results of use of communities & local
projects public funds civil society
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Online Reporting, Monitoring and
Evaluation on [Link]
National Executive enabled Local Executives
to deeply align spending, strengthened to deliver
priorities and measurable frontline governance based on
performance and focus on performance & accountability
expanding inclusive growth
Better Target Planning usung the RSBSA
Coconut farmers (% of crop farmers)
on middle, lower east side of Batangas
(Specific Trend)
Batangas (Region IV-A)
Population: 2,377,395
Household: 511,530
Farmers: 90,256
Coconut Farmers: 12,292
Better Monitoring and Reporting with
Open Roads platform
More Work?
We are perfecting the reforms.
We must perform as we reform.
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AWARDED
3rd Place (Gold)
OPEN GOVERNMENT
AWA R D S
Open Government Partnership
September 24, 2014
New York City
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NOMINATED as
Philippine Entry
OPEN GOVERNMENT
AWA R D S 2 0 1 5
Local Governments
Seal of Good Housekeeping and
Performance Challenge Fund
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Citizen Participation
Strengthening Public Fiscal Management
18 September 2015
Marco Polo Hotel, Pasig, Metro Manila
MAXINE TANYA M. HAMADA
Assistant Secretary
Department of Budget and Management
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Extra Slides
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RESHAPING BUDGET PRIORITIES
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Reshaping Budget Priorities
777 k 1M 2.3 M 3.1 M 3.8 M 4.3 M 4.3 M
households households households households households households households
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RESHAPING BUDGET PRIORITIES
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RESHAPING BUDGET PRIORITIES
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Budgeting not linked to Planning
Philippine ,
Regional & Local
Dev’t Plans
LGUs LGUs LGUs
Revenues lower than target,
Actual spending higher
Budget accountability, reporting,
and controls need to be strengthened
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Dependence on IRA:
Indication of weak fund stewardship in LGUs
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