Grassroots Infrastructure Planning and Budgeting Act

Senate Office of the Setretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) OCT 23 A9:34 SENATE RECEIVED BY: 1459 S. No. _ Introduced by Senator Francis G. Escudero AN ACT STRENGTHENING THE ROLE OF LOCAL AND REGIONAL DEVELOPMENT COUNCILS IN THE NATIONAL BUDGET PROCESS BY REQUIRING THEIR PRIOR ENDORSEMENT AS A REQUISITE OR CONDITION SINE QUA NON FOR THE INCLUSION OF ANY INFRASTRUCTURE PROJECT IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT AND THE RELEASE OF ITS CORRESPONDING ALLOTMENT EXPLANATORY NOTE The government allocates hundreds of billions of pesos for infrastructure projects every year. The current budgeting system responsible for making sure the prudent use of public funds, however, is prone to inefficiencies. The budget lacks strong measures to prevent corruption and is frequently rife with redundant, overlapping, and misaligned initiatives. The limited avenues for grassroots participation also hamper meaningful public participation and further aggravate the disjoint between the local development needs and the mechanisms to address them. This bill aims to strengthen the role of Local and Regional Development Councils in the national budgeting process by requiring their prior endorsement before any infrastructure project is included in the budget and before any of the funds for such projects are released. Through these interventions, the bill will strengthen government mechanism for coordination, cooperation and information-sharing, improve the efficiency and effectiveness in the utilization of public funds, and improve the transparency, accountability, and responsiveness of the budget process. In view of the foregoing, the approval of this measure is earnestly sought. FRANCES ONESCUDERO

Senate Office of the Secretarp TWENTIETH CONGRESS OF THE ) OCT 23 A9:34 First Regular Session RECEIVED BY: SENATE S. No. 1459 Introduced by Senator Francis G. Escudero AN ACT STRENGTHENING THE ROLE OF LOCAL AND REGIONAL DEVELOPMENT COUNCILS IN THE NATIONAL BUDGET PROCESS BY REQUIRING THEIR PRIOR ENDORSEMENT AS A REQUISITE OR CONDITION SINE QUA NON FOR THE INCLUSION OF ANY INFRASTRUCTURE PROJECT IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT AND THE RELEASE OF ITS CORRESPONDING ALLOTMENT Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Grassroots

2 Infrastructure Planning and Budgeting Act".

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

4 uphold the right of the people to effective and reasonable participation at all levels of 5 social, political, and economic decision-making. In cognizance of this right, and the 6 constitutional mandate to facilitate, by law, the establishment of adequate 7 consultation mechanisms, the State shall institutionalize and strengthen the role of 8 local and regional development councils in ensuring the transparent, responsive, and 9 accountable preparation, authorization, and utilization of government appropriations for infrastructure projects.

Sec. 3. Statement of Objectives. - The objectives of this Act are as follows:

(a) Institutionalize a Bottom-up Budgeting or Grassroots Participatory Budgeting System wherein priority infrastructure projects identified at the local level are considered and funded at the national level;

(b) Strengthen mechanisms for coordination, cooperation, and information 2 sharing between national government agencies and local government units; (c) Avoid duplication and overlap of projects across government agencies; and (d) Improve transparency, accountability, and responsiveness of the national 5 budget and the budget process.

Sec. 4. Coverage. - This Act shall apply to all infrastructure projects of national

7 government agencies and instrumentalities, including constitutional offices, state universities and colleges, and government-owned or -controlled corporations with or 9 without original charter: Provided, That for the purposes of this Act, the term "infrastructure projects" shall refer to the construction, improvement, rehabilitation, 11 demolition, repair, restoration, or maintenance of roads and bridges, railways, 12 airports, seaports, communication facilities, civil works components of information 13 technology projects, irrigation, flood control and drainage, water supply, sanitation, 14 sewerage and solid waste management systems, shore protection, energy/power and 15 electrification facilities, national buildings, school buildings, hospital buildings, and 16 other related construction projects of the government.

Sec. 5. Prior Endorsement Requirement. - No infrastructure project shall be

included in the proposed National Expenditure Program (NEP) submitted by the 19 President, nor introduced as an amendment to the NEP or General Appropriations Bill, 20 unless such infrastructure project is duly endorsed by the Regional Development 21 Council and either the Provincial Development Council or the City/Municipal 22 Development Council and their respective Sanggunians having jurisdiction over the area where the project is to be implemented. Such endorsement shall be deemed as 24 a requisite or condition sine qua non for the inclusion of any infrastructure project in 25 the General Appropriations Act and for the subsequent release of any allotment for its implementation.

Sec. 6. Transitory Provision. - For Fiscal Year 2026, the requirement of prior

endorsement provided under Section 5 of this Act shall apply to infrastructure projects implemented by national executive agencies, including, but not limited to, projects implemented by the Department of Agriculture, Department of Education, Department 31 of Health, Department of Information and Communication Technology, Department of

1 the Interior and Local Government (DILG), Department of National Defense, 2 Department of Public Works and Highways, and Department of Transportation. 3 Consequently, no funds shall be released, nor any procurement activity shall be 4 performed for such infrastructure projects.

Sec. 7. Implementing Rules and Regulations. - Within sixty (60) days from the

6 effectivity of this Act, the Department of Budget and Management shall, in 7 coordination with the Department of the Economy, Planning, and Development, DILG, 8 and local government leagues, promulgate the rules and regulations to effectively 9 implement the provisions of this Act.

Sec. 8. Separability Clause. - If any provision or part hereof is declared

unconstitutional, the remainder of this Act or any provision not affected thereby shall 12 remain in full force and effect.

Sec. 9. Repealing Clause. - All laws, acts, decrees, executive orders, issuances,

14 and rules and regulations or parts thereof which are contrary to and inconsistent with 15 this Act are hereby repealed, amended or modified accordingly.

Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or at least two (2) newspapers of general circulation. Approved,