Senate Difice of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 OCT 23 P1:40 SENATE RECEIVED BY: 1461 S. No. _ Introduced by Senator Francis G. Escudero AN ACT INSTITUTIONALIZING BUDGET TRANSPARENCY AND ACCOUNTABILITY SAFEGUARDS IN THE INCLUSION AND IMPLEMENTATION OF ANY AND ALL INFRASTRUCTURE PROJECTS IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT EXPLANATORY NOTE This bill is a direct response to the observations and findings made in relation to the country's infrastructure spending, which paint a concerning picture of deeply rooted flaws in budgetary and procurement processes. These systemic deficiencies have continuously failed to prevent inefficiencies, irregularities, uncertainties, and abuses in the allocation and implementation of infrastructure projects The proposed safeguards on infrastructure projects - such as technical and financial documentation, budget splitting prohibition within a given fiscal year, and infrastructure project monitoring mechanisms - are designed to eliminate embedded schemes that give rise to or facilitate corruption and budget policies and standards circumvention, thus weakening, if not totally disregarding, accountability and integrity. Ultimately, this bill seeks not only to ensure that the taxes paid by Filipinos are prudently and rightfully used to improve the quality of their lives, but also to restore trust and confidence in the entire budget process and implementation. In view of the foregoing, the approval of this measure is earnestly sought. • G. ESCUDERO
Sentate Office of the Secretarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 25 OCT 23 P1:40 First Regular Session SENATE RECEIVED BY: 1461 S. No. _ Introduced by Senator Francis G. Escudero AN ACT INSTITUTIONALIZING BUDGET TRANSPARENCY AND ACCOUNTABILITY SAFEGUARDS IN THE INCLUSION AND IMPLEMENTATION OF ANY AND ALL INFRASTRUCTURE PROJECTS IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT 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 "Infrastructure
2 Appropriations Integrity Act".
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 maintain honesty and integrity in the public service and take positive and effective measures against graft and corruption, and to adopt and implement a policy of full 6 public disclosure of all its transactions involving public interest. In cognizance of this 7 constitutional mandate and the need to ensure prudent, responsive, transparent and accountable utilization of public resources, the State shall institutionalize mechanisms to strengthen the monitoring, oversight, and audit of appropriations for infrastructure projects, deter efforts to circumvent budget and procurement standards, and promote transparency and accountability in the allocation of public resources.
Sec 3. Definition of Terms. - As used in this Act:
(a) Geotag shall refer to the metadata about government projects embedded in various media and uploaded to web-based applications that enable mapping of government projects and the monitoring of the progress of projects by the government, the citizenry, and other stakeholders;
(b) Implementing Agency shall refer to any department, bureau, office, 2 commission, authority or agency of the national government, including any 3 government-owned or -controlled corporation or state college or university, duly authorized by law or its charter to undertake national government projects; (c) Infrastructure Project shall refer to the construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, 10 energy/power and electrification facilities, national buildings, school buildings, hospital 11 buildings, and other related construction projects of the government; and (d) Multi-Year Project shall refer to a government project that would require more than one (1) year to complete and would consequently need appropriations across multiple years as evidenced by a duly approved multi-year obligational authority.
Sec. 4. Inclusion of Project Locator. - The implementing agency shall ensure
that the appropriations for its infrastructure projects shall include mechanisms that allow such projects to be readily and accurately located. These mechanisms shall include, but are not limited to, station numbers, geotags, geodetic coordinates, and such other technology-based methodologies that may be developed or adopted by government agencies concerned. The inclusion of project locator shall be deemed as a requisite or a condition sine qua non for the inclusion of any infrastructure project in the National Expenditure Program and the General Appropriations Act, and for the conduct of any procurement activity and the subsequent release of any allotment for such project.
Sec. 5. Technical and Financial Basis for Appropriation. - Appropriations for
infrastructure projects shall be supported by documentation that establishes the technical and financial basis for their determination. Such documentation shall include, among others, detailed unit price analyses, standard costs of materials, quantity estimates, and other pertinent technical and financial computations and justifications. Such documentation shall be deemed as a requisite or a condition sine qua non for
1 the inclusion of any infrastructure project in the National Expenditure Program and 2 the General Appropriations Act, and for the conduct of any procurement activity and 3 the subsequent release of any allotment for such project.
Sec. 6. Prohibition on Budget Splitting. - The implementing agency shall ensure
5 that the appropriations for its infrastructure projects are not divided into phases or 6 packages within a single funding year regardless of intent: Provided, however, That 7 this shall not be construed to prohibit an implementing agency from undertaking multi- 8 year projects covered by a duly approved multi-year obligational authority issued by 9 the Department of Budget and Management (DBM). This prohibition against budget 10 splitting shall be deemed as a requisite or a condition sine qua non for the inclusion of any infrastructure project in the National Expenditure Program and the General 12 Appropriations Act, and for the conduct of any procurement activity and the subsequent release of any allotment for such project.
Sec. 7. Transitory Provision. - For Fiscal Year 2026, compliance with the
requirements under Sections 4, 5, and 6 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 of Health, Department of Information and Communication Technology, Department of the Interior and Local Government (DILG), Department of National Defense, Department of Public Works and Highways, and Department of Transportation. Consequently, no funds shall be released, nor any procurement activity shall be performed for such infrastructure projects.
Sec. 8. Implementing Rules and Regulations. - Within sixty (60) days from the
effectivity of this Act, the DBM shall promulgate the rules and regulations to effectively implement the provisions of this Act.
Sec. 9. Separability Clause. - If any provision or part hereof is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in full force and effect.
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Sec. 10. Repealing Clause. - All laws, acts, decrees, executive orders,
issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.
Sec. 11. 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,