People's Participation in the National Budget Process Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P5:15 SENATE S. No. 32 RUGS: 30 2' ---- Introduced by Senator Panfilo M. Lacson INSTITUTIONALIZING THE PARTICIPATION OF CIVIL SOCIETY ORGANIZATIONS (CSOS) IN THE PREPARATION AND AUTHORIZATION PROCESS OF THE ANNUAL NATIONAL BUDGET, PROVIDING EFFECTIVE EXPLANATORY NOTE The National Budget is the government's most fundamental instrument in achieving its policy goals - it can improve our economy, encourage the business community, and improve the lives of marginalized people. As the lifeblood of the economy and a powerful tool for development, this reflects the government's commitment and political will to achieve real and meaningful social and economic change. Time and again, this representation has emphasized the need for mechanisms that ensure that the entire budget process adheres to the principles of good governance. This is to assure the Filipino taxpayers that their monies are spent effectively, transparently, and in line with the true needs of the people. This bill, known as "People's Participation in the National Budget Process Act", is therefore being proposed to empower legitimate civil service organizations (CSOs) to directly participate in the budget process. Specifically, this bill aims to institutionalize people's participation in budget deliberations at various levels of government -

national, provincial, municipal, and down to the barangay level. Without underestimating and undermining the capacities of elected representatives in crafting a budget that is needed by a particular locality, this bill gives full play to the people's right to participate in all levels of social, political, and economic decision-making. Furthermore, it institutionalizes people's access to information about how taxpayers' money is being spent. In a way, this bill serves as our people's safeguard against corruption through public oversight on how our taxes are being spent. Consistent with the current administration's call for a people-centered governance in the Philippine Development Plan 2023-2028, this proposed measure aims to reinforce the call for a fiscally responsible and participatory government, where every peso spent directly contributes to shared growth and improved public services. Needless to say, strengthening a collaborative approach between the legislature and civil society is a step towards achieving a people-oriented budget—a budget that truly reflects the aspirations and priorities of the Filipino people. In view of the foregoing, the immediate enactment of this bill is earnestly sought. PANTAL A LACSON Senator

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P5:15 SENATE S. No. 32 REC Introduced by Senator Panfilo M. Lacson ACT INSTITUTIONALIZING THE PARTICIPATION OF CIVIL SOCIETY ORGANIZATIONS (CSOs) IN THE PREPARATION AND AUTHORIZATION PROCESS OF THE ANNUAL NATIONAL BUDGET, PROVIDING EFFECTIVE MECHANISMS THEREFOR, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives in Congress assembled:

Section 1. Short Title. This Act shall be known as the "People's Participation in

2 the National Budget Process Act".

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

facilitate the establishment of adequate consultation and feedback mechanisms to promote meaningful and effective participation of Civil Society Organizations (CSOs) in the preparation and authorization of the annual national budget in order to ensure 7 that the annual appropriations will be an instrument of development that is reflective 8 of the national objectives, strategies and plans beneficial to the people.

Sec. 3. Definition of Terms. For purposes of this Act, the following terms are

defined as follows: a. Accreditation - refers to the registration process of CSOs with the National Government Agencies (NGAs) and Government-Owned and Controlled Corporations (GOCCs), in order to allow them to participate in the preparation and authorization of the annual national budget; b. Accredited CSO - refers to CSOs that have fulfilled the requirements in Section 5 of this Act;

C. Budget Call - refers to the budget document issued by the Department of Budget and Management (DBM) and sent to all NGAs and GOCCs, which contains the policy guidelines and procedures in the preparation of the annual budget, including the budget preparation calendar for any given year. The issuance of a budget call signals the beginning of the budget preparation phase; d. Civil Society Organizations (CSOs) - include non-government organizations (NGOS), cause-oriented groups, people's organizations, cooperatives, trade unions, professional associations, faith-based organizations, media groups, indigenous peoples movements, foundations, and other citizen groups formed primarily for social and economic development, which monitor government projects, engage in policy discussions, and actively participate in collaborative activities with Government; e. Conflict of Interest - refers to a condition which occurs when a CSO or any of its key officers are involved in multiple interests which prevent an impartial or unbiased attitude towards their participation in the national budget process; f. Constructive Engagement - refers to a partnership between Government and counterpart CSOs marked by sustained dialogue towards problem solving while respecting and retaining the focus on assertion for reforms; g. Government-Owned or Controlled Corporation (GOCC) - refers to any agency organized as a stock or non-stock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly, or, where applicable as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock; h. National Government Agency (NGA) - refers to a unit of the National Government, including the Judiciary, both Houses of Congress, and Constitutional Offices; and i. Participatory Mechanisms - refer to the means by which COs can participate meaningfully and effectively in the government process of formulating and authorizing an annual national budget that is responsive to the needs of the different sectors in our society.

Sec. 4. Coverage. This Act shall apply to all NGAs and GOCCs whose budget is

2 included in the Annual General Appropriations Act.

Sec. 5. Accreditation. The application for accreditation for the Senate, the

4 House of Representatives, the Judiciary, and the Constitutional Offices shall be filed 5 at the Office of the Secretary, the Secretary-General, the Supreme Court Clerk of Court, and the Office of the Chairman, respectively. The application for accreditation for other NGAs and GOCCs may be filed at their respective regional or central office. 8 The application form shall be prescribed by each office and the application for 9 accreditation shall be accompanied by the following documents: a. Articles of Incorporation and By-Laws of the applicant CSO; b. Certificate of Registration and/or other such similar documents, issued by an appropriate government agency tasked to register civil society organizations, such as but not limited to, the Securities and Exchange Commission, Bureau of Labor Relations, Department of Human Settlements and Urban Development, Insurance Commission, and the Cooperative Development Authority. c. The list of officers, directors, trustees, and members; d. Duly audited financial statements for the past three (3) years showing the assets and liabilities of the organization; e. Full disclosure of the sources of funds; and f. Full disclosure of service contracts with other NGAs, CSO, private corporations, other CSOs, and other engagements which may result in conflict of interest. Upon approval of the application, the head of the concerned NGA or GOCC shall issue the certificate of accreditation. This shall be valid for three (3) years following its issuance, except for the certificate of accreditation issued by the Senate and the House of Representatives, which shall be valid for the entire term of the Congress under which such certificate of accreditation was issued. No application for accreditation shall be disapproved, except upon due notice and hearing. The decision of the head of the concerned NGA or GOCC shall be rendered within twenty (20) working days from the time of the filing of the application. Failure to act on the application shall be deemed an automatic approval of the application for accreditation of the concerned CSO, and the issuance of a certificate of accreditation shall necessarily ensue.

Sec. 6. CSO Participation. In the interest of transparency, CSO participation shall

be a component in the preparation and authorization of the annual national budget. All NGAs and GOCCs shall be required to formuiate and adopt guideiines outining the mechanism for the accreditation and active participation of the CSOs in the preparation and authorization of the annual national budget. The DBM shall ensure that the NGA or GOCC has complied with the above- mentioned requirement. Accredited CSOs, through their duly authorized representatives, shall be allowed to participate as resource persons in the budget hearings to be conducted by the appropriate Committees of each House of Congress, provided that they comply with 11 the guidelines to be issued by both Houses of Congress. Notwithstanding their participation in the budget hearings to be conducted by the appropriate Committees of each House of Congress as provided in the preceding paragraph, the Committee on Appropriations of the House of Representatives and the Committee on Finance of the Senate shall schedule one hearing day for the presentation of the positions of accredited CSOs on the budget.

Sec. 7. Privileges and Incentives. An accredited CSO shall enjoy the following

privileges and incentives: a. To have similar participation rights accorded to NGOs in the Local Development Councils pursuant to the provisions of RA No. 7160 otherwise known as the "Local Government Code of 1991", in setting the direction of economic and social development, coordinating development efforts within its territorial jurisdiction; b. To receive notices and participate as resource person through its duly authorized representatives in any regular and consuitative public meetings, hearings, conferences, and diaiogues on matters related to the preparation and authorization of the annual national budget; c. To be allowed to observe at the budget deliberations and at the bicameral conference; d. Access to copies of the budget proposals submitted by the NGAs or GOCCs to the DBM;

e. To provide position papers to the DBM on the budget proposal of NGAs or GOCCs submitted pursuant to the budget call; f. To submit its own alternative or proposed budget or position paper; g. Access to issuances such as, but not limited to, policy orders, circulars and memoranda that are related to the budget; h. Access to the documents prepared by the DBM for submission to Congress by the President as a basis for the General Appropriations Bill required under Article VII, Section 22 of the Constitution; i. To present written proposals on projects and activities of the government entities whose budget is under deliberation; and j. Immediate access to stenographic notes and committee reports released by both Houses, including the bicameral conference committee report. The bicameral conference committee meetings and all other meetings related or associated thereto shall be recorded and be made accessible immediately to promote transparency and to allow members of both Houses to easily determine how conflicting provisions in the proposed national budget were reconciled or resolved prior to the submission thereof for ratification by both Houses of Congress.

Sec. 8. Notice to CSOs. Notice to CSOs may be sent through electronic mail,

facsimile machine, postal mail, and by posting at the website of the NGA or GOCC concerned. Any of the said modes of sending notices shall be deemed compliance to the requirements under Section 7(a) of this Act.

Sec. 9. Conflict of Interest. It is the responsibility of the CSO to inform the NGA or

GOCC of a conflict of interest in their work with the concerned agency, if and when such a situation arises. However, if the NGA or GOCC deems that the CSO has a conflict of interest with the work of such NGA or GOCC, the latter shall allow the applicant-CSO to explain and prove that the conflict of interest does not exist.

Sec. 10. Cancellation of Accreditation. Upon receipt of a verified complaint in

writing, which charges the holder of a certificate of accreditation of having procured their certificate of accreditation by fraud or deceit, the head of the NGA or GOCC shall

notify and serve a copy of the complaint to the CSO concerned, who shall be given an opportunity to be heard. Inaction by the NGA or GOCC on the said complaint within twenty (20) working days from the receipt of such complaint shall be deemed a dismissal of the complaint against the CSO involved.

Sec. 11. Non-Accredited CSOs. Non-accredited CSOs may still participate in the

budget process by submitting position papers for the consideration of the NGA or GOCC and by attending and observing public consultations. They may be invited to expound on their critique or proposals when said institutions deem it fit. Nothing in this Act shall be construed to deprive non-accredited CSOs of the rights, privileges, and incentives accorded to them by the Constitution, existing laws, executive orders, rules and regulations, and other issuances.

Sec. 12. Public and Timely Disclosure of Budget Documents and Other Related

Data. For CSOs to participate in an informed manner, the NGA or GOCC shall post on their websites or other public posting areas, budget documents to which CSOs shall have access, as provided for under Section 7 of this Act.

Sec. 13. Separability Clause. If any provision of this Act shall be declared invalid

or unconstitutional, the remaining part or provisions not otherwise affected shall remain in force.

Sec. 14. Repealing Clause. Any law, decree, ordinance, administrative circulars

not consistent with any provision of this Act is hereby amended, repealed, or modified accordingly.

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

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