1. BOTTOM-UP BUDGETING:
A Philippine Experiment

2. DBM – DILG – DSWD – NAPC Joint Memorandum Circular No. 3
series of 2012

3. WHAT IS BUB?
an approach in preparing the budget
proposal of agencies, taking into
consideration the development needs of
poor cities/municipalities as identified in
their respective local poverty reduction
action plans that shall be formulated with
strong participation of basic sector
organizations and other civil society
organizations.

4. Why Bottom-Up Budgeting?
President Benigno S. Aquino,III
Having won a resounding
electoral mandate on the
back of people power,
the thrust of President
Aquino’s government is
to give power back to the
people.

5. GOALS of BUB (as part of the
Empowerment of the Poor Program)
• MAKE NATIONAL GOVERNMENT MORE
RESPONSIVE TO LOCAL NEEDS
• STRENGTHEN DEVOLUTION OF SERVICES
• INCENTIVIZE LOCAL GOVERNANCE REFORMS
• EMPOWER CITIZENS

6. Guiding Principles and Concepts
of the BUB
1. Empower the poor to get themselves
out of poverty
2. Poverty reduction (and local
development) is a shared responsibility
of government and citizens
3. Government can make its anti-poverty
plans more responsive and effective by
allowing for more citizens’ participation

7. Guiding Principles and Concepts
of the BUB
4. Good governance (defined as transparent,
accountable, participatory) significantly
contributes to poverty reduction and
community development
5. Good Governance can be promoted best
through incentives rather than punitive
measures for LGUs/NGAs
6. We can increase the demand for GG through
effective and sustained citizens’ paxn in key
governance processes such as planning and
budgeting

8. Salient Features of the BUB
1. Final output to be produced by the local
communities themselves (Local Poverty
Reduction Action Plan or the LPRAP)
2. It will be produced by the Local Poverty
Action Team per municipality/city (or
the LPRAT) composed of equal
representation from LGUs and CSOs
3. Budget for LPRAP will come from
budgets of participating agencies

9. Conditional Requirements
LOCAL
LOCAL
GOVERNMENTS
GOVERNMENTS
PARTICIPATOR
Y POVERTY
REDUCTION
PLANNING
COMMUNITY //
COMMUNITY
CIVIL SOCIETY
CIVIL SOCIETY
ORGANIZATIONS
ORGANIZATIONS
• Local plans must be signed and
endorsed by 3 CSO
representatives
• LPRATs 50% LGU 50% CSOs
• Local governments must also
• attain a Seal of Good
Housekeeping
• strengthen their local
financial management system
• Technical capacity to
implement projects
• No unliquidated cash
advance from host agencies

10. Coverage
This circular shall cover the following participating agencies:
•NGAs:
1. Department of Agrarian Reform (DAR)
2. Department of Agriculture (DA)
3. Department of Education (DepEd)
4. Department of Energy (DOE)
5. Department of Environment and Natural Resources (DENR)
6. Department of Health (DOH)
7. Department of the Interior and Local Government (DILG)
8. Department of Labor and Employment (DOLE)
9. Department of Social Welfare and Development (DSWD)
10. Department of Tourism (DOT)
11. Department of Trade and Industry (DTI)
12. Technical Education and Skills Development Authority (TESDA)
•Government Owned and Controlled Corporations (GOCCs):
13. National Electrification Administration (NEA)
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11. •For
Coordination and Oversight
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1. Department of Budget and Management
(DBM)
2. Department of the Interior and Local
Government (DILG)
3. Department of Social Welfare and
Development (DSWD)
4. National Anti-Poverty Commission (NAPC)
5. National Economic Development Authority
(NEDA)

12. NAPC BASIC SECTORS














Farmers and landless rural workers
Artisanal fisherfolk
Urban poor
Indigenous cultural communities/indigenous peoples
Workers in the formal sector and migrant workers
Workers in the informal sector
Women
Youth and students
Persons with disabilities
Victims of disasters and calamities
Senior Citizens
Non-government organizations (NGOs)
Children
Cooperatives

13. List of Qualified Projects
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National Development Priorities
Provision of Basic Social Services and
Attainment of the MDG, including Poverty
Reduction
Hunger Mitigation and Elimination
Job Generation and Inclusive Local Economic
Development
Climate Change Adaptation/Mitigation and
Disaster Preparedness

14. Fund Source
Funding
for the implementation
of approved BuB Projects shall
be incorporated by the
participating agencies and DBM
into the FY 2014 National
Expenditure Program.
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15. PROVISION OF COUNTERPART
FUNDS
 Highly urbanized cities
30% of project cost
All cities
20% of project cost
1st class – 3rd class municipalities 15% of project cost
4th class – 6th class municipalities 5% of project cost
Cash counterpart: must be sourced out from LGU funds
and included in the LGUs’ 2014 AIP and local budget
No counterpart in the 2014 local budget thru the
Appropriation Ordinance : no release of funding for PPRPs
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16. THE LOCAL POVERTY REDUCTION
ACTION TEAM (LPRAT)
the group to spearhead the
formulation and monitoring of
the LPRAP
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17. COMPOSITION
Chairperson: Local Chief Executive (LCE)
Co-Chairperson:
A CSO representative
Members:
Representatives from Government, to wit:
• Sangguniang Panlungsod/Bayan Member who is
the Chairperson of the Committee on
Appropriation;
• All local government department heads such as the
Planning Officer, Budget Officer, Agriculture
Officer, Social Welfare and Development
Officer, and Health Officer;
• Representatives of national government agencies
(NGAs) such as the DSWD municipal links, PESO
manager and the DILG City/Municipal Local
Government Operations Officer, the school
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district supervisor and Agrarian Reform
Officer

18. Composition

Representatives from Civil Society Organizations (must
be residents of the city or municipality), to wit:
a
Pantawid Pamilya Parent-Leader;
a Leader from DOH organized Community Health
Teams;
a Leader of the Parent-Teacher Associations;
a Leader of a CSO accredited by LGUs;
a Leader of a CSO accredited or recognized by any NGA;
a Leader of a women’s group;
a Leader of a basic sector organization;
a Leader of a basic sector organization accredited by
NAPC;
a Leader of other community or grassroots
organizations; and
A representative from the business sector
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The LPRAT shall be composed of an equal number of government representatives
(including the LCE) and non-government representatives (civil society and
business). It should also be composed of at least 40% women.

19. SELECTION OF CSO
REPRESENTATIVES & SIGNATORIES
The elected CSO representatives shall also elect among
themselves the co-chair of the LRPAT and the three
representatives who will sign the LPRAP. The three
signatories must include:
1. a Pantawid Pamilya parent leader, the selection of whom
shall be facilitated by the DSWD municipal link (If the city or
municipality has no Pantawid Pamilya beneficiaries, a Parent
Teacher Association representative can serve as an
alternative);
2. a representative from a basic sector organization or
cooperative of any of the following sectors: farmers and
landless rural workers, artisanal fisherfolk, formal labor and
migrant workers, workers in the informal sector, indigenous
peoples and cultural communities, women, persons with
disabilities, senior citizens, victims of calamities and disasters,
youth and students, children, or urban poor, the selection of
which shall be facilitated by the LPRAP facilitator; and
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3. a third CSO representative who is a member of the city
or municipal local development council.

20. A. Sustainable Livelihood Program:
DSWD
-Microenterprise Development
MENU OF PROGRAMS Track
MENU
(Php 10,000.00/pax capital assistance based on the need of the project)
OF
- Skills Training
PROGRA
- Common Service Facilities
M
B. KALAHI-CIDSS :
- Basic social services sub-projects: community water
systems, day care centers, barangay health stations,
electrification, and tribal housing/shelter (DCC, BHS, - Php
750k-800k)
- Basic access infrastructure: access roads, small
bridges/footbridges and access trails
- Community production, economic support and common
services facilities: community economic enterprise training,
equipment and materials support sub-projects, pre- and postharvest and small scale irrigation

21. MENU OF PROGRAMS
DSWD
B.KALAHI-CIDSS:
- Environmental protection and conservation: drainage,
river/flood control, sea wall, soil protection (rip rap), artificial
coral reef sanctuary and sanitation facilities; and
- Skills training and capability building sub-projects and others
like light house/eco-tourism sub-projects
C.Protective Services
-Infrastructure Projects (Construction & Repair of DCC, Evacuation Center,
Crisis Center)
- Alternative program for older persons (feeding, CapBuild)
- Capacity Building for the basic sectors
- Supervised Neighborhood Play (SNP) – feeding program

22. PROJECT IDENTIFICATION

Project Identification: NEGATIVE LIST
Projects below P500,000
 Expansion of Pantawid Pamilya, Social Pension for
Indigents Senior Citizens, PhilHEALTH coverage,
vaccination programs
 Housing Projects
 Construction of school buildings, classrooms and rural
health units
 Farm to Market Roads
 Law enforcement, fire protection and jail management
related projects
 Construction of city hall, training centers and other
multi-purpose buildings
 Purchase of motor vehicles, except those used for rescue
in times of disaster
 International Training, scholarships
