GRASSROOTS PARTICIPATORY

BUDGETING PROCESS
(Bottom-up Budgeting)

Joint Memorandum Circular No. 4

OBJECTIVES
Budget Reform
Making the national budget more responsive to
local needs

Inclusive growth and

Local Governance Reform
poverty
reduction,
and
Providing incentives for local good governance
promoting
devolution of basic services
Strengthening the good
delivery
governance at the local
Democratic and Empowerment Project
level
Creating a conducive environment for peoples
participation
Generating demand for good governance at the
local level.

OBJECTIVES:
Section 6.2.8. All projects must contribute to:
Provision of Basic Social Services and Attainment of
the Millennium Development Goals, including poverty
reduction;
Hunger Mitigation and Elimination;
Job Generation and Inclusive Local Economic
Development
Climate Change Adaptation/Mitigation and Disaster
Preparedness

OBJECTIVES
No. Cities & Municipalities

609

1,233 1,634 1,634 ? ? ?

2013 2014 2015 2016 2017

COVERAGE
Participating Agencies (12 NGAs)
DAR, DA, DepEd, DOE, DENR, DOH,
DILG, DOLE, DSWD, DTI, DOT and
TESDA and (1) GOCC NEA through
which funding for GPB programs will
be allocated.
Oversight Agencies
DILG, DBM, DSWD, NAPC and NEDA

BUDGET CAP
Allocation per City/Municipality ( Annex
A)
-Formula:
No. of poor X P700 (Rounded to
nearest million)
- Minimum of P15million, Maximum of
P50,000

HARMONIZATION WITH LOCAL PLANNING PROCESSES

Two Modes of Grassroots Budgeting (GPB)
Which Mode SK LGUs belong?

- Regular
REGULAR
PROCESS:
- LPRAT
as a committee of the LDC
1)General Santos City

2) Alabel

3) Glan

-Enhanced Process
- To be undertaken in 271 municipalities
that have
graduated from or are currently
ENHANCED
PROCESS:
implementing
KALAHI-CIDDS
1)Kiamba
2) Maasim
3) Maitum
4) Malapatan
5) Malungon
- Integrate barangay
level planning in the

city/municipal level planning.

- LPRAT as a technical working group of
Enhanced LDC; decisions to be made in
the Enhanced LDC

Under Regular
Process:
LPRAT
- Mayor (Chair), Sangguniang
Note:
Appropriations Committee Chair, all
localofficials,
department
heads, relatives
and
Local
their immediate
(spouse,
parent,
siblings, child)
LGU
are
representatives
of and
NGAs
atemployees
the
ineligible to be elected as CSO representatives
city/municipal level (50% of LPRAT
members) shall be equal number of
Composition
government (including the LCE) and
government
representatives.
-Representatives
of CSOs elected

non-

during
the
CSO
Assembly
+
1
business
group
All CSO representatives should be residents of
representative
the
city/municipality.(50% of LPRAT
members). If more than 20% IPs, one
The
LPRAT representative
should also be composed
of at least
elected
must come
from
40% women.
the IP Sector

Note:
LPRAT

(LDC-TWG) Composition

LPRAT under Enhanced Process serves as the

Under
Enhanced
GPB:
Technical Working Group (TWG) of Enhanced Local
Development
Council (LDC)from government
- 10 Representatives
Enhanced LDC Composition:
-Chair:
5 Barangay
Development Council ViceMayor
Vice-Chair:
A CSOselected
Representative
Chairpersons
through KALAHIMembers from Government:
CIDSS
-All Punong Barangays
-Chairperson, Committee on Appropriations
--District
5 CSORepresentative
representatives in the Enhanced
Members
from CSO:
LDC
-All Vice-Chairs of BDC
-At least 5 CSO representatives elected during
assembly

REGULAR GPB Process

(Steps)

STEPS
1)
Civil Society general assemblies
Note:
Signatories must include:
-LPRAP
Orientation
on local governance and
1)Agrassroots
Pantawid budgeting
Pamilya Parent Leader (DSWD
-Municipal
Link
shall facilitate
selection) ,or
a PTA
Election
of LPRAT
representatives
3 CSO
representative
if no Pantawid
Parent
signatories (including
LPRAT Pamilya
Co-Chair)
Leader
- Report on status of 2013 and Approved list
2014 Sector
GPB (BUB)
projects or Cooperative
2)Aof Basic
Organization
-Representative
Poverty Situation Analysis
3)A CSO representative who is a member of LDC

STEPS
2) Local Poverty Reduction Action Planning
-Constitute the LPRAT
-Technical assistance by RPRAT and GPB PMO
-LPDC with LFC and other heads shall present poverty
situation
-Identify specific poverty reduction strategies and
projects to be included in the LPRAP:
80% of Budget Cap within Menu (subject to RPRAT
review and validation)
20% outside of the Menu (subject to NPRAT review
and validation)
-- Prioritize poverty reduction projects
-- Multi-year Planning approach shall be undertaken

STEPS
Note:
Both
PRINTED
(Hard)
and
ELECTRONIC (Soft) copies should
be submitted to DILG RO. The list
of priority projects must be
submitted
in
both
PDF
and
word/excel format thru e-mail.

STEPS
4: Consolidation of the List of Priority Poverty
Reduction Projects by DILG RO and submission
to NAPC and distribution to RPRAT members
5: Validation, review and revision of Priority
Poverty Reduction Projects by R/NPRAT
6: Submission of revised list of priority projects
The LPRAT shall submit its revised list of
projects signed by 3 CSO representatives
together with project briefs for each project
and SP/B resolution to the DILG RO .

STEPS
7: Integration of the LGU projects
in the budgets of participating
agencies.
8: Provision of LGU Counterpart
9: Project Implementation

COUNTERPART REQUIREMENTS
For Municipalities: cash counterpart
will be a % of the local development
fund
Proportion of GPB plus
KALAHI-CIDSS to LDF
Up to 100% of LDF

Required Cash
Counterpart
10% of LDF

Over 100% up to 150%

15% of LDF

Over 150%

20% of LDF

For Cities: Cash counterpart

will be 40% of the Budget Cap

COUNTERPART REQUIREMENTS
Non-KALAHI CIDSS LGUs, counterpart be solely based on the Budget
Cap
Additional non-cash counterpart for KALAHI-CIDSS LGUs shall be
required from the LGUs.
LGU Counterpart Funds shall be added to the funding available for GPB.
Counterpart funding need not be allocated on a per project basis.
Counterpart may be used to fund projects that are 100% funded by the
LGU.
National programs that require a counterpart, as indicated in the Menu
of Programs, shall be included as part of the LGU counterpart.

Provided that funds for monitoring and evaluation

of GPB Projects and the conduct of quarterly LPRAT
or Enhanced LDC meetings shall be included

COUNTERPART REQUIREMENTS
The counterpart to be provided must be
sourced from LGU funds. This shall be formalized
and included by the LGU in its 2015 AIP and
annual budget.
The LGU shall submit a copy of its 2015 AIP and
annual budget to the DILG Regional Office to
provide evidence that the required counterpart
funding has been included in the LGU budget.
Failure to provide counterpart funds in the
Appropriation Ordinance authorizing the local
Annual Budget for FY 2015 will result in the nonrelease of the national government funding for
the city or municipalitys GPB projects.

PROJECT IDENTIFICATION Negative List

- Below P500,000 (they can be proposed as LGU projects to
be funded through the LGU counterpart), except for
Gulayan sa Paaralan projects under DepEd;
- Expansion of Pantawid Pamilya & Social Pension for
Indigent Senior Citizens;
- Housing Projects;
- Materials Recovery Facility and Landfills;
- Vaccination program and National Health Insurance
Program;
- Construction of new school buildings and classrooms,
deployment of additional teachers and construction of
Rural Health Units;
- Farm-to-market roads;
- Projects related to law enforcement, fire protection, and
jail management;
- Construction of city/municipal hall, training centers, and
other multi-purpose buildings, and procurement of
furniture and fixtures;

PROJECT IMPLEMENTATION
Funding for GPB Projects in a city or municipal government shall only be released
if the LGU achieves the following:
Attainment of the Seal of Good Housekeeping (at least Bronze) under the CY 2013
or CY 2014 assessment.
Submission of the PFM Improvement Plan to DBM and accomplishment of the
2014 targets or undergo the DBM PFM assessment and develop an Improvement
Plan, whichever is applicable.
Required counterpart has been provided in the LGU Annual Budget
Submission of proper financial and physical accomplishment reports to the
concerned NGAs
Compliance with the intent of Grassroots Budgeting for meaningful participation of
CSOs and communities in Grassroots Budgeting.

PROJECT IMPLEMENTATION
Funding under agencies where LGUs have
unliquidated cash advances beyond the reglamentary
period will also not be released and the identified
GPB projects for FY 2015 will not be implemented.
LGUs that poorly implement their GPB projects in
2014, as determined by the RPRAT based on
guidelines that will be subsequently issued, will not
be provided funding for their priority projects under
the 2015 GPB Program.

ENHANCED BUB PROCESS

(For Municipalities that have
Graduated from or are currently
Implementation of KALAHI-CIDSS)

VARIANCES IN THE PROCESS

VARIANCES IN THE PROCESS

CALENDAR
Activity

Responsible Party

For KALAHI-CIDSS areas only: DSWD Area

Selection of BDC Vice-Chairs and Coordination Teams for
Barangay-level poverty situational KALAHI-CIDSS
analysis
1

Orientation of the RPRATS

Conduct
of
Assemblies

Civil

DILG PMO
Society

Period
Prior to
Sept 2013

Sep
Oct
Nov 22

Orientation workshops for LPRATs RPRATS

Conduct of LPRAP Workshops / LGUs

Enhanced LDC and LPRAT
meetings

Nov 1 15
Jan 16
Nov 16 Dec 15
Jan 17
Feb 7

CALENDAR
Activity
5

Submission of LPRAPs and

list of priority projects /
LDIPs to the DILG RO

Responsible Party
LGUs

Period
Dec 16
Feb 14

Forward copies of all LPRAPs RPRAT

with consolidated list of
projects / LDIPs to NAPC and
participating regional
offices; NAPC to forward to
all participating Agency
Central Offices

Dec 23

Convening of RPRAT to
validate LGU proposals;
clarify proposals with LGUs
if necessary

Jan 20
31

RPRAT

Dec 30
out to
NGAs

Feb 18-19

CALENDAR
Activity

Responsible Party
DILG PMO and
participating
agencies

Period

Convening of NPRAT to
review outside of the menu
programs

Submission of accepted and DILG PMO

rejected outside of the
menu projects to the RPRATs
together with revised Menu
of Programs

Feb 3

1
0

Inform LPRATs of rejected

projects for replacement

Feb 6

1
1

Validation workshop to
RPRATs
replace projects with LPRATs

Feb 10 21

1
2

Submission of consolidated
revised LPRAPs/ LDIP to
RPRATs together with
Sangunian Resolution

Feb 28

RPRAT

LGUs

Jan 20
31

Feb 26

CALENDAR
Activity

Responsible Party
RPRATs

Period

1
3

Submission of consolidated
list of validated projects to
NAPC

1
4

Endorsement of proposed
NAPC
BuB Projects to participating
agencies

Mar 14

1
5

Integration of BuB Proposals DBM and Agency

with NGA budget proposals Central Offices
in the NEP

Mar 15 April 14

1
6

Submission of agency
proposed budget to DBM

April 15

Participating
agencies

Mar 7