NAPC and the Aquino Administrations Anti-Poverty Strategy, Programs and Projects

The BuB Initiative:

BuB Orientation for

CITY/MUNICIPAL CSO ASSEMBLY

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Empowering Local Communities, Stakeholders and Linking them with the National Government1

Salient Features of JMC 3 - 201222

1. Background3MDG of reducing poverty from 26.5% in 2009 to 16.6% by 2015Human Development and Poverty Reduction Cluster (HDPRC)Good Governance and Anti-Corruption Cluster (GGAC) Economic Development Cluster (EDC) implement the bottom-up approach to planning and budgeting to ensure the inclusion of the funding requirements for the poverty reduction needs of focus cities and municipalities in the budget proposals of participating NGAs.

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2. Purpose4To provide participating agencies and local government units (LGUs) with the policy guidelines, processes, responsibilities and timelines in the bottom-up planning and budgeting approach to be applied in the preparation of the FY 2014 National Budget.

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3. Coverage5This 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) For Coordination and Oversight 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)5

4. Beneficiaries6 1,233 focus cities and municipalities 19.28 M poor people minimum PhP 15M; maximum PhP 40M maximum 50M for HUCs total funding commitment: PhP 20.637 B FY 2014 National Budget selected based on the: magnitude and incidence of poverty (using data from the 2009 Small Area Estimates of the National Statistical Coordination Board) cities/municipalities with high economic potentials and cities/municipalities that are highly vulnerable to geo-hazards such floods and landslides.6

5. Guidelines7PROCESSES5.1 Preparation for poverty reduction planning and budgeting5.2 Conduct of LPRAP Workshop5.3 LPRAP Endorsement of BS/CSOs5.4 Adoption and approval by the Sanggunian5.5 Submission of the List of PPRPs to the DILG Regional Office5.6 Consolidation of the List of PPRPs by the DILG Regional Office5.7 Validation of PPRPs by the RPRAT5.8 Integration of LGU Projects in the Budgets of Participating Agencies5.9 Provision of LGU Counterpart 5.10 Project Implementation

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5. Guidelines8National Development PrioritiesProvision of Basic Social Services and Attainment of the MDG, including Poverty ReductionHunger Mitigation and EliminationJob Generation and Inclusive Local Economic DevelopmentClimate Change Adaptation/Mitigation and Disaster Preparedness8

5. Guidelines9Negative List of Projects Expansion of 4Ps beneficiaries (identified thru NHTS-PR)Housing Projects (huge cost requirement)Major Flood Control Projects (huge cost requirement)Vaccination program (universal coverage)National Health Insurance Program (already provided by PhilHealth)Projects related to law enforcement: fire protection, jail management, etc. (not poverty reduction projects)Construction of city/municipal hall and other multi-purpose buildings, procurement of furnitures & fixtures (not poverty reduction projects) Construction of new school buildings and classrooms (FY 2013 fully provided)Purchase of motor vehicle (ambulance, trucks, fire trucks, etc.); andInternational trainings/scholarships9

5. Guidelines1080 % of the budget cap for each LGU shall be allocated for priority poverty reduction projects within the menu of programs (existing programs/projects of BuB participating agencies)

20% of the budget cap of each LGU may be allocated for new programs proposed by the LPRATs in accordance with Sections 5.2.9 and 5.2.1010

5. Guidelines11Submission of the List of Priority Poverty Reduction Projects duly endorsed by CSOs not later than February 15, 2013Cover letter + Sanggunian Resolution + List of PPRPs (LPRAP) + Project Brief (for each project)Electronic copy (online submission) + official hard copy11

5. Guidelines12Integration of LGU Projects in the Budgets of Participating Agencies incorporate in the within ceiling budget proposals of ACOs and submit to DBMEnsure no duplication with regular programs, in the PAMANA or in the ARMM Stimulus Fund Provision of Counterpart Funds Highly urbanized cities30% of project costAll cities 20% of project cost1st class 3rd class municipalities 15% of project cost4th class 6th class municipalities 5% of project costCash counterpart: must be sourced out from LGU funds and included in the LGUs 2014 AIP and local budgetNo counterpart in the 2014 local budget thru the Appropriation Ordinance : no release of funding for PPRPs12

5. Guidelines13Project Implementation as an incentive mechanism for governance reforms only LGUs that meet the following requirements can directly implement their BuB projects in 2014LGU is a recipient of DILGs SGH based on the 2013 assessment;Substantial progress in implementing its PFM Improvement Plan as determined by DBM;LGU has technical capacity to implement the project, as determined by the concerned participating agency (on a per project basis); andLGU has no unliquidated cash advance/s from participating agencies based on existing auditing rules and regulations (on a per agency basis)13

6. Fund Source14Funding 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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7. Roles and Responsibilities15LCEsLPRATsSangguniang Bayan/PanglungsodConcerned CSO RepresentativesRPRATsAgency Regional Offices (AROs)

Agency Central Offices (ACOs)

Head of the LPRAT, convene meeting and LPRAP workshop

Formulate & SUBMIT the LPRAP

Approves the LPRAP

Ensure integration of Basic Sector Agenda / Plans to LPRAP & endorse LPRAP submittedValidate submitted LPRAP

Review projects integrated in the LPRAP

Further review projects and incorporate in the within the ceiling proposals & submit to DBM

Please check signed JMC on their roles15

8. BuB Preparation Calendar16ACTIVITIESDATERESPON-SIBILITY CENTERStep 1: Orientation of RPRATsNov 15-30 12NAPC-PMOStep 2: Orientation Workshops for LPRATsDec 1-15 12RPRATs (with the NAPC)Step 3: Conduct of LPRAP Workshops, LPRAP Endorsement of CSOs and Approval by SanggunianDec 16, 2012 Feb 14, 2013LGUs16

8. BuB Preparation Calendar17ACTIVITIESDATERESPONSIBILITY CENTERStep 4: Submission of LPRAPs/List of Priority Poverty Reduction Projects to the RPRATFeb 15, 2013LGUsStep 5: Convening of Expanded RPRATs to Validate LGU Proposals; Clarify Proposals with LGUs, if necessaryFeb 16 Mar 28, 2013RPRATs17

8. BuB Preparation Calendar18ACTIVITIESDATERESPONSIBILITY CENTERStep 6: Forward copies of all RPRATs to NAPCMar 1, 2013RPRATsStep 7: Submission of validated list of BuB Projects to NAPC and RDCMar29, 2013RPRATs18

8. BuB Preparation Calendar19ACTIVITIESDATERESPONSIBILITY CENTERStep 8: Consolidation of regional submissionsMar 30-Apr 4, 2013NAPC-PMOStep 9: Endorsement of proposed BuB Projects to Participating AgenciesApr 5, 2013NAPC-PMO19

8. BuB Preparation Calendar20ACTIVITIESDATERESPONSIBILITY CENTERStep 10: Integration of BuB Proposals with NGA Budget Proposals in the NEPApr 6-14, 2013DBM and Agency Central OfficesStep 11: Submission of agency proposed budget to DBMApr 15, 2013Participating Agencies20Maraming salamat!2121