INPUT SESSION 4.

PLANNING-BUDGETING LINKAGE,
INVESTMENT PROGRAMMING
FOR EARLY GRADE LEARNING
AND WORKSHOP MECHANICS

Patrick Owen L. De Guzman

Education Policy Support Specialist
 “A budget is more than
just a series of numbers
on a page; it is an
embodiment of our
values.”
-Remarks by Senator Barack Obama during the 2005 American
Legion Legislative Rally
The Local Plan and Budget Process
 The Local Budgeting Framework
BUDGETING
DEFINITION SAMPLE APPLICATION
FRAMEWORK
An approach where citizens, through CSOs, are allowed to take
part in the process of allocating public resources. It offers
Participatory citizens the opportunity to contribute to the formulation of An accredited NGO sits at the
Budgeting options and in making choices that will affect how their Local Development Council.
government acts. It helps promote transparency, thus the potential
to reduce government inefficiencies and corruption.
The Annual Investment
This means that the budget is prepared with due regard to
Program is the annual slice of
Policy-based local government policy which should be harmonized with the
the approved Local
Budgeting development plans and reflected in the investment programs that
Development Investment
the LGUs are required to prepare.
Program.
Priority PPAs have Performance
A budgeting approach that uses performance information to link
Performance- Indicators to measure how well
funding with results and to provide basis for a more informed
informed Budgeting the goods or services are
resource allocation and management.
deliver.
Plan-Budget Linkage
The CLUP can well be regarded as the plan for
the long-term management of the local
territory. As the skeletal-circulatory framework of
the territory’s physical development, it identifies
areas where development shall happen.

The CDP is the action plan utilized by every

local administration to develop and implement
priority sectoral and cross-sectoral programs
and projects in the proper locations until the
desired shape or form of development is eventually
attained over the long term. This is consistent with
the definition of planning as “public control of the
pattern of development.”

The ELA is a planning document covering a 3-

year period corresponding to the term of local
elective officials that is mutually developed and
agreed upon by both the executive and legislative
departments of an LGU.
 Plan-Budget Linkage

The LDIP is the principal instrument for

implementing the CDP through the provision of
budget. It is a document that translates the CDP
into prioritized PPAs for funding by the LGU in
the annual general fund budget or through special
fund generation schemes.

The AIP refers to the annual slice of the LDIP,

which constitutes the total resource requirements
for all PPAs consisting of the annual capital
expenditure and regular operating requirements of
the LGU.
 Expected Inclusions in the AIP
Apart from ensuring alignment from the PDPFP, CLUP, CDP, the
AIP should be a reflection as well of the following plans:

• GAD Plan and Budget

• Local Disaster Risk Reduction and Management Plan
• Local Climate Change Action Plan;
• Peace and Order Plan;
• Local Youth Development Plan;
• Local Nutrition Action Plan;
• Annual Cultural Development Plan approved by the Local
Culture and Arts Council through a Resolution;
• Indicative Annual Procurement Plan (APP);
• List of PPAs for the Local Council for the Protection of
Children;
• List of PPAs for Senior Citizens and Persons with Disabilities;
• List of PPAs to Combat Acquired Immune Deficiency
Syndrome (AIDS);
• List of PPAs to Address the Problem of Illegal Drugs; and
• Other documents/plans as may be required in the relevant
Local Budget Memorandum to be issued by the DBM.
The Local Plan and Budget Process
The Local Plan and Budget Process
 Budget Preparation
Budget Preparation is the first phase of
the local budget process. It involves cost
estimation per PPA, preparation of
budget proposals, and preparation of the
Local Expenditure Program (LEP) and
the Budget Message. This phase starts
with the issuance of the Budget Call and
ends with the submission of the
Executive Budget to the Sanggunian on
or before October 16 of each year.
 Sources of Funds
FEES AND SHARE FROM
LOCAL TAX OTHER
INCOME THE NATIONAL
REVENUE SOURCES
GENERATION GOV’T

Refers to
Refers to local Refers to the
financial
taxes accrued 40% share of
charges in the Refers to other
to LGUs as LGUs to
form of fees for fund sources
permitted by the national taxes
the rent of such as subsidy
LGC and other as well as
government income, gains
tax laws statutory shares
property, and and premiums,
necessary to from other
purchase of loans and
finance local taxes and from
government borrowings
government the national
permits and
operations wealth
forms
 Key Takeaways
The aggregate amount appropriated should not exceed
the estimates of income. This means the expenditure
program must not go above the ceiling of projected
receipts of the LGU.

In observance of the Plan-Budget Linkage Principle, all

PPAs shall be included/listed in the approved AIP.

The LEP shall fund specific sectors or concerns as

prescribed by pertinent laws, rules and regulations.
These include funding for the following:

• Local Disaster Risk Reduction Management Fund

• Gender and Development Budget
• Local Council for the Protection of Children
• PPAs addressing needs of senior citizens
• PPAs on HIV/AIDS
• PPAs on addressing the problem of illegal drugs
• Ceiling of 30% for confidential funds under the
Peace and Order Program
 Budget
Authorization Sanggunian’s
Role in the
Budget
Budget Authorization is the second phase in Process
the local budget process. This begins when
the local sanggunian receives the Local
LCE’s Local
Expenditure Program from the Local Chief Expenditure
Executive and ends with the enactment of Program
the Appropriations Ordinance and approval
thereof by the LCE. Appropriations
Ordinance

The budget can only be authorized for

expenditure when it becomes an ordinance.
 Key Takeaways
The Sanggunian’s role is to ensure that the LEP
complies with the budgetary requirements and
general limitations imposed under the LGC and thus,
checks among others, the following:

• To verify if the PPAs in the budget are

consistent with the AIP
• To check if development projects charged
from the NTA is not less than 20%
• To check alignment of aggregate estimated
income with that of the aggregate estimated
expenditure of the LEP

Can the Sanggunian increase the proposed

amount in the LEP? No, it cannot except in cases to
satisfy statutory and contractual obligations, provided
it shall not exceed the total appropriations of the
LEP.
 Key Takeaways
What happens if the Sanggunian fails to pass the
appropriations ordinance before the start of the
ensuing fiscal year? The AO of the preceding fiscal
year shall be deemed re-enacted. This means the
budget from the previous fiscal year shall remain in
force and effect until the concerned annual AO is
passed by the Sanggunian.

A qualified majority of all duly elected members of the

Sanggunian is necessary in order to enact the
Appropriations Ordinance.

Once transmitted by the Sanggunian to the LCE for

approval, the AO is deemed effective once signed or
if left to lapse as prescribed by law.

The LCE may exercise its veto power over the AO (or
line items within it) through reasons that shall be
explicitly provided for in the veto message. On the other
hand, the Sanggunian may override the veto through
a 2/3 vote of all its members, rendering the AO as
effective without the need for approval of the LCE.
 Budget Review
Budget Review is the third phase in the local
budget process. Its primary purpose is to
determine whether the AO has complied
with the budgetary requirements and general
limitations set forth in the LGC.

It starts from the time the pertinent reviewing

authority receives the AO for review and
ends with the issuance of the review action.
Key Takeaways The Review Action of the DBM RO/SP/SB may result in
declaring the AO as either one of the following:

• Operative in its entirety – If AO is deemed fully compliant

with the budgetary requirements and general limitations of
the LGC and other provisions of applicable laws, rules and
regulations

• Operative in its entirety, subject to conditions – If AO is

deemed operative upon compliance with certain
requirements such as securing prior clearance or
documentation, approval of relevant authorities, or
addressing deficiencies as prescribed by law, and other
conditions as specified by the review action

• Inoperative in its entirety – If AO, among others, exceeds

estimates of income, non-provision or insufficiency of
provision in any budgetary requirements prescribed in the
LGC (e.g. 20% of NTA for Dev’t Projects), non-observance
of the Plan-Budget Linkage in the AIP, non-provision or
insufficiency of provision for loans and other incurred debts
of the LGU

• Inoperative in part – If AO, among others, observe the

same elements cited above but only in select PPAs
 Budget Execution
Budget Execution is the fourth phase of the
budget process in the local budgeting
process. The execution of budget involves
the release of allotments, the certification of
available appropriations and cash, the
recording of actual obligations and
disbursement of funds for approved PPAs,
and the delivery of goods and services to
target clients in the most efficient, effective,
economical, and ethical way.
 Key Takeaways
There is need to distinguish the different budgetary
accounts involved in the budget execution process.

Appropriation – An authorization made by ordinance,

directing the payment of goods and services from local
government funds under specified conditions or
purposes.

Allotment – An authorization by the LCE to a

Department/Office of the LGU which authorizes it to
incur obligations for a specific amount within its
appropriation.

Obligation – The specific amount within the allotment

which is committed to be paid by the LGU for any lawful
expenditure made by an accountable officer for and in
behalf of the LGU concerned.

Disbursement – Settlement/liquidation/payment of an
obligation incurred by the LGU the current and prior
years, involving cash and non-cash transactions and
covered by disbursement authorities.
 Budget
Accountability
Budget Accountability is the last and final phase of
the local budgeting process. It involves the use of
management control techniques to assist in tracking
of receipts of incomes/revenues and controlling
expenditures.

It covers the monitoring and analysis of all financial

transactions, the recording of budgetary accounts in
the registries, recording in the books of accounts of
all receipts and expenditures, and financial
reporting of their current status.

The assessment of performance is necessary to

introduce improvements and reforms to make the
budget more transparent to the people and
stakeholders.
Early Grade Learning – Development
& Investment Plan
Early Grade Learning – Development & Investment Plan
As a major output of the ESM, the EGL-DIP shall be the planning-budgeting document that will trigger
the process of translating commitments Implementation
onTimeline
EGL investment towards funding and implementation. This
document, among others, shall serve as compliance with the prescribed procedures (i.e., DILG Local
Planning Process and DBM Budget Operations Manual) in strategically allocating LGU public funds
to finance PPAs that cater to the realization of learning outcomes of students in the KS1.

Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

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Activity 1
Project
A

Activity 2
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

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Activity 1
Project
A

Activity 2

What pillar from

BEDP 2030 does
the PPA correspond
to?
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

What strategy does

the Project
Operationalize?
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

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Implementation ’26 ‘27
Timeline

Activity 1
Project
A

Activity 2

Indicate the
Program that the
Project belongs to.
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25

Implementation ’26 ‘27
Timeline

Activity 1
Project
A

Activity 2

Indicate the NAME

of the PROJECT
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate the
activities under the
PROJECT
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25

Implementation ’26 ‘27
Timeline

Activity 1
Project
A

Activity 2

Indicate the overall

TARGET OUTPUT
per activity
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25

Implementation ’26 ‘27
Timeline

Activity 1
Project
A

Activity 2

Indicate the specific

MOV (proof/evidence)
of the activity on an
annual basis
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25

Implementation ’26 ‘27
Timeline

Activity 1
Project
A

Activity 2

Indicate the specific

timeline of the
activity on an
annual basis
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate the total

funding requirement.
Indicate budget
breakdown if the PPA
is multi-year.
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate the source of

funds and the MOV to
guarantee certainty (e.g.
Certification from the
City Treasurer/Budget
Officer)
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate the roles and

responsibilities of involved
member-agencies.
Introduce the RACI Matrix
(Responsible, Accountable,
Consulted, Informed)
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate what the

documentary requirements are
to ensure the availment of the
fund, and other support
(policy) necessary to ensure
success in the implementation.
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Does the Project require

prerequisites to be
developed for its successful
implementation? If yes,
indicate the support
needed.
 Policy and
Implementation Breakdown of Input
Total Funding Identified Source Other
Target Timeline Commitment Prereq Remarks
Pillar Strategy Program Project Activity MOV Requirements of Funds and MOV Documentary
Output s/RACI Matrix uisites
Requirements

‘25 ‘26 ‘27 ‘25 ’26 ‘27

Activity 1
Project
A

Activity 2

Indicate any remarks

for the information of
the reader.