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Bulletin December23 2015 E Final
Bulletin December23 2015 E Final
Happy
p2 Aand
year of openness
efficiency:
A year of openness Early into the administration of President Aquino, some quarters of Philippine society doubted whether good
governance could actually make the National Budget more transparent, accountable, and citizen-centric.
and efficiency:
DBM transforms reforms to results
Now, with six months left before the transition to the next administration, all signs point to one conclusion:
the government’s budget and management reforms are showing results and working the way they are intended.
The DBM is at the heart of this transformation. As we close out another year, here are the five milestones that
shaped DBM as the central driver of reforms in government.
Writer: Joy Almazan
BuB among the 5 global fiscal transparency #BestPractices. Public Financial Management (PFM) training. The DBM,
The Bottom-up Budgeting (BuB) program bagged another with the support of the Philippines-Australia PFM Program,
international award this year when the Global Initiative developed the PFM Certificate Program (PFMCP). The
for Fiscal Transparency (GIFT) hailed the program as one program aims to ensure that PFM practitioners across the
of the five #BestPractices. It was cited during the Open bureaucracy have a common understanding of principles and
Government Partnership Global Summit in Mexico. processes in budgeting, auditing, accounting, procurement,
and cash management.
Bringing citizen engagement a notch higher, the DBM also
launched the Open BuB portal: a web-based and open data- Since its launch in October 2015, two of the program’s
enabled tool that enables the public to access information six tracks have already been rolled out. These two tracks
on the status of BuB projects and to provide feedback. are the PFM Foundation Course and the Budgeting and
Performance Course.
ISO 9001:2008
expected to conduct audits at least once a year.
affirms DBM's quality service delivery forms and client satisfaction surveys.
“
organization’s overall targets. October 29, 2015
ISO 9001:2008 QMS Certification
We need to exceed “Personnel are now more aware of the performance expected
of them,” Assistant Secretary Myrna Chua, DBM’s Overall
customer expectations Quality Management Representative, said. “Through the
sept- oct
by doing dekalidad na
serbisyo, dekalidad na
“ Office Performance Commitment Review, different delivery
units are conscious of setting, monitoring, and achieving
performance targets.”
2015
Preparation of
Action Documents
to Address Audit
As part of providing effective service delivery, documents Findings (non-con- sEPTEMBER 2015
proseso. and records are organized and properly managed to ensure
that the right and updated documents are used as reference
formities and areas
for improvement)
Presentation of
Stage 2 Audit
Findings
~ Connie Beltran especially when responding to client’s queries or when
making decisions.
fEB-mAR
This year, the Department of Budget and Management (DBM)
received its ISO 9001:2008 Certificate of Registration—the
“[Now that we are] ISO-certified, we need to strive more
for better DBM,” Beltran told DBM Bulletin. “We need 2015
first-ever department-wide certification issued to a national to exceed customer expectations by doing dekalidad na Stage 2 (On-site)
Audit (Regional
government agency on its first try. serbisyo, dekalidad na proseso.” Offices) August 2015
State 2 (On-site)
This certification affirms DBM’s efforts to improve The ISO certification applies to DBM’s central and regional Audit (Central
Start
Office)
the quality of its services to clients through a Quality offices. It covers the whole budget and management process:
Management System (QMS) that tightens the link between the formulation of budget policies, the preparation of the
the DBM’s mandate and individual employees’ functions. national budget, the monitoring and analysis of agency dec
For Connie Beltran, chief budget and management specialist
performance, and the administration of the national budget.
2014 dec
July 2012
of BMB for Economic Development Sector, she now sees
more clearly her role in evaluating budget proposals and
“This certification [is crucial] to DBM’s continued quest
to managing public funds in the most and efficient and Orientation on
Final Gap
Assessment 2014
ISO 9001:2008 Stage 1 Audit
nov
requests of agencies under coverage in achieving the DBM’s effective manner,” Secretary Florencio Abad said during (Document
mandate. This has made a big difference in her work at the the awarding of the ISO 9001:2008 certificate held on Review) by the
2013
Certifying Body
institution which she has been serving for 36 years. November 10 at the Boncodin Hall lobby.
Training-Work- sept
Her individual performance targets—one of which is “When we make it our business to ensure that government
2013
shop on QMS
to evaluate at least 85 percent of requests for budget spends within means, on the right priorities, and with Requirement and
Documentation
variation per quarter—is etched in her Office Performance measurable results, it is essential that our procedures and Identification of
QMS Core Team ocT- nOV 2014
Commitment Review (OPCR). This is then clearly linked practices for doing so are well-documented and undergo Management Review
at the Bureau/Service/
to the DBM’s organizational performance commitments continued monitoring and further improvement,” Secretary Office, Functional
in fulfilling its mandate to promote sound, efficient, and Abad added. Group and Executive
effective management of government resources. Committee Levels ocT- nOV 2014
Orientation on the
The certification is not just a title or a requirement of Implementation of
In addition, by implementing the DBM QMS, her bureau’s Performance-Based Bonus. More fundamentally, it bounds Documentation and
Records Control
files are also well-managed by the bureau’s records officer the DBM to establish review and monitoring systems that
to ensure easy retrieval and secure these from unauthorized enable it to continually improve the delivery of its services Aug-Sept 2014
access. More important, the QMS enabled her bureau to to client-agencies and citizens. QMS Cascading
introduce mechanisms to get better feedback from her Sessions
August 2014
clients, thus ensuring that the services under her division Through the DBM QMS, the department has set up an QMS Internal
truly meet their needs. Internal Quality Audit (IQA): a crucial mechanism in Quality Audit
sept- oct 2014
validating whether DBM’s current processes and procedures Training-Workshop
QMS Internal
Quality Audit
6 DBM Bulletin October- December 2015 7
EFFECT :
THE BUB How the process changes
budgeting from ground up
“Naranasan ko po na ako
yung maghanap-buhay
para sa anak ko. Na hindi
Gradually, the National Budget has become increasingly
citizen-centric.
Total Projects: 18 5
Glenn Miranda of the DBM’s Reforms and Innovations % Share of Total: 0.4%
Delivery Support Unit (RIU) shared how CSOs in a BuB- COMMUNITY
participating city showed dedication despite the odds. DEVELOPMENT
by the LGU, the Mayor cut the power off in an attempt DISASTER RISK
to stop the meeting. The CSOs were not deterred; however, MANAGEMENT
they transferred to a church, gathered manila papers and Total Projects: 1,502
ECONOMIC
In contrast, many other local officials have learned to be DEVELOPMENT
more open and supportive of civil society. Not only does Total Projects: 998
% Share of Total:
enabling citizen participation through BuB give LGUs 2.4 %
from drinking water from the well. Through BuB, citizen participation became central in Total Projects: 363
budget preparation. The program has been recognized by 500 595 % Share of Total: 0.9%
This was even at the least of her woes. As a single mother, the Global Initiative for Fiscal Transparency (GIFT) as one
of the five #BestPractices in 2015. It has also been previously
0
SOCIAL
she worried her earnings from being a farm worker would 2013 2014 2015
WELFARE
not be enough to send her child to school in the future. She conferred the Open Government Award Gold Prize by the
Total Projects: 2,123
worked as farm laborer twice every year, earning her a total Open Government Partnership (OGP). Participating LGUs
% Share of Total: 5.0 %
Budget Allocation
of P1,000.
“The programs are tailored for the communities rather than
“Projects [like barangay health stations] require technical TOURISM
All Gemma ever wanted were two simple things: making invented by some bureaucrat in an office that’s not in touch Total Projects: 450
specifications,” Miranda said. “So the MHO convenes the
both ends meet and gaining better access to clean water. with what people really need,” US Ambassador to the UN % Share of Total: 1.1%
CSOs and explains to them what should be included in their
Through Bottom-up Budgeting (BuB), both of these wishes Samantha Power said during the OGP Summit in Mexico
proposals.”
were granted. on October 28, 2015. TRANSPORT
Total Projects: 2,623
BuB challenged the prevailing dynamics of CSOs and the
Her town was among the poorest municipalities included local government. From an atmosphere where CSOs and
% Share of Total: 6.2%
in the pilot run of BuB in 2013. The local government unit The BuB Effect
LGUs are hesitant to engage each other, BuB provided a WATER
(LGU) and civil society organizations (CSOs) in her town Citizen participation in governance is not new. The Local AND SANITATION
platform where both constructively work together.
were tasked to jointly craft a Local Poverty Reduction Government Code (LGC) of 1991 mandates its practice in Total Projects: 2,81 9
Action Plan (LPRAP), a document that identifies priority local governance, the budget process included. However, % Share of Total: 6.7%
BuB allowed local governments and communities to have
projects collectively drawn from a series of consultations many of the law’s mandated mechanisms for citizen
a direct stake in preparing the plans and budgets of the OTHERS : Total Projects: 470
with the stakeholders. These projects were then funded by participation had remained ineffective. % Share of Total: 1.1%
national government. While the process meant additional
the national government through the Budget. work for DBM, said Miranda, it showed people that the GRAND TOTAL: Total Projects: 42,221
Twenty-two years after the LGC was passed, BuB created a
agency is serious in pursuing bold reforms. % Share of Total : 100%
see page 11
8 DBM Bulletin October- December 2015 9
SSL2015 a ‘win-win’
peers in private companies. Managers like Adir. Navarro get
56 percent less.
solution With a less than attractive base pay, some technical and
managerial posts remained unfilled.
Pay increase will not eat up dev't spending DBM data showed vacancies across the bureaucracy
Writers: Rupert Mangilit & Krisna Parrera make up 191,988 or 12.53 percent of the total authorized
positions. Vacancies for middle managers—SGs 21 to
25—are currently between 26 and 41 percent of the total
authorized positions under their respective salary grades.
The irony of demanding excellence from civil servants, said
Assistant Director Mercedes Navarro of the Fiscal Planning Agencies with the most unfilled positions include the
and Reforms Bureau (FPRB), is that the pay does not Commission on Audit, the Department of Finance, and the
measure up to that standard. Office of the Ombudsman. These agencies require highly
specialized talents—such as forensic auditors, financial SSL3 SSL 2015
Because the pay would not equal the service rendered, market analysts, and litigation lawyers—but are hard- Capital Outlay Personnel Services
departments tend to lose their most promising employees. pressed to compete with the market for these professionals. Can gov’t afford SSL 2015? compensation increase not only in the basic pay, but also in
DBM itself, in recent times, bled a crop of competent staff mid-year and year-end bonuses.
this year—to other government agencies, to the development Staff vacancies and discrepancies in public and private The pay increase under the new compensation scheme is
aid sector, and to the corporate world. compensation are among the concerns SSL 2015 seeks to estimated at P225.8 billion, to be given in four tranches “Putting the increase solely in basic salary will cost us 12
address. from 2016 to 2019. to 14 percent higher because we have to pay for GSIS and
What makes the situation worse is that some of DBM’s other mandatory benefits,” Asec. Chua noted. “If we put the
managers and key staff will be retiring in the next three In 2016, before the election ban on hiring takes effect in Assistant Secretary Myrna Chua said, for one, that the increase in a major bonus, then, [the government will not
years. Figures from the Human Resources Development March, the government seeks to fill up at least 25 percent government can afford the additional Personnel Services have to pay additional contributions].”
Division show 15.8 percent of the agency’s national and of its current vacancies. Under SSL 2015, salaries of middle (PS) cost because revenue collections have improved and the
regional workforce is aged 57 to 60. Another 6.3 percent is and high-level positions will increase to at least 70 percent deficit has been contained. The bonuses will not only buffer the increase in the
aged 61 to 64. of the current market rates.
employees’ mandatory contributions, but also allow them
Moreover, despite the nominal increase in the PS cost, the to take home a higher pay. The recently-passed Republic
“The opportunities are there especially as they hone their share of PS in the Budget is seen to further decrease. In Act 10653 exempts from tax bonuses below P82,000. In
expertise on government planning. We’re offering them the 2016, PS will make up only 27 percent of the Budget, from effect, 8 in every 10 government employees will receive their
future, but other institutions are offering them the now,” Once it takes effect, SSL 2015 will have 31 percent in 2010. PS is projected to further shrink to 24.9 midyear bonus in full.
said Adir. Navarro, who shared with DBM Bulletin that the following goals: percent of the Budget in 2019.
FPRB is experiencing this bleed of talent due to transfers Asec. Chua thus said, “It will be a win-win situation for
and retirement. provide equal pay for work of In contrast, spending for capital outlay, which includes both the civil servants and the government.”
equal value; the cost of building roads, schools and other social and
This year, DBM conducted a compensation review as the economic infrastructure, will actually rise to 30 percent by Instilling ‘performance’ culture
Salary Standardization Law (SSL) 3 requires. The study 2018 from a mere 13 percent in 2010.
formed the basis of the proposed SSL 2015, which has passed Besides ensuring an affordable salary increase, SSL 2015
its Third Reading at Congress and is currently deliberated in keep the pay scheme within
“SSL 2015 will not be deterrent to productive spending will enhance the existing scheme of providing performance-
Second Reading at the Senate as of this writing. means; and
towards inclusive growth,” Asec. Chua stressed. based incentives.
The study’s results confirmed Adir. Navarro’s point: civil A win-win strategy Beginning 2017, government workers will get the enhanced
servants are paid 45 percent below the market rates. tie incentives to responsibilities PBB as a year-end incentive. From a fixed rate of between
and performance. To prevent the pay increase from eating up the budget P5,000 and P35,000, government workers will now receive
As salary grades (SGs) go higher, the gap between public for development spending, the government placed the one to two months’ worth of salary for their PBB.
and private sector pay widens. Technical professionals like
Candidate Court Budget
Agriculturist I (SG 11) Teacher III (SG) 13 Senior Police (SG 20) Nurse II (SG 15) Doctor (SG 25) Carpenter II (SG 5)
Soldier (SG 7) Attorney II (SG 23) Undersecretary
(SG 30)
*SSL3: P266,508 Officer IV *SSL3: P670,416 *SSL3: P149,436
*SSL3: P230,616 *SSL3: P310,536 Day Care *SSL3: P135,180 *SSL3: P456,276 *SSL3: P985,056
*SSL3: P329,100 (SG 6)
*SSL 2015: P316,416 *SSL 2015: P1,209,456 *SSL 2015: P172,704 Worker II
*SSL 2015: P261,492 *SSL 2015: P382,860 *SSL 2015: P153,168 *SSL 2015: P938,868 *SSL 2015: P2,228,340
*SSL 2015: P460,392
*SSL3: P160,644
*SSL 2015: P183,072
*Amounts indicated
are salaries per year
see page 11
10 DBM Bulletin October- December 2015 11
in Region VIII
Patrick Lim, head of the RIU, said the slow implementation Support Fund (LGSF) beginning 2015.
Writer: Rheand Cornell Palomino of BuB projects is the biggest challenge that the BuB program
currently faces. Lim and Miranda believe that with stronger LGU support
and a wider network of partners in civil society, BuB’s share
He said that this is rooted in the weak absorptive capacity in the Budget can further increase. In the next round of
of local governments: an understandable situation, since in BuB, the oversight agencies will release stricter guidelines in
the past, poor local governments would only receive one monitoring projects, especially those that are stalled.
From The
Region
or two projects from national government in a year. Now,
Even as much remains to be done to institutionalize BuB and
Status of BuB Projects*
25,000 address challenges, the program is now making an impact
74% 64%
to ordinary people’s lives. Through water and livelihood
20,000
22%
projects implemented in Asuncion town through BuB,
15,000
Gemma saw how these little efforts make a big difference.
At most, Gemma now earns Php 1,000 weekly. Likewise,
10,000
her son is now at less risk of water-born illnesses.
5,000
Corner
12 DBM Bulletin
LS Nook
Prepared by Municipal District Public Attorney shall have the same qualifications for
appointment, rank, salaries, allowances and retirement privileges as those
the Legal Service of a Provincial Prosecutor and City Prosecutor as the case may be, of the
National Prosecution Service, respectively.
xxxx
Query1 : 5
An Act Reorganizing and Strengthening the Public Attorney’s
Office (PAO), Amending for the Purpose Pertinent Provisions of Executive
“
Order No. 292, Otherwise Known as the “Administrative Code of 1987”,
As Amended, Granting Special Allowance To PAO Officials and Lawyers,
Are retired Public Attorney’s Office (PAO) lawyers2
“ and Providing Funds Therefor
6
Section 16. Qualifications, Ranks, and Appointments of
entitled to retirement benefits granted under Prosecutors, and other Prosecution Officers. - Prosecutor with the rank
of Prosecutor V shall have the same qualification for appointment,
Republic Act (R.A.) No. 100713? rank, category, prerogatives, salary grade, and salaries, allowances, and
emoluments and other privileges, shall be subject to the same inhibitions
and disqualifications, and shall enjoy the same retirement and other
benefits as those of an Associate Justice of the Court of Appeals.
Discussion : Prosecutors with the rank of Prosecutor IV shall have the
same qualifications for appointment, rank, category, prerogatives, salary
Section 54 of R.A. No. 94065 grants PAO lawyers the grade and salaries, allowances, emoluments and other privileges, shall be
subject to the same inhibitions and disqualifications, and shall enjoy the
same retirement benefits as those of equivalent rank of same retirement and other benefit as those of a Judge of the Regional Trial
Prosecutors in the National Prosecution Service (NPS). Court.
Prosecutor with the rank of Prosecutor III shall have the same
R.A. No. 10071 was later enacted, providing under Section qualifications for appointment, rank, category, prerogatives, salary grade
166 that the Prosecutors of the NPS shall enjoy the same and salaries, allowances, emoluments and other privileges, shall be subject
to the same inhibitions and disqualifications, and shall enjoy the same
rank, salaries, allowances, and retirement benefits of justices retirement and other benefit as those of a Judge of the Metropolitan Trial
and judges, as the case may be. Court.
Prosecutor with the rank of Prosecutor II shall have the same
qualifications for appointment, rank, category, prerogatives, salary grade
However, Section 16 last paragraph of R.A. No. 10071 and salaries, allowances, emoluments and other privileges, shall be subject
to the same inhibitions and disqualifications, and shall enjoy the same
limits the retirement benefits granted thereunder to the retirement and other benefit as those of a Judge of the Municipal Trial
Prosecutors of NPS, to wit: Court in cities.
Prosecutor with the rank of Prosecutor III shall have the same
qualifications for appointment, rank, category, prerogatives, salary grade
“Section 16. xxxx The salaries, allowances and other and salaries, allowances, emoluments and other privileges, shall be subject
to the same inhibitions and disqualifications, and shall enjoy the same
emoluments herein fixed shall not apply to officers other than retirement and other benefit as those of a Judge of the Municipal Trial
those of prosecutors in the National Prosecution Service, Court in municipalities.
Xxxx
notwithstanding any provision of law assimilating the salaries The salaries, allowances and other emoluments herein fixed
of other officers to those herein mentioned.” (Boldface ours.) shall not apply to officers other than those of prosecutors in the National
Prosecution Service, notwithstanding any provision of law assimilating the
salaries of other officers to those herein mentioned.
Evident from the foregoing is the prohibition to apply the
benefits given to the Prosecutors of NPS with any other
officers. The intent is so clear that the law even usesd the
phrase “notwithstanding any provision of law assimilating
the salaries of other officers to those herein mentioned.”
This could only mean that even if PAO lawyers under
Section 5 of R.A. No. 9406 are given the same benefits as
T HE DBM B ULLETIN
that of the Prosecutors of the NPS, said provision could
not overturn the express prohibition of a later law, Section
16 last paragraph of R.A. No. 10071.