Funds for ‘bottom-up’ projects rising to P35B in 2017 — DBM

THE BUDGET department earmarked more funds from next year’s P3.35-trillion national budget for projects proposed by local government units (LGUs), communities and civic organizations.

In a statement issued yesterday, the Department of Budget and Management ( DBM) announced the allocation of P35 billion for the Bottom-up Budgeting (BUB) Program in 2017.

The initiative, first implemented in 2013, provides for a participatory budgetary process by allowing local stakeholders to select priority poverty reduction programs the national government would fund.

Under the 2017 national budget, the DBM set aside 42% more funds for BUB projects over the P24.7 billion programmed this year.

The higher allocation comes as the Budget department pushes to expand the program to cover barangays. The first 12,000 barangays will receive BUB funds next year.

“For 2017, funding for BUB programs — specifically those that LGUs can implement — will be released directly to local governments,” Budget Secretary Florencio B. Abad said in the statement.

“We are moving from agen-cy-implement BUB projects to more performance-based direct downloads to LGUs. Of course, the release of these funds will depend on the performance of the LGUs.”

Of the P35 billion proposed for next year, the DBM will directly channel over half or P19.7 billion to beneficiary cities and municipalities that have complied with good governance standards.

The requirements include meeting the Good Financial Housekeeping component of the Seal of Good Local Governance and implementing Public Financial Management improvement measures.

Of the P24.7 billion allocated for BUB projects this year, only P11.7 billion was coursed to beneficiary LGUs while the remainder was released to national government agencies, according to the Budget department.

The national government awards a performance incentive of P5 million for LGUs exhibiting a “strong track record” in implementing BUB projects. The grant is intended to cover additional anti-poverty projects.

“Altogether, our goals are three-fold: to include citizens in local budgeting, to strengthen LGU capacity and accountability, and to make the budget process work for the benefit of our communities,” Mr. Abad noted.

University of the Philippines (UP) economics professor Benjamin E. Diokno regards the BUB program as a sort of “reformed political patronage” which makes local authorities more dependent on the President.

“[T]he government has used that Bottom-up Budgeting to give them additional money or additional carrots so they behave in a certain way favorable to Malacañang.”

In the April 14 session of the 2016 UP Public Lectures on the Philippine Presidency and Administration, Mr. Diokno cited the BUB initiative among President Benigno S. C. Aquino III’s faults.

Aside from fostering patronage, the economist noted how the initiative undermines the fiscal autonomy of LGUs, which must supposedly operate within the constraints of their internal revenue allotments and taxing powers.

Cities, municipalities and provinces already receive a large share in the national government’s revenues, added Mr. Diokno, who had served as Budget secretary of former President Joseph E. Estrada.

“They don’t need money. Look at how much we are giving them... They’re supposed to decide on that without anyone else’s intervention.”