MALACAÑAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
[ Memorandum Order No. 295, May 24, 1990 ]
DIRECTING THE ADOPTION AND IMPLEMENTATION OF A SYNCHRONIZED PLANNING-PROGRAMMING-BUDGETING SYSTEM (SPPBS)
WHEREAS, the national budget is the financial translation of the priority programs and projects contained in the Medium Term Development Plan;
WHEREAS, the system and the institutional framework for coordinating planning, programming and budgeting at the national, regional, sectoral, agency and local levels have not been clearly established;
WHEREAS, the greater participation of Regional Development Councils and local government units in planning, programming and budgeting will ensure better delivery and greater accountability and public service;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
Section 1. A synchronized planning-programming-budgeting calendar shall be adopted by all national agencies, local government units and government-owned and controlled corporations which will cover a two-year period. Planning shall be undertaken two years ahead of implementation. This shall be followed by budget preparation which will be carried out for six months.
Section 2. Planning, budgeting, and project implementation shall be decentralized to local government units, agency regional offices and regional development councils and bodies. Institutional building and training programs and organizational changes shall be undertaken to strengthen and increase the participation of these government instrumentalities in development efforts.
Section 3. The Development Budget Coordination Committee (DBCC) shall be responsible for the installation and management of the synchronized planning-programming-budgeting system (SPPBS) at the national, and local levels. It shall be strengthened to undertake the following functions:
a. The supervision and coordination of the overall implementation of the system at the agency, regional, and local levels;
b. The modification of rules, form, content, and manner (and schedule of preparation of inputs and outputs), and organizational arrangements in planning, programming, and budgeting;
c. The design and implementation of institution building and training programs at the national, regional, and local levels.1aшphi1 Arrangements shall be endeavored to be made to establish an Institute of Public Finance at the University of the Philippines to undertake research, institution building, and training programs; and
d. The development of research and methodologies to upgrade planning, programming, and budgeting technologies.
Section 4. The DBCC concept shall be replicated at the regional level through the RDCs. The RDC shall be supported by a technical committee composed of selected regional officials of the National Economic and Development Authority (NEDA), the Department of Budget and Management (DBM), and the Department of Finance (DOF). The Regional Development Budget Coordination Committee (RDBCC) will serve as a forum for:
a. Coordinating the formulation of local plans, programs, and projects, and budgets in the regions;
b. Recommending the appropriate allocation criteria for distributing regional budgetary ceilings among provinces and cities; and,
c. Identifying systems and institutional requirements within provinces and regions and recommending actions and solutions to the DBCC.
Section 5. (a) It shall be understood that the implementation of the SPPBS will not alter the primary responsibilities of agencies:
(a) The NEDA shall orchestrate the formulation of the medium-term development plan, development management plan and the accompanying programming documents needed to assure its achievement.
(b) The DOF shall periodically assess and recommend improvements in the revenue structure and collection mechanism to ensure availability of funds for the priority programs of government. It shall identify sources of foreign and domestic borrowings.
(c) The DBM shall coordinate the preparation of the annual budget for submission to Congress and the Medium-Term Fiscal Plan and conduct a continuing review of the structure and management processes in the bureaucracy to evolve a lean and responsive government machinery.
(d) All other agencies of government shall formulate medium-term plans and programs that efficiently and effectively achieve their individual mandates, and continue to decentralize and devolve their operations to regional offices and local government units.
(b) It shall further be understood that the provisions of this Memorandum Order shall not affect or diminish in any way the autonomy of local governments and of the autonomous regions, as contemplated in of the Constitution and the Local Government Code.
Section 6. The DBCC is hereby ordered to prepare immediately the necessary guidelines, rules and regulations to implement this Memorandum Order.1aшphi1
Section 7. This Memorandum Order shall take effect upon the issuance of the pertinent rules and regulations.
DONE in the City of Manila, this 24th day of May, in the year of Our Lord, nineteen hundred and ninety.
(Sgd.) CORAZON C. AQUINO
President of the Philippines
By the President:
(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary
The Lawphil Project - Arellano Law Foundation
