Guidelines on the

Harmonization of Local
Planning, Investment
Programming, Revenue
Administration, Budgeting
and Expenditure Management

 Provide guidelines on the harmonization and

synchronization of local planning, investment programming,
revenue administration, budgeting and expenditure
management.
PLANNING & INVESTMENT PROGRAMMING

INDICATIVE "(Offerings)"

REVENUE
ADMINISTRATION

BUDGETING &
EXPENDITURE
MANAGEMENT

PRESCRIPTIVE

PLANNING
NEDA
NATIO
NAL

REGIO
NAL

PROVIN
CIAL

NPF
P

MTP
DP

RPF
P

RDP

PDP
FP
HLU
RB

CITY/
MUN.

CLU
P

INVESTMEN
T
PROGRAMM
ING
NEDA/DB
M

MTDI
P

CDP

REVENU
E ADM.

NEP
BES
F

SIE/SR
E
REVEN

RDIP

LDIP/
AIP
DIL
G

BUDGETI
NG &
EXP.
MGT.
DBM

LEP
BESF

DBM/DI
LG

LDIP/
AIP

LEP
BES

DOF

UE
TARGET
S

SIE/SR
E
REVEN
UE
TARGET
S

SIE/SR
E
REVEN
UE
TARGET

PERIOD
ACTIVITY
COVERED
PRE-PLAN / PRE-BUDGET
PREPARATION PHASE
1st week of January
Joint
Memorandum
Circular
No. 001 s.
2007

Provincial Planning &

Development Coordinator

Setting of guidelines for data gathering

LPDC, LBO, LT, DH, NGAs/ RLAs

January - March

Updating of planning & budgeting database

LPDC, NGAs / RLAs

April - May

Analysis of the planning environment

LDC, LPDC

Updating of the appropriate AIP in the LDIP

LPDC, LBO

June 1 - 15

Preparation of the AIP for the Budget Year

PERIOD
COVERED
Not later than 1st
Week of August
Joint
Memorandum
Circular
No. 001 s.
2007

ACTIVITY
SANGGUNIAN

Approval of the AIP

PDPFP / CDP PREPARATION PHASE

1st Week of July
During Election year

Whole Month of July

LOCAL CHIEF EXECUTIVES

Reconstitution of the LDC

LDC, LPDC,
NGAs / RLAs
Formulation
of DH,
development
vision, goals, strategies,
objectives/ targets

Identification of PPAs

PERIOD
COVERED
Joint
Memorandum
Circular
No. 001 s.
2007

ACTIVITY

PDPFP / CDP PREPARATION

PHASE

Whole Month of July

JOINTLY BY THE
PROVINCE & ITS
COMPONENT
LGUs
Harmonization
&
complementation of development
vision, goals & strategic direction
between & among the province &
its component LGUs
SANGGUNIAN
Approval of the PDPFP / CDP

PERIOD
ACTIVITY
COVERED
LDIP PREPARATION PHASE
PROVIUNCES & THEIR
COMPONENT LGUs, NGAs / RLAs

Identification of areas for

complementation of PPAs between &
among provinces & their component
LGUs

Joint
Memorandum
Circular
No. 001 s.
2007

LDC, LFC, NGAs / RLAs

June July 31 during

Election year

Prioritization of PPAs
Matching of PPAs with available
resources & determination of
additional revenue sources to finance
the PPAs
SANGGUNIAN

Approval of the LDIP

PERIOD
COVERED

ACTIVITY

BUDGET PREPARATION
PHASE
Joint
Memorandum
Circular
No. 001 s.
2007

June 16 30 or 1st
Week of July During
Election Year

LOCAL CHIEF EXECUTIVE

Issuance of Budget Call

LOCAL TREASURER

July 1 - 15

Submission to LCE of Detailed 3 Year

SRE
DEPARTMENT HEADS OF LGUs

Preparation & submission of Budget

Proposals
July 16 August 31

LCE, LFC

Conduct of technical budget hearings on

proposals submitted by Department
heads

PERIOD
COVERED

ACTIVITY

BUDGET PREPARATION
PHASE
Joint
Memorandum
Circular
No. 001 s.
2007

BARANGAY TREASURER

On or before Sept. 15

Submission to the Punong Barangay

of the Estimated Receipts &
Expenditures for the ensuing Fiscal
year
LOCAL FINANCE COMMITTEE

Consolidation of Budget Proposals into

the Local Expenditure Program (LEP)

Sept. 16 30
LOCAL FINANCE COMMITTEE

Preparation of the Budget of

Expenditures and Sources of Financing
(BESF)

PERIOD COVERED

ACTIVITY
LOCAL CHIEF EXECUTIVE

Joint
Memorandum
Circular
No. 001 s.
2007

Not later than

Oct. 16

Preparation of the Budget Message

Submission of the Executive Budget to the
Sanggunian

BUDGET AUTHORIZATION
PHASE
SANGGUNIAN

Oct. 17 Onwards

Enactment of the Annual Budget for the

ensuing fiscal year by the Sanggunian

ACTIVITY
PERIOD
COVERED
BUDGET REVIEW PHASE
Within 3 days from LCE
Joint
approval of the annual /
Memorandum
supplemental budget
Circular
No. 001 s.
2007

Within 10 days from

Punong Barangay
approval of the Annual or
Supplemental Budget of
the Barangay
Within 60 days from
receipt of the Annual or
Supplemental Budget of
Barangays submitted for
review

SANGGUNIAN SECRETARY

Submission of the Annual or

Supplemental Budget of LGUs to
appropriate reviewing authority
SANGGUNIAN

Submission of the Annual or

Supplemental Budget submitted for
review
CONCERNED SANGGUNIAN /
LOCAL BUDGET OFFICER

Review of the Annual or Supplemental

Budgets of Barangays

Current State of Local Planning in the

Philippines
Inactive Local Development
Council (LDC)
Indifferent or unsupportive
Sanggunian
REGION/
PROVINCE

Lack or total absence of

vertical linkages

BARANGAY/ CITY/
MUNICIPALITY

 Lack or total absence of

horizontal linkages
among sectoral
concerns

CDP

Weak plan to
budget linkage

LGUs
Sectoral
plans
BUDGE
T

 Multiplicity of Plans

Local Poverty Reduction

Action Plan
Integrated Area
Community Peace &
Order & Public Safety
Plan
Solid Waste
Management Plan
Local Shelter
Plan
Disaster Management
Plan
Revenue Generation
Plan
Nutrition Action Plan
Small & Medium
Enterprise
Development Plan

Plan for the

Elderly
Tourism Development
Plan
Gender &
Development Plan

LGUs
CLUP
CDP
ELA

Information &
Communication
Technology Plan
Food Security Plan
Forest Management
Plan
Traffic
Management
Plan

 Only 11 out of 27 NGAmandated plans can be

recalled by LGUs
Disaster Management Plan
& the Solid Waste
Management Plan were
considered most useful

 LPRAP & GAD were consistently

mentioned as unnecessary
38% of NGA-mandated plans have
not been formulated
No sanctions anyway
Plans were not considered necessary
or beneficial
Repetitive
No focal person to steer the plan
formulation process

Why
rationalize
?

To implement the
full implications of
the Local
Government Code of
1991 pertaining to
planning

PLANNING IS AN INTEGRAL PART OF

GOVERNANCE

GOVERNANCE

PLANNING

Rationalizing local planning will enhance

the LGUs capability in the performance
of its DUAL functions:

Rationalizing local planning

will enhance the LGUs
capability in the performance
of its DUAL functions:

As a POLITICAL SUBDIVISION
of the National Government:
LGUs are in charge of the
management of its entire
geographical territory for
and in behalf of the national
government

As a CORPORATE ENTITY,
LGUs are responsible for:
Representing its inhabitants;
Promoting the general welfare
among the inhabitants within
its territorial jurisdiction, (Sec.
16, RA 7160) and
Delivering basic services &
facilities to enable its
inhabitants to develop fully

Performing planning functions

involves addressing the
following issues:
CDP/C
LUP

WHO
should be
involved in
planning?

WHY
should LGUs
plan?

HOW
are plans
prepared?

WHAT
are the tools for
plan
implementation?

LOCAL PLANNING SYSTEM

Selected
Features

RA
716
0

Faithful compliance with LGC

provisions
Limit LGU-mandated
plans to the CLUP
and CDP
CLU

CD
P

NGAs to dovetail their

requirements with the local
planning system
Less technocratic,
more participatory
and consultative

RATIONALIZED LOCAL
PLANNING SYSTEM

C
O
M
P
O
N
E
N
T
S

PLANNING
STRUCTURE

CLUP

CDP

PLANNING
MANDATES
PLANNING
PROCESS

AUTHORITY LEVERS /
TOOLS FOR PLAN
IMPLEMENTATION

C
O
M
P
O
N
E
N
T
S

RATIONALIZED LOCAL
PLANNING SYSTEM

C
O
M
P
O
N
E
N
T
S

PLANNING
STRUCTURE

C
O
M
P
O
N
E
N
T
S

LOCAL PLANNING STRUCTURE

POLITICAL COMPONENT

LOCAL
DEVELOPMENT
COUNCIL

LOCAL
SANGGUNIAN

LOCAL
SPECIAL
BODIES

SECTORAL &
FUNCTIONAL
COMMITTEES

LCE

DEPARTMENT
HEADS

PUNONG
BARANGAYS*

LPDO

CONGRESSMAN OR
REPRESENTATIVE

CSOs/ PSO

TECHNICAL COMPONENT

NGAs
Private Sector
Representatives

In case of the City/municipality; members of the Sanggunian in case of the

Barangays; mayors in case of the Province

LDC IN
PLENARY

EXECUTIVE
COMMITTEE

Formulate development plans and policies;

Formulate public investment programs;
Appraise and prioritize programs and projects;
Formulate investment incentives;
Coordinate, monitor and evaluate implementation of development programs and projects.
Barangay Development Councils:
Mobilize peoples participation in local development functions;
Prepare barangay development plans;
Monitor and evaluate implementation of national or local programs and projects.
Represent the LDC when it is not in session;
Ensure that the LDC decisions are faithfully carried out and act on matters needing immediate
attention by the LDC;
Formulate plans, policies and programs based on principles and priorities laid out by LDC.

SECRETARIAT

SECTORAL OR
FUNCTIONAL
COMMITTEES

Provide technical support to the LDC;

Document proceedings;
Prepare reports;
Other support functions as may be necessary.

Assist the LDC in the performance of its functions;

Provide the LDC with data and information essential to the formulation of plans, programs
and activities;
Define sectoral or functional objectives, set targets and identify programs, projects and
activities;
Collate and analyze data and conduct studies;
Conduct public hearings on sectoral planning, projects and activities;
Monitor and evaluate programs and projects; and
Perform functions assigned by the LDC.

Sectoral Committees
Core Technical Working Group
Must be there
Composed of Local
Government officials and
functionaries whose tasks
and responsibilities address
the concerns of the particular
sector directly or indirectly.

Expanded Technical Working

Group
Nice to have around
Other LGU officials, national
government agencies operating in
the locality, and important nongovernment organizations with
functions and advocacies touching
on the concerns of the particular
sector. When added to the core TWG
the resulting body becomes the

Full-blown Technical Working

Group
The more, the merrier
Other groups and individuals,
mainly from non-government
sectors, who have a stake in
local development in
whatever capacity, enrich and
enliven the full-blown
committees deliberations

Suggested Composition of Sectoral Committees

CORE
TECHNICAL
WORKING
GROUP

EXPANDED
TECHNICAL
WORKING GROUP

FULL-BLOWN
SECTORAL
COMMITTEE

Suggested Composition of Sectoral Committees

CORE
TECHNICAL
WORKING
GROUP

ECONO
MIC

PESO,
Agriculturist,
Tourism officer,
Coop
Development
Officer, LPDO
Staff, LDC Rep
(Barangay), LDC
Rep (CSO),
Saggunian Rep

EXPANDED
TECHNICAL
WORKING GROUP

CTWG + DTI Rep,

Chamber of
Commerce &
Industry, Trade
Unions, Bank
Managers, Market
Vendors, Sidewalk
Vendors,
Cooperatives,
Transport
Organizations

FULL-BLOWN
SECTORAL
COMMITTEE

ETWG + Lions club,

Jaycees, Rotary Club,
Academe, other
interested individuals/
groups

Suggested Composition of Sectoral Committees

CORE
TECHNICAL
WORKING
GROUP

EXPANDED
TECHNICAL
WORKING GROUP

FULL-BLOWN
SECTORAL
COMMITTEE

Suggested Composition of Sectoral Committees

CORE
TECHNICAL
WORKING
GROUP

ENVIRO
NMENTAL
MANAG
E-MENT

MPDO Staff,
LDC Rep.
(Barangay),
LDC Rep
(CSO), Head
of General
Services,
C/PENRO,
Sanggunian
Rep.

EXPANDED
TECHNICAL
WORKING GROUP

CTWG + Sanitary
Inspector,
C/PENRO,
FARMC Reps,
BFAR Rep.,
Heads of private
Hospitals,
Academe

FULL-BLOWN
SECTORAL
COMMITTEE

ETWG +
Environmental
Advocates, other
interested groups
and individuals

Suggested Composition of Sectoral Committees

CORE
TECHNICAL
WORKING
GROUP

INSTITU
-TIONAL

MPDO Staff,
LDC Rep.
(Barangay),
LDC Rep
(CSO), Local
Administrator
, Sanggunian
Rep

EXPANDED
TECHNICAL
WORKING GROUP

CTWG + HRDO,
Treasurer,
Budget Officer,
Assessor,
Academe

FULL-BLOWN
SECTORAL
COMMITTEE

ETWG + Religious
groups, Good
Governance
Advocates, Other
interested groups
& individuals

RATIONALIZED LOCAL
PLANNING SYSTEM

C
O
M
P
O
N
E
N
T
S

C
O
M
P
O
N
E
N
T
S

Two Comprehensive
Plans Mandated in
the LGC

Sec. 20 (c), RA 7160

The local government units shall, in
conformity with existing laws,
continue to prepare their respective
comprehensive land use plans
enacted through zoning ordinances
which shall be the primary and
dominant bases for the future use of
land resources: Provided, That the
requirements for food production,
human settlements, and industrial
expansion shall be taken into
consideration in the preparation of
such plans.

Sec. 3(i), RA 7160

Local government units shall share with the

National Government the responsibility in
the management and maintenance of
ecological balance within their territorial
jurisdiction, subject to the provisions of this
Code and national policies

Sec. 106, RA 7160

Each LGU shall have

a
comprehensive
multi-sectoral
development plan to
be initiated by the
LDC and approved
by its sanggunian.

Sec. 16, RA 7160

Each LGU shall exercise the powers expressly

granted, those necessarily implied from, as well as
powers necessary, appropriate, or incidental of its
efficient and effective governance, and those
which are essential to the promotion of the general
welfare.

Sec. 17, RA 7160

LGUs shall likewise exercise such powers and
discharge such other functions and
responsibilities as necessary, appropriate or
incidental to efficient and effective provisions of
the basic services and facilities enumerated
herein.

PRIVATE DOMAIN

(Alienable & Disposable)

ANCESTRAL
DOMAIN

PUBLIC DOMAIN
o
o
o
o
o

Untitled A & D
Timberlands
Mineral Lands
National Parks
Municipal
Waters

COMPREHENSIVE MEANS COVERING THE ENTIRE LGU TERRITORY

The Four (4) CLUP Policy Areas

LIFE SUPPORT SYSTEM

PROTECTED AREAS

NIPAS
Non- NIPAS
Protected Agricultural
Environmentally constrained
SETTLEMENT AREAS

SPACE FOR
LIVING

Urban (Town Centers)

Rural (Upland, coastal,
lowland)
IP settlements
INFRASTRUCTURE AREAS
Transport Network
Social Infrastructure
Economic infrastructure
Administrative support
PRODUCTION AREAS

SPACE FOR MAKING A LIVING

ANY TERRITORIAL UNIT

Agricultural
(Croplands,
fishery, livestock, poultry)
Industrial
Commercial
Tourism

The Comprehensive
Development
Plan
Holistic
ECONOMIC
SECTOR

INFRASTRUCTURE
SECTOR

SOCIAL
SECTOR

Integrated
Seamless
Comprehensi
ve
Development

ENVIRONMENT &
NATURAL
RESOURCES SECTOR
INSTITUTIONAL
SECTOR

Each local government

unit shall have a

comprehensive multisectoral development
plan to be initiated by
its development council

Section 16, RA 7160 General Welfare

Goals
2
3
1
4
Promotion of
health &
safety

Preservation &
enrichment of
culture
6

5
Improvement of
public morals
9

Maintenance
of peace &
order

Enhancement of
the right of the
people to a
balanced ecology
7
Employment

Preservation of comfort
and convenience of the
inhabitants

Encouragement &
support for the
development of
appropriate scientific &
technological capabilities
8

Enhancement of
economic prosperity &
social justice

RATIONALIZED LOCAL
PLANNING SYSTEM

C
O
M
P
O
N
E
N
T
S

C
O
M
P
O
N
E
N
T
S

Approach to the CDP Formulation

Process
Participator
y

Consultati
ve

Inclusive

Synchronized with the budgeting calendar

Provides for opportunities for multi-stakeholder

participation in every step of the comprehensive
development planning process through:

Mobilization of the LDC and its sectoral and functional

committees;

Interface between national government agencies;

Complementation between and among the Province and its

component cities and municipalities

Simplified Planning Process

Vision
Element
Descripto
rs

Physical
Planning
Goals

Success
Indicators

Current
Reality
Ecological
Profile
Statistical
Compendium
Thematic Maps

ELABORAT
ION OF
ENDS

Vision
Reality
Gap

CLUP

Sector
al
Goals
Whatever it
takes to
close the
gap

P
Sectoral
Objective
s
What can be
reasonably
done in 3
years

SPECIFICA
TION OF
MEANS
SPATIAL
STRATEGIES
LOCATION
PRINCIPLES
Settlement
Protection
Production
Infrastructure
DEVELOPMENT
Policies
Strategies
Programs
Projects
Legislations

INTERCHA
NGEABLE
2 Determining
Setting
the
Current Reality
Vision
in the LGU
Plan Monitoring
& Evaluation

12

Implementing the
Plan/ Enforcing
Regulations 11

Budgeting
Investment
Programming
LEGISLATIV
E AGENDA

10

Generating New
Information (Observed
Conditions)

4
Extracting
Intelligence

3
Determining Vision
Reality Gap

SIMPLIFIED
SECTORAL
PLANNING
PROCESS

Setting Goals,
Objectives &
Targets

Determining
Policy Options

9
Screening of PPAs/
Legislations

Structuring
Solutions

RATIONALIZED LOCAL
PLANNING SYSTEM

C
O
M
P
O
N
E
N
T
S

C
O
M
P
O
N
E
N
T
S

Authority Levers / Tools for Plan

Implementation
Regulation
Taxation
Public Investment
Private Investment
Incentives

Authority Levers / Tools for Plan

Implementation

Regulation
Taxation
Public Investment
Private Investment
Incentives
Co - Management

Authority Levers / Tools for Plan

Implementation

REGULATIONS
Zoning
Subdivision Regulation
Building Regulation
Environmental Law Enforcement

Authority Levers / Tools for Plan

Implementation

TAXATION
Basic Taxes
Special Levies on Property
Special Education Fund
Idle Lands Tax
Special Benefit Levy

Authority Levers / Tools for Plan

Implementation

PUBLIC INVESTMENTS

Local Development Investment

Program
Annual Investment Program

NGA Programs and Projects

Authority Levers / Tools for

Plan Implementation
PRIVATE SECTOR INVESTMENT INCENTIVES
Fiscal Policies

Build
Operate Transfer

Joint
venture

National-Local Government
Co-management of the Environment and
Natural Resources