RDC XII Official Website

BACKGROUND

As provided in the Executive Order 325, all agency regional offices, state colleges and universities, and special development authorities are directed to:

Consult their respective Regional Development Councils (RDCs) in the formulation of their annual regional budgets; and
Provide feedback to RDCs on their final agency budgets and RDC-endorsed programs and projects.

A. Background
B. Review & Consultations on the FY 2006 Budget Proposals
	I. Introduction
	II. Pre-Budget Consultation
	III.Budget Review Consultation Proper
	-Review Considerations
	-Participating Agencies
	-Review Process
	-Issues
	-FY 2006 Budget Requirement for Region XII
IV. Conclusion
III. Downloads
-Summary of Decisions.....
-Sectoral and Agency Breakdown...

On the 2nd day of February, 2004, Her Excellency Gloria Macapagal Arroyo issued Memorandum Circular No. 54 "Strengthening the Regional Development Councils' Functions on the Review and Endorsement of the National Government's Budget and for Other Purposes". The Department of Budget and Management (DBM) shall include the RDC budget review and endorsement of regional agency budgets in the annual National Budget Memorandum (NBM).

Pursuant to these documents, the Regional Development Councils (RDCs) annually conduct a review on the Budget Proposals of Agency Regional Offices (AROs), State Universities and Colleges (SUCs) and Government Owned and Controlled Corporations (GOCCs).

Regional Development Council (RDC) XII Review and Consultations on the FY 2006 Budget Proposals
of Agency Regional Offices (AROs) in Region XII

I. Introduction

On 10-11 May 2005 Regional Development Council (RDC) XII conducted the Review/Consultation on the FY 2006 Budget Proposals pursuant to Executive Order 325, s. 1996; and in compliance with the Memorandum Circular 2005-7 and National Budget Memorandum (NBM) No. 98 issued by the Department of Budget and Management on 25 April 2005. The said activity was held at the Southern Mindanao Institute of Technology (SMIT), Tacurong City

II. Pre-Budget Consultation Activities

The budget consultation process in Region XII started with the conduct of Department of Budget and Management XII (DBM-RO)/ Agency ROs Budget Forum on the FY 2006 National Budget which was conducted on 05 May 2005 at Casa Ramona Hotel, Koronadal City. The purpose of the said activity was for the regional agencies to be properly guided on the preparation of their respective FY 2006 budget proposals. The RDC XII officials headed by the RDC XII Chairperson Hon. Daisy P. Avance Fuentes along with the RDC XII Co-Chair Manuel S. Bella and RDC XII Vice-Chair Hadja Sittie Mariam (Ma. Lourdes) D. Lim also attended the said Budget Forum to inform the participants regarding the conduct of the RDC XII Budget Consultation on the FY 2006 Budget Proposals and the schedule of ARO/SUC/GOCC presentation of their respective budget proposals. In preparation for the budget consultation, RDC XII directed the updating of the expenditure program for public investment (EPPI) for the period 2006-2008, consistent with Public Expenditure Management (PEM) reforms, as well as, to ensure the consistency of the proposed programs, projects and activities with the President�s 10-Point Legacy Program. The same was approved by the Executive Committee of the Council during its meeting on 05 May 2004 in Koronadal City. The said EPPI was used by the Council as one of its bases in evaluating the budget proposals of regional government entities.
III. RDC XII Budget Review and Consultation Proper

Review Considerations The review was guided by the development goals and priorities enunciated in the Medium-Term Regional Development Plan which are anchored on the 10-Point Legacy of the President; and the RDC XII-approved updated 2006-2008 Expenditure Program for Public Investment (EPPI). The respective mandates, thrusts, and priorities of the line agencies concerned were also taken into consideration. Participating Agencies The RDC Secretariat invited sixty-one (61) AROs/SUCs/GOCCs in the region to present their respective budget proposals for review. However, only thirty (38) agencies were able to present their respective proposals. The rest reported that their budgets are determined by their respective central offices. They operate only on what their central offices provide them from year to year, despite the issuance of DBM Circular Letters 2004-9, 2004-11, and 2005-7.
The thirty (38) agencies that submitted their proposed FY 2006 budgets for review were as follows:

	Sector	Agecies
	Economic (9)	DENR, DA, DOT, DTI, DLR, BFAR, MGB, DOST, EMB
	Infrastructure (7)	DPWH, PPA PMO Gen. Santos City, NIA, LTFRB, LTO, MARINA, TRANSCO
	Human Development (10)	DOLE, NCMB, DepEd, DOH, TESDA, CHED, DSWD, NHA,NCIP, POPCOM
	SUCs (4)	CFCST, CCSPC, SKPSC, USM
	Governance and Institutions Development (8)	DBM, NEDA, DILG, PNP, BJMP, Parole and Probation Administration (PPA), BLGF, RTWPB

Review Process

The proposed FY 2006 budgets of the various agency regional offices were presented by their respective heads or in their absence, the authorized representative. In their presentation, the presentors were asked to distinguish the activities under the Agency Regular Fund for 2006 and the activities proposed the Agency Nationwide/Lump Sum Fund. The presentors were each provided with the guidelines and forms that would reflect details of the priority programs/projects being proposed by the AROs/SUCs/GOCCs.

The review panel (RDC XII ExCom), examined the budget proposals against the agency EPPI for FY 2006-2008, the appropriateness of the proposed activities, possible duplication with the activities/project proposals of other agencies, service area of agencies, agency ceilings, among others.

If, in the course of the review, the draft proposal of a particular agency was not found to be in accordance with the provisions of NBM 98, particularly those under the Agency Regular Fund and the Agency Nationwide/Lump Sum Fund for 2006, and the prescribed RDC presentation format, the said concerned agency was requested to revise its proposal accordingly and present the same for another round of review within the schedule set for the RDC XII Review/Consultation.

Issues Emanating from the Review of the Budget Proposals

Several issues surfaced during the review of the budget proposals of the agency regional offices. These issues, if not given appropriate attention by their respective central offices or by other mandated national government office/body, would continue to hamper the operations of their regional offices and thereby affect the overall development of Region XII, as well as, the non-accomplishment of Region XII commitments to the 10-Point Legacy of the President for CY 2006.

	Issues/Concerns/Observations		Recommendations
	ARO Budget Support not consistent with EO 36. The budget support of the national government to some regional offices (particularly DPWH, DTI, DENR, POPCOM and BLGF) is not in accordance with Executive Order No. 36, s. 2001 which provided the reorganization of the administrative regions in Mindanao, i.e., DPWH XII still serves Lanao del Sur and Maguindanao of the Autonomous Region of Muslim Mindanao. On the other hand, the other above-mentioned agencies� budgets include appropriations for the ARMM. Thus, the overall picture of national government budgetary support for Region XII could not be clearly ascertained.		The concerned central offices of these agencies should already realign the budgets of their respective regional offices in Mindanao, particularly in Region XII, per EO 36, s. 2001. Also, the resources intended for ARMM to ensure accurate accounting to the distribution of government�s resources among the different regions.
	Program/Project Management/ Coordination � related concerns.
	Several major foreign-assisted projects are centrally managed by DAR CO. Four (4) major projects which are foreign assisted are implemented directly by DLR Central Offices thru Project Management Offices (STAR-CM, ARISP II, ARCDP, and SPOTS). This set-up would entail higher personnel costs.		DAR CO decentralize the supervision and management of these foreign-assisted projects implemented in the region. Necessary arrangements should be made such that projects are implemented by DAR XII.
	Lack of equipment for clean water testing.		In support of the National government�s 10-point legacy to provide clean water for forty thousand (40,000) barangays nationwide in the next six years, the RDC recommended that Mines and Geo-Sciences Bureau (MGB) XII must prioritize the acquisition of a geo-resistivity equipment
	Wide classroom gap. Region XII schools cannot meet the required classrooms for the students.		DPWH to include the provision of classrooms in 2006 and consider not only the future classroom requirements but the backlog as well.
	Non-inclusion of GSC Port in the Strong Republic Nautical Highway. Despite the existence of the Roll-on Roll-off (RORO) facilities, the Gen. Santos City Port is not included in the Strong Republic Nautical Highway (SRNH).		To optimize the use of these facilities and the Port itself to provide more efficient transportation of the products to the rest of the country and the world Gen. Santos City Port (Makar Port) should be included in the SRNH.

View the detailed ==> Summary of Decisions/Recomendations on Issues/Concerns

FY 2006 Budget Requirement for Region XII

After going through the process of reviewing the budget proposals, the RDC XII Executive Committee endorsed the proposed budget proposals of 38 AROs/SUCs/GOCCs (Attachment 2 � List of RDC XII Executive Committee Resolutions Passed during the FY 2006 Budget Review/Consultation on May 10-11, 2005)

The total budget proposed by AROs and four (4) SUCs for FY 2006 amounts to P 8.609 Billion. Of the total proposed budget, 58.16 percent or 5.006 Billion is earmarked for Social Development Sector; 21.87 percent or P1.883 Billion for Infrastructure Sector; 12.83 percent or P1.104 Billion for Economic Sector, and 2.40 percent or P0.206 Billion for Governance and Institutions Development. The budgetary requirement for State Universities and Colleges (SUCs) amounted to P 408.425 million or about 4.74 percent of the total.

Click here to view the sectoral and agency breakdown of the 2006 Budget Proposals for Region XII AROs and SUCs.

IV. Conclusion

Despite the short notice given to RDCs on their strengthened role in the review of agency regional budget proposals, RDC XII has nonetheless exercised this role as faithfully as it could per National Budget Memorandum No. 98 (FY 2006 Budget Call) and Circular Letter 2005-7. In the process of review, both the agency-presentor and the RDC ExCom (the review panel) better appreciated the intent, scope and limitations of these issuances. The agencies cooperated well in the budget review process and complied when requested to revise their proposals until the requirements of the RDC ExCom had been satisfied.

On the whole, the bleak fiscal scenario only suggests that for FY 2006, regional development could only modestly move forward given the limited programs/projects that could be funded by national government. The challenge, therefore, is for the region to aggressively mobilize resources not only from national government but also from the private sector and foreign institutions to implement viable projects that would help boost the socio-economic development of the region.

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