THE

LOCAL GOVERNMENT UNITS

PUBLIC FINANCIAL MANAGEMENT

IMPLEMENTATION
STRATEGY

Driver of change

Competencies
Structure
Create inter-agency teams at
national and regional levels
Create and strengthen the LGU
Policy Unit in DBM

Roll-out enhanced PDPFP/CDP/LDIP

manuals and provide inetr-agency TA
support to LGUs
Capacitate Regional OAs on how to coach
LGUs in improving and tracking their PFMIPs
Provide technical training on LEE/feasibility
studies based on the enhanced LEE Guide

Clarify and clearly delineate the roles

of RIATs and LGU Policy Units at the
national level in the validation and
monitoring of PFMIPs

Knowledge Management
Establish analytical linkage among
PFMAT, LGFPMS and LGPMS

Policies
Enhance JMC No. 1
Enhance CDP/LDIP Manual
Mandate DILG and NEDA to
monitor and review CDP/PDPFP
and LDIP preparation
Institutionalize the PDPFP/
CDP as requirements in the
preparation of the local budget

Systems
Align PDPFP/CDP-LDIP-AIP with the
Budget
Revisit and harmonize planning,
budgeting, project priortization
processes and tools used by OAs
Harmonize BOM with the updated
PDPFP/CDP and LDIP process

Convergence
Strengthen convergence mechanisms
through the CCD
Develop and institutionalize
mechanisms at the OA-RO to reinforce
harmonization of the planningbudgeting-project prioritiization
process

Crucial to this cluster is the strengthening and institutionalization of convergence and coordination
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for harmonizing the technical support being provided by OAs to LGUs.
Linking budget planning to policy priorities will be actualized by aligning the development plans
(PDPFP/CDP, LDIP and AIP) with the annual budget. This entails the development and roll-out of
an enhanced CDP/LDIP manual, which adopts a new planning paradigm, and recognizes the unique
characteristics of each LGU.
To sustain
sustain the
thegains
gainsof
o policy-based
To
policy-based budgeting,
budgeting, the
the use
use of the PFMAT and PFMIPs shall be institutionalized
in the LGUs
LGUs by
by continuing
continuing to make
make the
the conduct
conduct of
of PFM
PFM assessments
assessments using the PFMAT, and
and preparation
preparation
and implementation of
Grassroots
Participatory
of PFMIPs
PFMIPsas
asrequisites
requisitesfor
forentitlement
entitlementtotofunds
fundsunder
underthe
the
Bottom-up
Budgeting
Budgeting
Process (GPBP).
(BuB) Process.

Moreover, to gain more support for PFM reforms, appropriate policies on the adoption of PFM Leadership
Awards as well as performance-based incentives shall be developed and issued.
Finally, to ensure that the establishment and operation of LEEs and PUs become an integral part of the
LGUs development and investment programming, a detailed guide on the setting-up, operation and
divestment of LEEs and PUs shall be developed and rolled-out to LGUs.

IMPLEMENTATION STRATEGY

12

Developed by LGUs in cooperation with

under the European Union funded project

SUPPORT TO THE LOCAL GOVERNMENT UNITS

FOR MORE EFFECTIVE AND ACCOUNTABLE
PUBLIC FINANCIAL MANAGEMENT