DBM Budgeting and Management Reforms EO

Section 1 directs the Department of Budget and Management (DBM) to shift public expenditure management from a cost-based approach to a performance-based approach.
Section 1 requires policy, organizational, functional, and operational refocusing strategies to address three priority concerns.
Section 1(a) mandates adoption of a medium-term expenditure framework covering not only the budget year but also subsequent years to create a more predictable planning environment.
Section 1(b) requires measures to enhance efficiency in allowing and utilizing resources, including granting agencies more authority and flexibility in budget utilization and performance incentives.
Section 1(c) requires development and implementation of a performance monitoring and evaluation system linked to resource allocation.

Section 1 sets the framework for DBM’s refocusing efforts to implement performance-based expenditure management.
Section 1(a) requires expenditures planning for the budget year and subsequent years through a medium-term expenditure framework.
Section 1(b) mandates efficiency-enhancing measures that include greater agency authority and flexibility in budget utilization and the use of performance incentives.
Section 1(c) requires a performance monitoring and evaluation system that is related to resource allocation.

Section 2 requires the DBM Secretary to review DBM’s existing operational processes, systems, and setup and determine mechanisms and strategies to implement the priority concerns.
Section 2 requires compliance with existing organizational and staffing guidelines and standards.
Section 2(1) requires ensuring the conduct of policy researches/studies and standard-setting on budgeting and management.
Section 2(2) requires integrating related or homogeneous activities into three major functional categories: (i) policy and management services, (ii) budget operations, and (iii) internal administrative and support services.
Section 2(3) requires strengthening budget operation units by shifting their functions from fund releasing/realignment to agency performance assessment and monitoring of budget utilization.
Section 2(4) requires delegating more responsibilities to the Regional Offices.
Section 2(5) requires strengthening coordinative/integrative and monitoring activities between and among Central Office units and Regional Offices.
Section 2 further authorizes the Secretary of Budget and Management to make operational/structural adjustments as necessary to achieve effectiveness and efficiency in accomplishing DBM mandates.

Section 3 requires that existing DBM personnel be redeployed as necessary in accordance with the requirements of the revised organization structure and staffing pattern.
Section 3 requires redeployment to comply with civil service rules and regulations.
Section 3 protects affected personnel by requiring that redeployment not result in the diminution in rank and compensation.

Section 4 requires that financial resources needed to implement the revised staffing pattern come from funds available in the DBM.
Section 4 prohibits implementation costs from requiring additional funds for Personal Services through the organizational and staffing modifications.

Section 5 provides that Executive Order No. 95 takes effect immediately.