The Department of Budget and Management (DBM) and the National Economic and Development Authority (NEDA) signed on Thursday a joint memorandum circular strengthening the Program Convergence Budgeting (PCB) approach, as part of the efforts to promote the efficient and effective allocation and management of fiscal resources.

DBM Secretary Amenah Pangandaman and Socio-Economic Planning Secretary and NEDA Director General Arsenio Balisacan signed the joint memorandum circular in a ceremony at the DBM’s central office in San Miguel, Manila.

“Consistent with the commitment of institutionalizing the PCB strategy in the budget process, this Joint Memorandum Circular (JMC) is being issued to further strengthen the planning-programming-budgeting continuum; institutionalize the PCB’s role in government planning; strengthen compliance across departments or agencies; and ensure consistency in implementation of existing and prospective PCB programs,” the document read.

Under the JMC, lead and participating departments and agencies are directed to establish and develop mechanisms toward a more effective and efficient implementation of existing and prospective PCB programs.

The JMC also creates the PCB Steering Committee (PCB-SC), an oversight body that will ensure the harmonized, coordinated, complementary, and synergized implementation of the PCB approach across all departments and agencies.

According to the JMC, the PCB-SC will be chaired by the NEDA Secretary and co-chaired by the DBM Secretary.

Authorized representatives, preferably with the rank of undersecretary, or their equivalent, will be designated as principal alternates to the PCB-SC Chairperson and Co-chairperson.

The PCB-SC is tasked to identify and approve the PCB programs based on the national government’s overall plan and priorities towards a more strategic and top-down approach; establish the rules for the enrollment and delisting of PCB programs and their participating agencies; and determine the rules for the conduct of PCB meetings and in the deliberation of budget proposals under the respective PCB programs.

It is also mandated to establish guidelines for resolving issues on programs, activities, and projects with multiple attributions; direct the establishment of a digital system for the management, use, and sharing of data and information on PCB programs; and oversee and monitor the implementation of the PCB programs.

Pangandaman said the issuance of the JMC aims to strengthen the linkage between planning and budgeting to reduce the incidence of overlapping programs.

“Despite the noble aspirations and goals that the PCB approach may have, we have encountered some issues and challenges throughout its implementation, which we deem necessary to be addressed if we really want for the PCB to be a major tool of the administration and the government. The first issue is most of the PCB programs are being implemented through an ad hoc approach or as needed, especially during the budget preparation process,” she said.

“In this regard, collaboration is enhanced among departments that are working towards the same sectoral goals,” Pangandaman added.

Balisacan stressed the need to tighten the links between planning, programming, and budgeting.

He said the PCB strategy plays a critical role in ensuring that scarce public resources are effectively allocated toward programs, activities, and projects that align with the Marcos administration’s socioeconomic agenda and the Philippine Development Plan (PDP) 2023-2028.

“Sufficient resources must be prudently managed and directed toward their implementation for plans to be considered effective,” he said. (PNA)