The Department of Budget and Management (DBM) has ordered all government units (LGUs) to submit their investment plans for this year.
Budget Secretary Benjamin Diokno, in a Local Budget Circular NO. 70, said this annual investments plan (AIP) should include projects which are funded out of the development fund equivalent to 20 percent of the LGU's Internal Revenue Allotment (IRA).
According to Diokno, the AIP to be submitted by LGUs should contain specific programs, projects and activities to be funded out of the Development Fund equivalent to 20 percent of IRA, the corresponding project cost and the necessary cash flows to enable the DBM schedule the release of cash allocation for the purpose.
The budget chief said the programs, projects and activities to be included in the AIP shall be consistent with the development agenda of the region as contained in the Regional Development Investment Plan (RDIP) and in the Medium-Term Philippine Development Plan (MTPDP).
Diokno said among the projects that should be given priority are: solid waste management which may include purchase of related equipment, trucks and compactors, as well as purchase of land and sanitary landfill; purchase of lots for hospitals, health centers, day care enters and similar facilities including the construction, repair and/or maintenance of such facilities.
Other projects, Diokno said, that should be prioritized include; purchase of lot for resettlement of squatters including construction of housing units and facilities; activities in support of the Food Security Program, and the Livestock dispersal, Fisheries Development and Fish Culture Farming Programs.
He said initiatives in support of cooperative development should also be considered as part of these development projects.
Aside from other agricultural and infrastructure development projects such as irrigation, water sewerage, road and bridges, repairs of public buildings, Diokno said other capital outlay projects such as flood control program could also be considered under the AIP.
He said LGUs could also pay their loans covering goods and services.
"They should be considered with budgeting and accounting rules and regulations of the government," he said.
The AIP, Diokno said, should pass through the scrutiny of the Local Development Council (LDC) which shall formulate the AIP to be funded our of the 20 percent IRA, consistent with the said priority concerns.
The LDC will evaluate the projects based on the needs of the community; feasibility study; status of existing projects; implementation of capacity of the LGUs; and maintenance requirement of the proposed programs.
The copy of the AIP should be submitted to the DBM Regional Office not later than Jan. 31 of each year, provided, however that the submission of said AIP for calendar year 2000 shall not be later than March 31, 2000.
The Development Budget Coordinating Council (DBCC) through the national Economic Development Authority will conduct semestral review of the list of projects proposed.
The DBCC will also submit to the President recommendation on the effective implementation of the projects.