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NEWSLETTER

Performance-Based Allocation Scheme Approved by DIDP Board

A landmark policy on project implementation was recently approved by the DIDP Board during its meeting last November 23, 2011. This is the Performance-Based Allocation (PBA) of project funds that the DIDP receives from the National Government through the Department of Agriculture for the implementation of the DIDP Integrated Food Security Program (IFSP). The implementation of the PBA will start with the CY 2014 budget of the DIDP IFSP based on the performance of the projects funded under the CY 2012 budget.

The PBA seeks to increase the effective use of scarce government resources for better delivery of public services through improved budget utilization and accountability, and strengthened incentives for good performance by defining sanctions and benefits that are linked to the achievement of expected results. This policy is likewise supportive of the National Government's reform agenda for a performance-based management of priority projects.

Under the PBA scheme, 3 factors will be considered in determining how the project funds from DA will be shared among the 10 member LGUs. These are: 1) submission of requirements for obligation of funds, 2) physical accomplishment vis-à-vis approved implementation schedule, and 3) liquidation of fund transfers.

Prior to its presentation to the DIDP Board, the PBA was refined through 2 cycles of consultative meetings with the DIDP member LGUs and DA RFU XI. Two options for the implementation of the PBA were deliberated, and the option that was approved by the Board has the following provisions:

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