Department of Budget and Management (DBM)

The Department of Budget and Management (DBM) serves as the Philippine government’s steward of fiscal discipline and efficiency. Tasked with aligning the nation’s finances with its development goals, the department operates on a strong legal foundation dating back to 1936. Its programs are tailored to enhance the quality of life for Filipinos through strategic fund allocation, aspiring for transparency, equity, and accountability in government expenditure. 

Targeting a broad array of beneficiaries, DBM’s services cater to local government units (LGUs), government employees, and grassroots communities. The Local Government Support Fund (LGSF) offers financial aid for LGUs to push priority development projects, while the Performance-Based Bonus (PBB) rewards exemplary government workers to boost public service delivery. Furthermore, the Grassroots Participatory Budgeting (GPB) actively involves communities in planning for projects that address their critical needs. Beneficiaries can expect a structured application process with a focus on fair distribution and clear guidelines, ensuring that the department’s programs effectively contribute to national development.

dbm building
Credits: Joe Walan / Google Maps

What is the DBM?

At the core of the Philippine government’s fiscal management is the Department of Budget and Management. This agency maintains fiscal discipline and efficiency within the government at the national level. Its primary responsibility is to ensure that the nation’s funds are in line with its development goals, promoting the prudent allocation of resources across all sectors.

Credits: DBM

Legal Basis

The DBM traces its roots back to 1936 when it was established as the Budget Commission by Executive Order No. 25 under Commonwealth President Manuel L. Quezon. 

Through various legislative acts and transformations, it became the Department of Budget and Management in 1987, solidifying its role in formulating and implementing the national budget.

Mission and Vision

  • The DBM’s mission revolves around the strategic allocation of public funds to enhance the quality of life for Filipinos, aspiring for a transparent, equitable, and accountable government expenditure. 
  • By 2028, it envisions becoming a champion of sustainable economic growth through transformative budget policies, fiscal discipline, operational efficiency, and technology adoption.

Programs and Services

The department offers various programs and services designed to optimize government spending and foster national development.

Local Government Support Fund (LGSF): Provides financial assistance to local government units (LGUs) for their priority development projects.


  • Provides financial assistance to local government units (LGUs).
  • Aims to support LGUs in undertaking various programs, projects, and activities aligned with national development goals.

Types of Assistance:

  • LGSF-Financial Assistance (LGSF-FA): Supports LGUs in financing programs and projects not covered by their regular budgets, particularly those addressing:
    • Poverty reduction
    • Basic service delivery
    • Disaster response and rehabilitation
  • LGSF-Assistance to Cities (LGSF-AC): Provides additional financial aid to Highly Urbanized Cities (HUCs) for their specific needs and challenges.


  • All LGUs are eligible to apply for LGSF-FA, with priority given to:
    • Calamity-stricken areas
    • LGUs with low internal revenue potential
    • LGUs with good governance practices
  • Highly Urbanized Cities (HUCs) can apply for LGSF-AC.

Application Process:

  • LGUs submit requests for financial assistance through the Digital Requests Submission for Local Government Support Fund (DRSL) on the DBM Apps Portal.
  • DBM evaluates requests based on:
    • Necessity
    • Just and equitable distribution
    • Fund availability

Performance-Based Bonus (PBB): A merit-based incentive program for government employees, rewarding those who excel in their performance.

  • Objective: To motivate and reward government employees for outstanding performance, ultimately aiming to improve public service delivery and accountability.
  • Eligibility: All national government agencies, including bureaus, offices, and affiliated bodies, are eligible along with state universities and colleges, government-owned or controlled corporations, and local government units.
  • Criteria: The PBB is awarded based on the performance of the agency and its employees across four dimensions:
    • Performance Results: Achievements against planned targets and objectives.
    • Process Results: Efficiency and effectiveness in delivering services.
    • Financial Results: Compliance with budgetary allocation and efficient resource utilization.
    • Citizen/Client Satisfaction Results: Feedback from the public on the quality of services provided.
  • Funding: PBB funds are allocated from the national budget based on the performance rating of each agency.
  • Distribution: The PBB is distributed among eligible employees within an agency based on established guidelines and individual contributions.

Grassroots Participatory Budgeting (GPB): Empowers communities by involving them in the planning and budgeting process for projects that address their most pressing needs.


  • To involve local communities and civil society organizations in proposing and selecting development projects to be funded by the national government.
  • Aims to address local needs and priorities identified by the communities themselves.

Key Points:

  • Previously called Bottom-up Budgeting (BuB), it was renamed in 2013.
  • Implemented nationwide across all cities and municipalities.
  • Structure:
    • Community consultations: Identifying local needs and project proposals.
    • Prioritization: Ranking proposals based on community needs and feasibility.
    • Submission: Local government units (LGUs) submit prioritized proposals to the department.
    • Allocation: The department allocates budget based on proposals and national priorities.


  • Increased citizen engagement in the budget process.
  • Allocation of national funds towards community-driven projects.
  • Received the Gold Open Government Award in 2014 for its innovative approach.

Additional Notes:

  • The program focuses on projects related to poverty reduction.
  • The DBM provides guidelines and technical assistance to LGUs for implementing the GPB process.

These programs underscore the department’s commitment to ensuring that government resources are used effectively to benefit the Filipino people.

Step-by-Step Guide on How to Benefit from the Programs of the DBM

Benefiting from DBM’s programs involves a few key steps, ensuring that assistance reaches those who need it most:

  1. Identify the Program: Start by identifying which program aligns with your needs or your community’s development goals.
  2. Eligibility Check: Ensure you or your community meets the eligibility criteria for the program. This information is typically available on the DBM’s official website.
  3. Prepare the Requirements: Gather all necessary documents and requirements listed for the program application. This may include project proposals, budget plans, and other pertinent documents.
  4. Submit Application: Submit your application along with all the required documents to the appropriate DBM office or through their designated online portal, if available.
  5. Monitoring and Evaluation: Once approved, the program will be monitored by DBM, and beneficiaries may need to provide progress reports or comply with evaluation processes to ensure the program’s objectives are met.

Video: DBM Budget 101 AVP

The Department of Budget and Management offers a suite of educational videos to demystify the national budget process. This video provides a concise explanation of the budget preparation stages and the role of the Commission on Audit in ensuring fiscal responsibility. Aimed at engaging citizens, they also guide how to participate effectively in the budget process.


Fiscal Year 2024 National Budget: Empowering Filipinos and Building Resilience
This video delves into the proposed national funds for Fiscal Year 2024, which aims to bolster the purchasing power of Filipinos, enhance resilience, and address the ongoing impact of COVID-19. With a focus on social and economic services, the budget prioritizes key sectors such as agriculture, infrastructure, renewable energy, healthcare, education, social protection, and digital transformation. Additionally, it underscores the significance of climate change action, local government units, and participatory budgeting for a future-proof Philippines.


The Department of Budget and Management stands as a cornerstone of the Philippines’ journey toward sustainable development. Through its strategic fiscal policies and programs, the DBM not only manages the country’s finances but also ensures that public funds are used in a manner that brings tangible benefits to Filipinos. Whether you’re a government employee seeking performance-based incentives, an LGU looking for development funds, or a citizen interested in participatory budgeting, the DBM offers a range of programs designed to meet your needs.

Contact Information

For more detailed information about the DBM’s programs and services, or to inquire about specific assistance:

  • Main Office: Boncodin Hall, General Solano St., San Miguel, Manila
  • Website: DBM Official Website
  • Email:
  • Contact Numbers: 8657-3300 

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